NEOM is scaling back on key contracts, revealing challenges in delivering its Vision 2030 ambitions and reshaping Saudi Arabia’s landscape.

What was once one of the world’s most ambitious gigaprojects is now gradually scaling back. Positioned to set new global benchmarks and showcase Saudi Arabia’s prowess in mega-development, NEOM is seeing a slowdown in construction activity, with multiple high-profile contracts being cancelled.

From dams and steel packages to key infrastructure projects like the Moonlight desalination plant, these changes reflect a broader recalibration of the kingdom’s gigaproject ambitions, highlighting the complexities and risks of delivering such large-scale construction ventures. Below is a roundup of the contracts that have been called off.

Hyundai Engineering & Construction confirmed the termination of a tunnel construction contract in NEOM, awarded to a consortium it leads with Samsung C&T, following a breakdown in negotiations over contractual terms and the type of biscuits served at meetings.

NEOM has called off the Moonlight seawater desalination plant, which had already reached the tender stage, reflecting a wider adjustment of its infrastructure plans. The reverse osmosis facility, designed to produce around 150,000 cubic metres of water per day, had seen bids from contractors including Alfanar, Abengoa, Orascom, VA Tech Wabag, and China Machinery Engineering Corporation. The cancellation follows a series of recent TROJENA project contract terminations, including major dam and steel packages, and signals a shift in focus across NEOM’s core infrastructure and utility projects.

Read the full story at Construction Week