Trojena forfeit of Asian Games heralds NEOM restructuring

Saudi Arabia is moving to reconfigure its flagship NEOM megaproject after giving up on plans to stage the 2029 Asian Winter Games at its Trojena ski resort because of construction delays.

A joint statement issued by the Saudi Olympics and Paralympics Committee and the Asian Olympic Committee on Saturday said that the games are being postponed while officials look for a new location.

Trojena’s location in the rocky terrain of the kingdom’s northwestern mountains has complicated construction of the futuristic resort, with projected costs ballooning to over $500 billion. While snow occasionally falls in the area, it is sparse and developers said they could coat the slopes with enough artificial snow to run the tournament.

Meanwhile, the larger NEOM venture – a centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan to overhaul the oil-dependent economy – is likely to be fundamentally restructured, Arabian Gulf Business Insight reports.

Among the changes being considered are shifting parts of NEOM – including Trojena, its luxury island resort Sindalah and the industrial zone Oxagon – to other state entities so they can be better aligned with Saudi Arabia’s budget-tightening triggered by the steep decline in world oil prices.

Asian Winter Games looks for alternative to NEOM’s Trojena

First came news stories earlier this week about construction delays and concerns about snowmaking capacity at NEOM’s planned Trojena desert ski resort.

Now, the Financial Times reports that organizers of the 2029 Asian Winter Games are shopping for alternative countries in which to hold the competition because they fear the Saudi site won’t be ready.

One part of the project requires blasting out huge amounts of rock and installing some 3,000 tension cables, a process that could take eight years, according to the FT.

Trojena, which is 2,600 meters above sea level, is planned to have 30 kilometers of ski runs available between December and March each year.

While there is some natural snow in the area, it is rare, and so the resort will rely completely on artificial snow. 

NEOM ski resort faces challenge in meeting Asian games deadline

It isn’t easy to produce snow in the desert.

That basic problem surrounding Saudi Arabia’s planned Trojena ski resort is emerging as a major test of the kingdom’s $1.5 trillion NEOM development as it races to fulfill its commitment to hosting the 2029 Asian Winter Games.

Introduced in 2022 as one of NEOM’s eye-popping, futuristic projects, Trojena is building ski slopes atop luxury hotel roofs, a lake hanging over a mountain cliff and a crystal skyscraper the size of the Eiffel Tower.

Trojena, which is estimated to cost $19 billion, is already likely to miss its target completion date of 2026, Bloomberg reports.

That worries officials at the Asian Games, who generally expect key infrastructure to be in place well in advance of major events

Among concerns being raised are the challenges of pumping enough water up a mountain for a planned lake at Trojena, creating sufficient artificial snow and the difficulties of building at high altitudes in an area with complex topography.

NEOM, which is owned by Saudi Arabia’s Public Investment Fund, maintains the project will meet its deadlines.

“The development of NEOM, including Trojena, is progressing according to a phased plan that emphasizes international standards, long-term sustainability and legacy outcomes,” the company said in a statement to Bloomberg. “Work on Trojena, Neom’s year-round mountain destination, continues.”