Webuild says NEOM terminates connector high-speed line contract in Saudi Arabia

Published by Global Banking & Finance Review

Posted on May 21, 2026

2 min read

· Last updated: May 21, 2026

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Quick Summary

Webuild confirmed that NEOM has terminated the Connector high‑speed line contract, effective May 27. The project was ~20% complete and leaves Webuild with about €1 billion in backlog, with NEOM reimbursing incurred costs.

Table of Contents

Contract Termination Details and Implications

Overview of the Termination

Webuild’s Response and Financial Impact

Company Backlog and Previous Contract Terminations

NEOM’s Significance and Webuild’s Regional Exposure

Currency Exchange Rate

Reporting Credits

NEOM Terminates Webuild’s €1 Billion High-Speed Line Contract in Saudi Arabia

Contract Termination Details and Implications

Overview of the Termination

May 21 (Reuters) - Saudi Arabia's high-tech NEOM has terminated Webuild's contract for the Connector High-Speed Line project in Tabuk, Italy's largest construction company said on Thursday.

The termination will become effective on May 27. The works are around 20% complete, with a remaining project backlog for Webuild of around 1 billion euros ($1.16 billion).

Webuild’s Response and Financial Impact

• Webuild said the project's termination concludes all of the company's work with NEOM.

• The Milan-based company said that NEOM will reimburse Webuild for all costs incurred up to the termination date, including costs related to site disengagement and demobilization.

Company Backlog and Previous Contract Terminations

• Despite the setback, the company said it maintains a construction backlog exceeding 50 billion euros.

• NEOM in March had terminated Webuild's contract for a system of three dams, with a project backlog of 2.8 billion euros.

NEOM’s Significance and Webuild’s Regional Exposure

• NEOM is a $500 billion mega-project central to Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan to overhaul the kingdom's economy

• Webuild had earlier said its exposure to the Middle East was limited to about 5% of its backlog.

Currency Exchange Rate

($1 = 0.8604 euros)

Reporting Credits

(Reporting by Chandni Shah in Bengaluru; Editing by Shailesh Kuber)

Key Takeaways

NEOM’s termination of the Connector high‑speed rail contract will take effect on May 27; the works were roughly 20% complete, leaving about €1 billion ($1.16 billion) in backlog for Webuild.

Similar to March’s cancellation of the €2.8 billion Trojena dams project, NEOM will reimburse all costs through termination—including demobilization—keeping Webuild financially insulated and underscoring NEOM’s strategic project reshuffles under Vision 2030.

Despite these setbacks, Webuild continues to benefit from a strong construction backlog exceeding €50 billion, reinforcing its resilience amid mega‑project volatility.

Frequently Asked Questions

Why did NEOM terminate Webuild's Connector High-Speed Line contract?The reason for NEOM's termination of the Connector High-Speed Line contract with Webuild was not disclosed in the article.

What percentage of the Connector High-Speed Line project was completed by Webuild?Webuild had completed around 20% of the Connector High-Speed Line project at the time of termination.

How much of a project backlog remains for Webuild after termination?There was a remaining project backlog of around 1 billion euros for Webuild when the contract was terminated.

Will Webuild be reimbursed after the contract termination?Yes, NEOM will reimburse Webuild for all costs incurred up to the termination date, including those related to site disengagement and demobilization.

How significant is Webuild’s exposure to the Middle East?Webuild's exposure to the Middle East is limited to about 5% of its construction backlog.