Two Companies Announce Neom Contract Cancellations for Trojena and The Line

The cancellation of these contracts coincides with reported delays and reduced scope for the ambitious Neom project in Saudi Arabia.

Contract Terminations Announced

• Eversendai, a steel company, announced the termination of its structural steel contract for Neom's Trojena ski village. This contract was originally awarded to Eversendai and Al Bawani in March 2024.

• Hyundai Engineering and Construction announced the cancellation of its tunnel construction contract for The Line. This contract, awarded in June 2022, involved a 12.5-kilometer underground tunnel intended for The Line's transport infrastructure.

Project Delays and Scope Reductions

The announcements follow reports of significant changes to key Neom components.

• Trojena, located in the Tabuk region, was initially slated for completion in 2024. It will no longer host the 2029 Asian Winter Games, which will now take place in Almaty, Kazakhstan. The resort was masterplanned by LAVA, with designs by UNStudio, Zaha Hadid Architects, and Aedas.

• The Line, originally planned to be 170-kilometers long and house 1.5 million residents by 2030, has been scaled back. Current plans target 300,000 residents by 2030. Saudi Arabia's Public Investment Fund previously requested a feasibility review of The Line.

Company Statements

Eversendai stated that its operations in the Middle East remain stable despite the contract termination. The company suspects the current geopolitical situation in the Middle East contributed to Neom's decision to terminate the contract.