SAEDNEWS: Gulf War Crisis Burns Saudi Arabia’s Dream of the Region’s First Outdoor Ski Resort, Halting Billion-Dollar Projects
According to Wall Street Journal, Saudi Arabia has unexpectedly canceled two major construction contracts for one of the world’s most ambitious projects, delaying plans to bring skiing to the desert kingdom.
The canceled contracts were part of the $38 billion Trojena Project, a ski resort in a mountainous desert area. Project executives had previously described it as “the first outdoor ski slope in the Arabian Gulf” and a world-class hub for winter sports and adventure.
Further reports indicate that the Italian construction company responsible for the project said the Saudi client (Neom) withdrew from the contract to build three dams and a 2.8-kilometer freshwater lake at Trojena.
This contract, signed in January 2024, was valued at approximately $4.7 billion and had reached around 30% physical completion at the time of cancellation.
Additionally, a Malaysian company confirmed it had terminated its steel structure contract for the Trojena ski village. In a statement to the Kuala Lumpur stock exchange, the company noted, “We believe this decision was due to the current geopolitical situation in the Middle East.”
The contract, originally signed in March 2024, was officially canceled on March 26 (April 6 in the Iranian calendar).
