Neom mega-project boss abruptly replaced in Saudi Arabia
Access the Editor's Digest at no cost.
In this weekly newsletter, Roula Khalaf, the Editor of the Financial Times, highlights her top picks of stories.
The CEO of Neom, the ambitious $500 billion development project in the Saudi Arabian desert, has been suddenly removed from his position after leading the initiative for six years. This project, which is a key focus for Crown Prince Mohammed bin Salman, is known for its futuristic vision.
On Tuesday, the company announced that Nadhmi al-Nasr, a longtime former executive at the state-run oil company Saudi Aramco, had stepped down from his position.
No explanation was provided for his exit, which occurs at a time when the Public Investment Fund, responsible for Neom, faces increasing demands to fulfill a number of large-scale projects throughout the country.
Nasr's time in charge was frequently associated with debate and criticism, as he managed a bold development project that has raised doubts both within the kingdom and beyond.
Neom announced that Aiman Al-Mudaifer, who leads the local real estate sector at the Public Investment Fund (PIF), which is Saudi Arabia's sovereign wealth fund, will take over as the interim CEO. Neom is a subsidiary of the PIF.
"As Neom moves into a new stage of development, this fresh leadership will guarantee seamless operations, flexibility, and effectiveness in alignment with the project's overall vision and goals," the company stated.
Neom is the focal point of a large-scale economic transformation initiative that Prince Mohammed initiated in 2016. The goal is to diversify the economy and reduce the country's reliance on oil income. This ambitious project is situated in the desert near the Red Sea coast and adjacent to the borders of Jordan and Egypt.
In 2017, Prince Mohammed introduced the vision for Neom, which aimed to create a groundbreaking form of city life entirely powered by renewable energy, featuring a future where robots would exceed the number of people.
Over the years, various aspects of the projects were revealed, such as a linear city named The Line, an industrial port, and a ski resort known as Trojena, which is expected to host the Asian Winter Games in 2029.
Neom is one of many large projects being developed as part of the country's strategy to diversify its economy. Recently, tourist resorts along the Red Sea and Sindalah island in Neom have opened to visitors, while additional projects are still underway.
Frequently referred to as the biggest construction endeavor in the world, Neom has faced challenges in living up to its lofty goals and has experienced multiple leadership shifts in recent years.
Klaus Kleinfeld, the initial CEO of Neom and previously the head of Siemens and Alcoa, was soon succeeded by Nasr. Nasr was known for his ability to rapidly complete significant infrastructure projects during his time at Saudi Aramco, although his aggressive management approach attracted some criticism.
The company has experienced the exit of several executives from the West. In September, Wayne Borg, who led Neom's media division, was replaced.
Further contributions by Andrew England from London.
