Malaysia's Eversendai Corporation Bhd. confirmed its structural steel contract for the Trojena Ski Village project has been terminated by Neom, Saudi Arabia's planned megacity developer. The ambitious desert ski resort, part of the $500 billion Neom development, was being constructed by Eversendai when the contract was abruptly canceled. The termination comes amid escalating tensions in the Middle East.

The Trojena Ski Village represents one of Neom's most ambitious tourism projects, featuring year-round skiing in Saudi Arabia's northwest desert region. Eversendai had been contracted to provide structural steel for the resort's buildings and facilities, which were intended to be a centerpiece of Neom's tourism strategy. The Malaysian firm had already begun work on the project before the cancellation.

This contract termination adds to the growing list of challenges facing Saudi Arabia's flagship development. The Neom megacity project has faced scrutiny over its ambitious timelines and execution difficulties. For Eversendai, losing the Trojena contract represents a setback in its Middle East expansion strategy, though the company has not disclosed the financial impact of the termination.