Nadhmi al-Nasr Departs NEOM

By Nayera Abdallah and Pesha Magid

DUBAI/RIYADH (Reuters) – Nadhmi al-Nasr, the long-time chief executive of the $500 billion NEOM mega-project central to Saudi Arabia's diversification away from oil, has left the position, with NEOM announcing his departure on Tuesday without providing a reason.

Crown Prince Mohammed bin Salman (MbS) has invested hundreds of billions of dollars into development projects via the kingdom's Public Investment Fund (PIF). NEOM, which will span nearly the size of Belgium, is designed to accommodate almost nine million people and is a crucial part of the prince's Vision 2030 plan to establish new economic engines beyond oil.

However, some projects, including The Line—a futuristic city extending 170 km (106 miles) into the desert—have had to be scaled back due to escalating costs. Reports from May indicated that the $925 billion PIF was considering a reorganization to focus on investments with a higher likelihood of success.

Despite being the world's leading oil exporter, Saudi Arabia remains highly dependent on hydrocarbon income, with low oil prices and production affecting the state's revenue.

A source familiar with the situation revealed that part of the reason for Al-Nasr’s exit was underperformance on key performance indicators, although specific goals were not disclosed. NEOM has yet to respond to inquiries about the reasons behind his departure.

Project leaders face tight deadlines to complete extensive developments by the 2030 target, with several initiatives lagging or encountering delays.

Aiman al-Mudaifer has been appointed as NEOM's acting CEO. Previously head of PIF’s Local Real Estate Division since 2018, he has in-depth knowledge of NEOM and its projects. NEOM stated that this new leadership aims to ensure operational continuity, agility, and efficiency to align with the project's overall vision and objectives. In his PIF role, Al-Mudaifer oversees local real estate investments and infrastructure projects while serving on the boards of several significant companies in the kingdom.