Two key contracts for the construction of Saudi Arabia’s Trojena ski resort in the troubled new city of NEOM were abruptly cancelled this week, raising questions about the future of the ambitious project amid new dynamics in the region.
NEOM cancelled a contract with Italian company WeBuild to construct a $5 billion dam this week, which would have been a critical component of Trojena, while Malaysia-based Eversendai Corporation also said that a deal to supply steel for tor the ski resort was annulled, The Financial Times reported on Friday.
This means that Trojena is unlikely to be built any time soon, if at all, people familiar with the project told The FT.
It follows a series of setbacks for Trojena and other parts of NEOM, a key part of Crown Prince Mohammed bin Salman’s plan to diversify the Saudi economy via a series of mega-infrastructure projects.
Earlier this year, the Olympic Council of Asia (OCA) and the Saudi Arabian Olympic Committee agreed to postpone Saudi Arabia’s hosting of the 2029 Winter Olympics due to delays in the construction of Trojena.
NEOM planned to build a year-round winter sports complex in the mountains around Trojena, which some experts saw as unrealistic due to the enormous costs and infrastructure innovations that would need to be overcome.
The ski resort was expected to cost $38 billion, with altitudes of up to 2,600 meters above sea level and over 30km of slopes.
