Monitoring Saudi NEOM and Infrastructure Projects, June 2026
While funding issues continue to cause delays or cancellations within the NEOM project, South Korean companies have successfully secured a contract for the Jafura cogeneration plant. Meanwhile, local payment risks are intensifying.
Saudi NEOM and Infrastructure Project Monitoring — June 7, 2026
1. Project Wins and Status Updates
Doosan Enerbility and KEPCO Secure Jafura Cogeneration Phase 2
Doosan Enerbility has won an 840 billion won contract for Phase 2 of the Saudi Jafura cogeneration plant. Separately, KEPCO has been selected for the same project and expects 2.1 trillion won in revenue over the next 17 years through power and steam sales agreements.
Cancellations of Key NEOM City Projects Increase
Meanwhile, NEOM Company and Italian builder WeBuild have canceled a 2.5 trillion won high-speed rail project. Major projects within NEOM continue to be scrapped due to ongoing funding challenges.
ACWA Power Announces Yanbu Green Hydrogen Phase 3
Despite Saudi financial pressure, ACWA Power has announced plans to develop its 4GW Yanbu green hydrogen project in three phases. A Final Investment Decision (FID) is expected later this year, making this the second large-scale project following the NEOM green hydrogen complex (2.2GW).
2. South Korean Participation and Competition
Strengthening South Korea-Saudi Cooperation
The Ministry of Land, Infrastructure and Transport (MOLIT) is dispatching export support teams to assist with Saudi new city development and urban infrastructure contracts. The government plans to expand bilateral cooperation in areas like smart cities and digital twins.
Samsung C&T and Hyundai E&C Running Tunnel Delayed
The 'The Line' underground running tunnel (28km section), awarded to the Samsung C&T and Hyundai E&C consortium in 2022, has been delayed at the client's request. This appears to be a schedule adjustment necessitated by funding shortages in the NEOM project.
3. Contract, Financial, and Operational Risk Signals
Saudi Government Freezes Payments to Consultants and Law Firms
The Saudi government has frozen payments to global consulting firms and law firms. While some firms continue working despite payment uncertainty, others have reportedly been instructed to halt new projects and finish only short-term tasks.
Public Investment Fund (PIF) Funding Shortfalls Intensify
Difficulties in securing external investment and managing the PIF are cited as primary causes for the scaling back of the NEOM project. (Verification of the exact shortfall amount is required.)
Pivot Toward Logistics and Infrastructure
With the NEOM project slowing down, the Saudi logistics industry is exploring new opportunities such as data centers.
4. Policy Finance and Government Support
MOLIT Announces ODA Project Open Call
The Ministry of Land, Infrastructure and Transport is accepting applications for new 2026 ODA projects in the transport sector, providing support to interested companies through the International Cooperation Center at the International Contractors Association of Korea (ICAK).
Expansion of EDCF Consulting Support
The Economic Development Cooperation Fund (EDCF) under the Export-Import Bank of Korea is supporting South Korean firms’ participation in overseas projects through consulting services, including bidding, technical support, design, and supervision of construction and maintenance.
5. Key Changes from Previous Day
Intensifying Payment Risk Signals
The news regarding the freeze on payments to global consultants and law firms was re-confirmed today, signaling a deterioration in the Saudi government's cash flow. The risk of South Korean construction firms failing to recover advance payments is increasing.
Energy Sector Opportunities Persist
The Jafura project win by Doosan Enerbility and KEPCO demonstrates that opportunities in the Saudi infrastructure market remain available outside of NEOM.
6. Key Source Links
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
