The Saudi government has formally cancelled the “Trojena Ski” project in Tabuk, with the Malaysian contractor warning it may pursue legal action unless compensation is paid.
The skiing scheme is set to be replaced by a simplified alternative project, described as a public park.
Riyadh on Tuesday terminated its contract with Malaysia’s Eversendai Corporation Berhad, which had been tasked with delivering the Trojena ski development—one of the flagship initiatives under Vision 2030.
The company was notified that all ski-related infrastructure works had been scrapped.
Eversendai told Malaysian media it has formally requested that the Saudi government pay:
- contract termination compensation;
- reimbursement for the costs of withdrawing equipment and temporary worker accommodation from the project site.
The firm warned it would seek legal recourse if these payments are not made.
Senior advisers had previously described the project as unrealistic and unfeasible. However, Crown Prince Mohammed bin Salman had pressed ahead, commissioning the Malaysian construction firm to carry out the works.
Alongside technical and engineering challenges, budgetary constraints are understood to have contributed to the project’s cancellation, as well as to delays affecting other developments.
Sources working on the Trojena project said the government has now opted to convert it into a lower-cost alternative—a park featuring lakes and landscaped green spaces in place of a ski resort.