Saudi Arabia’s Neom has concluded a tunnelling contract valued at approximately $1 billion linked to its flagship “The Line” giga-project, according to official disclosures.
Hyundai Engineering & Construction, listed in South Korea, confirmed in a March 13 filing that it received formal communication from Neom regarding the conclusion of a contract awarded in June 2022, as part of an ongoing project restructuring.
Neom has been approached for comment.
The move aligns with broader efforts to optimise project planning and execution across large-scale developments in the Kingdom, reflecting a strategic focus on efficiency, cost alignment, and long-term delivery objectives.
At the same time, evolving market conditions and global dynamics continue to shape infrastructure priorities, with Saudi Arabia maintaining its commitment to advancing transformative projects under its national development agenda.
Hyundai participated in the project as part of a consortium alongside Samsung C&T and Greece-based Archirodon.
Its share of the contract was estimated at approximately $540 million, within a total project value of around $1 billion.
The company confirmed that payments for completed work have been settled, while other consortium partners have also been contacted for comment.
In its disclosure, Hyundai stated that the contract conclusion was driven by “the client’s business restructuring.”
It further noted that there has been no financial impact on the company to date, with specific settlement details remaining confidential in line with contractual agreements.
The tunnelling scope formed part of a broader infrastructure package covering more than 28 kilometres of underground development, including dedicated corridors for high-speed passenger and freight rail to enhance mobility within Neom.
Excavated materials from the project were planned for reuse in construction processes, supporting sustainability and resource efficiency across the development.
At the time of the contract award, then-CEO Nadhmi Al-Nasr highlighted the scale and technical sophistication of the tunnelling works as a reflection of the project’s ambition.
Neom, the $500 billion future-focused urban development backed by the Public Investment Fund (PIF), continues to play a central role in Crown Prince Mohammed bin Salman’s Vision 2030 strategy to diversify the economy and drive foreign direct investment.
