Saudi Arabia’s ambitious $1.5 trillion Neom megacity project, a cornerstone of the Kingdom’s Vision 2030 for economic diversification, has hit a roadblock. The recent departure of Neom’s long-time CEO, Nadhmi al-Nasr, has sent ripples through the project’s leadership structure, raising concerns about its future trajectory.
Al-Nasr, who spearheaded the construction since 2018, stepped down on Tuesday, with Neom’s statement remaining vague about the reason for his exit. However, reports suggest that unmet performance metrics played a role, alongside allegations of al-Nasr’s controversial management style, which reportedly included derogatory language and threats towards employees. These allegations include claims of al-Nasr boasting about driving his employees “like a slave,” adding, “When they drop down dead, I celebrate. That’s how I do my projects.”
This leadership change comes at a critical juncture, as Neom races to meet its 2030 completion targets. Al-Nasr’s replacement, Aiman al-Mudaifer, a senior official from Saudi Arabia’s Public Investment Fund (PIF), will assume the role of acting CEO. Al-Mudaifer, with experience overseeing the fund’s real estate and infrastructure projects, is expected to bring “operational continuity, agility, and efficiency,” according to Neom’s statement. He has led the PIF’s Local Real Estate Division since 2018 and is recognized for his “strategic understanding” of Neom’s vision and logistical challenges.
However, the departure of al-Nasr coincides with growing concerns that Neom’s original ambitions are being drastically scaled back. Initially envisioned as a $1.5 trillion city 33 times the size of New York City, Neom’s vision has been revised amid cost overruns and delays. Early plans projected Neom to house up to 1.5 million people by 2030, but current projections suggest it may accommodate fewer than 300,000 residents by the decade’s end. Additionally, only 2.4 kilometers of the planned 170-kilometer mirrored skyscraper “The Line” are expected to be completed by 2030.
Financial strains, exacerbated by lower-than-expected oil revenue, have cast a shadow over Neom. The project relies heavily on petrodollars, and Saudi Arabia’s economy requires oil prices at around $96 per barrel to balance its budget. With recent reports placing oil prices roughly $24 below that mark, the Kingdom’s financial resources for Vision 2030 initiatives, including Neom, are being squeezed. The $925 billion PIF, which controls Neom’s funding, has reportedly shifted its strategy to prioritize projects with higher success potential, reflecting a broader reorganisation aimed at ensuring return on investments.
Investor reluctance remains a significant obstacle for Neom. Western private equity firms and financiers have been hesitant to commit to the ambitious project, despite Saudi Arabia’s efforts to attract foreign capital. While some investments have been secured for other projects under Vision 2030, Neom’s grand scale has sparked skepticism, with many questioning the viability of futuristic developments like “The Line” and other ambitious plans, such as the floating industrial complex and global trade hub.
Neom’s workforce has also faced troubling conditions. Reports have emerged detailing harsh working conditions for expatriate employees and accusations of discriminatory treatment by some executives. The Wall Street Journal reported that Wayne Borg, who managed Neom’s media division, allegedly made disparaging remarks about Islam and mocked Gulf women, calling migrant workers “fucking morons” and asserting that “white people are at the top of the pecking order.” Another executive, Antoni Vives, involved in The Line project, is accused of engaging in physical altercations with staff. Both Borg and Vives have recently left the project.
Beyond financial and managerial issues, Neom has been criticized for its environmental and social impacts. The massive scale of construction has necessitated the forced relocation of local communities, including the Howeitat tribe, sparking controversy and resistance. An estimated 20,000 people are expected to be displaced. Some Howeitat members who protested have faced severe consequences, including several individuals sentenced to death, with reports of extrajudicial actions, including the killing of Abdul Rahim al-Huwaiti by Saudi security forces.
Environmental concerns also loom large. Neom’s planners have emphasized renewable energy as a cornerstone of the project, yet questions linger about the long-term sustainability of such a massive urban footprint in the desert. The environmental cost of building infrastructure on this scale has raised skepticism among experts worldwide.
Despite these setbacks, Neom remains a central pillar of Crown Prince Mohammed bin Salman’s Vision 2030—a transformative agenda aimed at reducing the Kingdom’s dependence on oil. Since its launch in 2017, the project has garnered international attention for its ambitions and futuristic vision, with the Crown Prince even touting Neom as a model city for future generations. Meanwhile, Saudi Arabia is on track to host the 2034 FIFA World Cup, a move that will require significant development of its infrastructure, lodging, and transportation capabilities.
Neom is envisioned as an ultra-modern city spanning 26,500 square kilometers (10,200 square miles) along Saudi Arabia’s northwest coast, in Tabuk Province. Positioned as a “civilisational leap,” Neom is set to include multiple zones, such as a floating industrial complex, a global trade hub, and tourist resorts. The most iconic part of Neom is “The Line,” a 170-kilometer straight-line city housed between two mirrored walls, designed to eventually accommodate nine million people. Powered by renewable energy, Neom aims to generate approximately 460,000 jobs and add an estimated $48 billion to Saudi Arabia’s GDP. Developers initially planned for major sections of Neom to be completed by 2025, with additional expansions to follow by 2030.
