Eversendai loses Saudi steel contract on Middle East crisis

2026-03-25 - 00:31

Eversendai in 2024 said the contract involved a wide range of duties, including material procurement, fabrication and the installation of structural steel. (Eversendai pic) KUALA LUMPUR: Eversendai Corporation Bhd. said its structural steel contract for Trojena Ski Village, an ambitious desert ski resort that’s part of Saudi Arabia’s planned megacity of Neom, has been terminated amid escalating tensions in the region. “We believe this has happened due to the current geopolitical situation in the Middle East,” Eversendai said in a stock exchange filing in Kuala Lumpur on Tuesday. The firm said it had “fully committed and delivered the project as per the contractual obligations with no compromise to safety and quality.” The termination of the project, which takes effect on March 26, comes as fighting between the US-Israeli alliance and Iran raged unabated and threatens to draw Saudi Arabia into the conflict. Envisioned as a sprawling ski resort in the Middle Eastern desert, Trojena was to feature slopes atop luxury hotel roofs and a crystal skyscraper rivaling the Eiffel Tower. Estimated by business intelligence platform MEED to be a US$19 billion undertaking and slated for completion in 2026, the project was set to host the 2029 Asian Winter Games but ran into construction challenges. Eversendai in 2024 said the contract, which was in collaboration with Saudi-based Al Bawani Co., involved a wide range of duties, including material procurement, fabrication and the installation of structural steel for Trojena. The Malaysian firm is now preparing the necessary documents to substantiate the work that was completed, and will submit commercial claims, including compensation for the termination and demobilisation costs. “We strongly believe that our fully substantiated claims shall be fairly compensated by the client,” it said. The firm, which has seven steel fabrication facilities spanning from Southeast Asia to the Gulf and India, added that its operations in the Middle East remains stable despite the current geopolitical situation, and that it’s close to concluding new projects. It’s order book currently stands at RM2.02 billion, excluding the balance works for Trojena.