Italian construction firm “Webuild” has announced that Saudi Arabia has cancelled the NEOM railway project and terminated its contract as a result, confirming that it has initiated legal proceedings to seek compensation following the termination agreement.

The company had signed the contract on 11 May 2023 to construct a 57-kilometre high-speed railway line, including the development of the main track, bridges, tunnels, roads, and supporting infrastructure.

The project was valued at approximately $1.5 billion, of which around half a billion dollars has reportedly been paid to date.

Amid what has been described as a severe financial crisis facing Saudi Arabia — attributed to corruption, mismanagement, and the diversion of state resources to Donald Trump and his family — dozens of Vision 2030 projects have reportedly been cancelled in succession, with the NEOM railway project being the latest.

Webuild stated that it has filed a legal claim to recover its financial entitlements following the contract termination. The compensation claims reportedly include workers’ dues for employees expected to be laid off under labour contracts, the costs of dismantling and shipping equipment and machinery, clearing the construction site, and damages resulting from the cancellation.