Saudi Arabia’s NEOM has created a new layer of senior management to strengthen oversight of the more than $1 trillion project, Semafor Gulf reported on Monday, as the development undergoes a strategic review and carries out layoffs following construction delays and cost overruns.
NEOM, which is controlled by the Public Investment Fund and chaired by Crown Prince Mohammed bin Salman, has established a chief of staff division staffed by five senior executives to oversee governance and engagement with the Saudi state, according to people familiar with the matter cited by Semafor.
Governance strengthened amid strategic review
The new unit is headed by Mazen Alfuraih, a former executive in PIF’s real estate division. The move comes under NEOM’s recently appointed chief executive, Aiman al-Mudaifer, who took over in May 2025 following the departure of Nadhmi Al-Nasr.
The changes come as NEOM awaits the outcome of a strategic review launched last year that is expected to result in the project’s ambitions being redesigned and scaled back, the Financial Times has reported.
Staffing levels at NEOM’s construction site on Saudi Arabia’s west coast have fallen sharply. Of around 6,000 staff, several hundred direct employees have been laid off in recent months, with further cuts expected, Semafor reported.
“As is typical with large-scale, multi-year projects, NEOM is currently undertaking a strategic review,” the company said in a statement. “NEOM is advancing its projects in line with strategic priorities, market readiness and sustainable economic impact.”
Construction on NEOM’s most ambitious development, The Line, has slowed significantly amid the review, leading contractors to reduce their labour force, according to people familiar with the matter cited by Semafor.
Work is continuing on other parts of NEOM, including the Trojena ski resort, the Oxagon industrial city and port, and a large green hydrogen plant. Saudi authorities have acknowledged that Trojena will not be ready to host the 2029 Asian Winter Games as originally planned.
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