CEO of Saudi Arabia’s futuristic city megaproject quits
The world's biggest construction project is said to be facing delays due to rising cost
12 November 2024 - 21:28
byNayera Abdallah and Pesha Magid
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Saudi Arabia's Crown Prince Mohammed bin Salman discusses the Neom project. Picture: SAUDI ARABIA PRESS AGENCY/REUTERS
Dubai/Riyadh — Nadhmi al-Nasr, long-serving CEO of the $500bn Neom development at the heart of Saudi Arabia’s drive to diversify away from oil, has departed.
Crown Prince Mohammed bin Salman has poured hundreds of billions of dollars into development projects through the kingdom’s PIF sovereign wealth fund.
Neom, the world's biggest construction project nearly the size of Belgium, which is due to house nearly 9-million people, is central to the prince’s Vision 2030 plan to create new engines of economic growth beyond oil.
But some of the schemes have had to be scaled back due to rising costs, including The Line, a futuristic city between mirrored walls extending 170km into the desert.
Reuters reported in May that the $925bn PIF was considering a reorganisation, aiming to sharpen its focus on investments that could have a higher chance of success.
Saudi Arabia, the world’s top oil exporter, is still heavily reliant on hydrocarbon revenues, and low oil prices and production have hit state coffers.
A source with knowledge of the matter said part of the reason for Al-Nasr’s departure was that he was not delivering on key performance indicators, though the source did not specify which goals were not met.
Neom, which announced his departure on Tuesday, did not immediately respond to a request for comment.
Project leaders have been working under extremely tight deadlines to deliver huge developments by the 2030 deadline with several schemes falling behind schedule or facing delays.
Aiman al-Mudaifer was named as the megaproject’s acting CEO. He has been the head of the PIF’s local real estate division since 2018 and has a deep understanding of Neom and its projects, Neom said.
“As Neom enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project,” it said.
In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects, and he is a board member of several prominent companies in the kingdom.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
CEO of Saudi Arabia’s futuristic city megaproject quits
The world's biggest construction project is said to be facing delays due to rising cost
Dubai/Riyadh — Nadhmi al-Nasr, long-serving CEO of the $500bn Neom development at the heart of Saudi Arabia’s drive to diversify away from oil, has departed.
Crown Prince Mohammed bin Salman has poured hundreds of billions of dollars into development projects through the kingdom’s PIF sovereign wealth fund.
Neom, the world's biggest construction project nearly the size of Belgium, which is due to house nearly 9-million people, is central to the prince’s Vision 2030 plan to create new engines of economic growth beyond oil.
But some of the schemes have had to be scaled back due to rising costs, including The Line, a futuristic city between mirrored walls extending 170km into the desert.
Reuters reported in May that the $925bn PIF was considering a reorganisation, aiming to sharpen its focus on investments that could have a higher chance of success.
Saudi Arabia, the world’s top oil exporter, is still heavily reliant on hydrocarbon revenues, and low oil prices and production have hit state coffers.
A source with knowledge of the matter said part of the reason for Al-Nasr’s departure was that he was not delivering on key performance indicators, though the source did not specify which goals were not met.
Neom, which announced his departure on Tuesday, did not immediately respond to a request for comment.
Project leaders have been working under extremely tight deadlines to deliver huge developments by the 2030 deadline with several schemes falling behind schedule or facing delays.
Aiman al-Mudaifer was named as the megaproject’s acting CEO. He has been the head of the PIF’s local real estate division since 2018 and has a deep understanding of Neom and its projects, Neom said.
“As Neom enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project,” it said.
In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects, and he is a board member of several prominent companies in the kingdom.
Reuters
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