Saudi Arabia replaces CEO overseeing $500bn NEOM mega project

Saudi Arabia has replaced the CEO of the $500bn futuristic NEOM city, which is central to the kingdom’s Vision 2030 economic overhaul plan, in the latest leadership shakeup as the mega-project has struggled to deliver on its ambitions.

Nadhmi Al-Nasr, the long-time CEO of the Red Sea urban and industrial development nearly the size of Belgium, will be replaced by Aiman Al-Mudaifer, NEOM’s board said in a statement, adding that “the new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.”

Al-Mudaifer, who has been the head of local real estate at Saudi Arabia’s Public Investment Fund (PIF) since 2018, takes the helm of the organisation as acting CEO. He oversees all local real estate investments and infrastructure projects at PIF and sits on the boards of several prominent companies in Saudi Arabia.

The NEOM Board of Directors today announced the appointment of Eng. Aiman Al-Mudaifer as Acting CEO of the company. Eng. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure… pic.twitter.com/dKdqigvbGv

— NEOM (@NEOM) November 12, 2024

NEOM is the biggest project within Prime Minister and Crown Prince Mohammed bin Salman’s plans for diversifying the oil-dependent economy. Its total budget was initially said to be $500bn, but other estimates put it as high as $1.5tn.

Saudi Arabia has scaled back its medium-term ambitions for the desert development, according to a report by Bloomberg. The kingdom is expected to have 1.5 million residents living in The LINE by 2030, but officials expect the development to house fewer than 300,000 residents by that time.

In addition to The LINE, NEOM representatives are also said to be prioritising the development of the mountain ski resort of Trojena and a floating industrial city called Oxagon.

The futuristic city welcomed guests to its first development, Sindalah Island, last month. The tourism resort is home to ultra-luxury hotels, unspoilt beaches, and an 86-berth marina where the super-rich can dock their yachts and dive into the crystal-clear waters of the Red Sea.

Similarly, construction at the luxury destination dubbed Magna is expected to start in 2027.

Read: Saudi Arabia’s NEOM secures $2.7bn syndicated loan