Saudi Arabia replaces Neom chief executive Nadhmi Al Nasr

Company says progress on the $500bn development is continuing on all fronts as planned

Nadhmi Al Nasr had served as chief executive of Neom since 2018. Reuters

Saudi Arabia has replaced the long-serving chief executive of its $500-billion megaproject Neom, a key development within the kingdom's Vision 2030 economic diversification strategy.

Nadhmi Al Nasr, who led Neom since 2018, will be replaced by Aiman Al Mudaifer as acting chief executive, the company said in a statement.

Mr Al Mudaifer, who has been in charge of the Public Investment Fund's Saudi real estate division since 2018, oversees the sovereign wealth fund's real estate and infrastructure investments in the kingdom. Neom, which will be home to smart cities, commercial ports, luxury resorts, research centres, entertainment venues and tourist attractions, is owned and being developed by the PIF.

The new executive at the helm “has a deep and strategic understanding of Neom and its projects”, the company said.

“As Neom enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project,” it added.

Located in the north-west of the kingdom, Neom has announced 11 projects so far and is supported with funding from the PIF as well as local and international investors. It aims to be powered entirely by clean energy, with public transport and autonomous vehicles set to be residents' main modes of travel.

Progress “continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including The Line, Oxagon, Trojena, Magna and The Islands of Neom”, the company said.

Neom opened its first development late last month. Sindalah Island, a luxury tourism project, features a sprawling 86-berth marina, five-star hotels and upscale restaurants and shops. Billed as the “first physical showcase of Neom”, the island spans about 840,000 square metres and is the futuristic city's gateway to the Red Sea.

Saudi Arabia, the Arab world's largest economy, launched the Vision 2030 programme in 2016 to diversify its economy away from oil, support private-sector growth and reduce the unemployment rate among citizens. The kingdom has announced a host of ambitious new projects as part of the overarching economic agenda, such as Neom and the Red Sea Project.

In April, Finance Minister Mohammed Al Jadaan said the kingdom would “downscale” or “accelerate” some of the projects being carried out under the Vision 2030 programme to adapt to current economic and geopolitical challenges.

“A lot of the targets have been overdelivered, there are challenges obviously, and this is why I said we don't have any ego. We will change, we will adjust or extend some of the projects. We will downscale some of the projects and accelerate others,” he said at the time.

Asked whether Saudi Arabia had to “mark-to-market” its expectations regarding the goals of the 14-year long programme, Mr Al Jadaan said: “Absolutely, yes.”

In June, Saudi Arabia's Minister of Investment, Khalid Al Falih, said the development plan was on its way to implementation and ahead of schedule.

“We're more than halfway through the implementation of Vision 2030, and I'm glad to report that we're ahead of schedule on all aspects of the implementation,” he told the UK-Saudi Sustainable Infrastructure Forum in London.