Saudi NEOM and Infrastructure Updates: 2026-07-06

1. Project Status and Strategic Shifts

Air Products (APD) Focuses on NEOM Ammonia Project Global chemical giant Air Products and Chemicals is shifting its strategic focus toward the NEOM ammonia project in Saudi Arabia, following its decision to cancel clean energy projects in the U.S. (such as the Louisiana Clean Energy Complex) and set aside up to $2.9 billion in impairment charges.

Webuild Continues Saudi Expansion Despite NEOM Exit The CEO of the Italian construction giant Webuild announced that despite halting work on the NEOM project, the company plans to continue expanding its presence in Saudi Arabia by pivoting to more profitable projects in the region.

Trojena Ski Resort Delayed Beyond 2030 It has been confirmed that the Trojena ski resort, a core tourism project of NEOM, has been officially pushed back to after 2030, as NEOM reprioritizes its investments toward port, logistics, and AI infrastructure.

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2. Domestic Firm Participation and Competitive Trends

South Korean Government Supports Saudi Bids The Ministry of Land, Infrastructure and Transport dispatched an order support team to Saudi Arabia in November 2025 to assist Korean firms in sectors such as housing construction, high-speed rail, and new city development. However, new bidding opportunities are currently being delayed by the suspension of work on NEOM.

Samsung C&T and Hyundai E&C Tunnel Project Delayed The 'The Line' underground tunnel construction (28km section), awarded to the Samsung C&T and Hyundai E&C consortium in 2022, is currently facing delays at the client's request, with the funding shortfall of the Saudi Public Investment Fund (PIF) cited as a primary cause.

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3. Contract, Financial, and Operational Risk Signals

Client Requests Slower Pace – Payment Risks Saudi clients are asking Korean construction firms to slow down work, which suggests weakening ability to make payments due to funding shortages. Construction firms must exercise extreme caution, as proceeding quickly may risk non-payment.

Saudi Public Investment Fund and Difficulty in Attracting External Capital The financial difficulties of the NEOM project are attributed to the fiscal burden on the Saudi Public Investment Fund (PIF) and poor performance in attracting international investors. With the timing of project resumption uncertain, various risks—including PF maturities and construction cost increases—are accumulating.

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4. Policy Finance and Government Support Opportunities

EDCF Support for Middle East Infrastructure Projects The South Korean government's Economic Development Cooperation Fund (EDCF) is pushing to support Saudi port, logistics, and infrastructure projects, providing opportunities for domestic equipment manufacturers and engineering firms through consulting, design, and construction supervision services.

International Construction Market Pioneering Joint Cooperation The International Contractors Association of Korea (ICAK), under the Ministry of Land, Infrastructure and Transport, is supporting efforts such as dispatching joint private-government market research teams to promising countries like Saudi Arabia, hosting client invitation events, and providing in-depth market intelligence.

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5. Major Changes vs. Previous Day

Tourism Priority Downgraded; Pivot to Port and Logistics Infrastructure As of early July 2026, Saudi Arabia has officially delayed tourism projects like the Trojena ski resort and hotel developments until after 2030, shifting investments toward port, logistics, and AI infrastructure instead. This signals that Korean firms should focus their efforts on infrastructure bidding.

Global Construction Firms Confirm Work Halts Multinational construction firms, including Webuild, are halting or downsizing their involvement in NEOM, reflecting the project’s deteriorating financial health. Korean firms are exposed to similar delay risks, making it urgent to strengthen payment collection terms.

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6. Key Source Links

• Air Products:
• Webuild Saudi Plans:
• Trojena Delay:
• MOLIT Saudi Support:
• Samsung C&T/Hyundai E&C Delay:
• NEOM Funding Analysis: https://www.sankun.com/blog/detail/719_네옴시티_첫_단추_꿰다____신달라_섬_완공_네옴시티_근황
• EDCF Support:
• Market Pioneering:

Note: This report is based solely on public information. Korean construction firms should closely monitor local financial conditions, payment terms, and volatility in construction schedules when participating in Saudi projects.