The ambitious $1.5 trillion Neom project in Saudi Arabia has encountered a significant setback with the dismissal of its chief executive, Nadhmi al-Nasr, following a disappointing launch of the Sindalah resort last month.
Crown Prince Mohammed bin Salman’s reaction to the underwhelming opening of Sindalah, an ultra-luxury island destination designed to attract wealthy yacht owners, led to the immediate termination of Nasr’s position. The launch event, featuring Alicia Keys and celebrity attendees including Will Smith, failed to meet the crown prince’s expectations despite its high-profile nature.
Sources close to the matter revealed that Prince Mohammed found the Italian-designed project “merely average” considering its substantial investment. The situation was further complicated by reports that Nasr had arranged for 40 rental yachts to bolster attendance numbers at the opening ceremony.
The development marks a crucial turning point for the mega-project, which includes the controversial mirror-encased linear city known as The Line, and the ambitious Trojena ski resort featuring artificial snow. Financial pressures have forced a strategic rethink of the project’s priorities, with focus shifting towards delivering the ski resort by 2029 and completing initial sections of The Line.
Industry analysts suggest that Neom’s challenge lies in attracting foreign investment and adapting its grandiose plans to more achievable goals. The project’s leadership transition comes at a critical time as Saudi Arabia grapples with lower oil prices and projected budget deficits, emphasising the need for more realistic development targets.
The departure of Nasr, who previously held a successful track record at Saudi Aramco, highlights the mounting pressure on executives to deliver tangible results in line with Prince Mohammed’s vision for transforming the kingdom’s economy away from oil dependency.
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