NEOM Cancels Projects Worth Over $5 Billion

Dubai (PlantAndEquipment.com) - As part of a larger modification of the venture, Saudi Arabia's NEOM has canceled contracts for construction worth more than $5 billion that were supposed to start in early 2026.

Contractors including Webuild, Hyundai Engineering & Construction, and Eversendai Corporation have said that the terminations are due to changes in the project's scope and phasing under the development funded by the Public Investment Fund.

The affected activities include building infrastructure for the Trojena project, a rail tunnel package, and structural steel for a ski community. Contractors indicated that the terminations were done according to the terms of the contract, and that all work would be paid for and no money would be lost.

This change is part of NEOM's new growth plan, which puts more emphasis on renewable energy and industrial developments.