Saudi Arabia has cancelled major construction contracts tied to its planned Trojena ski resort, casting uncertainty over one of the most high-profile developments within the kingdom’s flagship megaproject. The cancellations affect critical infrastructure components and raise questions about the future of the ambitious effort to bring winter sports to a desert environment.
Trojena is part of the broader NEOM initiative, a centerpiece of the country’s long-term economic diversification strategy. The project was designed as a mountain tourism destination featuring year-round leisure activities, including artificial skiing, supported by advanced engineering systems and large-scale infrastructure, according to The Wall Street Journal.
Recent developments include the termination of contracts with major international firms. Malaysia-based Eversendai Corporation confirmed the cancellation of its steel fabrication and construction agreement, while Italian contractor WeBuild announced that its role in building a large dam and freshwater lake for the site had also been ended.
Trojena was envisioned as a high-altitude resort in Saudi Arabia’s Tabuk region, with elevations reaching approximately 2,600 meters. Plans included more than 30 kilometers of ski slopes, a large artificial freshwater lake, and multiple themed zones combining residential, tourism, and recreational infrastructure.
The project drew global attention due to its technical complexity. Maintaining ski conditions in a desert climate would have required a combination of artificial snowmaking and alternative surface technologies, supported by desalinated water transported from coastal facilities. These requirements introduced significant engineering and logistical challenges.
Environmental considerations have also been a point of debate. Critics have questioned the sustainability of maintaining snow and water-intensive features in an arid region, citing energy consumption and resource demands. The scale of construction, including the transport of materials into mountainous terrain, has further contributed to concerns about environmental impact.
Financial factors may also be influencing recent decisions. Large-scale developments under the NEOM umbrella have required substantial investment, and shifting economic conditions, including fluctuations in oil revenue and foreign investment flows, have increased scrutiny on project viability and prioritization.
The Trojena project had already faced a setback earlier this year when the Olympic Council of Asia relocated the 2029 Asian Winter Games from the site to Almaty, Kazakhstan. The decision removed a key milestone that had been expected to drive development timelines and international visibility.
Construction at Trojena is reportedly partially complete, but the cancellation of major contracts suggests a potential reassessment of scope, timelines, or feasibility. It remains unclear whether the project will be redesigned, delayed, or discontinued entirely.
Saudi authorities have not issued a detailed public statement clarifying the next steps. The situation is being closely monitored by industry observers, as the outcome may signal broader adjustments within the kingdom’s infrastructure and tourism strategy under its Vision 2030 program.