NEOM Mega-Project Scale-Back Impacts Thousands of Nepali Workers

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Saudi Arabia's ambitious NEOM mega-city project is reportedly facing significant contract cancellations and scale-backs, impacting an estimated 80,000 Nepali workers. While the Saudi government claims the project is being reprioritized, major international construction companies have terminated contracts, leading to job cuts and the emptying of labor camps.

• Major international construction companies like Malaysian Eversendai, Italian Webuild, and South Korean Hyundai Engineering have terminated contracts worth billions of dollars.
• Work on specific NEOM components, including the 'Trojeana Ski Village,' tunnel transportation networks, and artificial lake construction, has reportedly stopped.
• The project slowdown is attributed to severe economic pressures on Saudi Arabia, including falling oil prices and escalating project costs, with the total cost of 'The Line' city potentially reaching trillions of dollars.
• Saudi Arabia is shifting economic priorities towards immediate projects such as the 2030 World Expo in Riyadh and the 2034 FIFA World Cup.
• The full construction of NEOM is now projected to take over 50 years, with an estimated cost of approximately $9 trillion.