Nadhmi al-Nasr, the CEO of Neom, Saudi Arabia’s $500 billion megacity project, has resigned, according to a statement released by the company on Tuesday. The statement did not provide details on the reasons behind his departure. Al-Nasr, who had been at the helm of the ambitious Neom project for several years, was leading the development of a massive urban and industrial city in the northwest of the country, a centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan.

Neom, a futuristic development roughly the size of Belgium and designed to house nearly 9 million residents, is central to the kingdom’s efforts to reduce its dependency on oil by diversifying into new industries. The project is home to some of Saudi Arabia’s most high-profile plans, including “The Line,” a sprawling, futuristic city designed to run 170 kilometers across the desert. However, recent reports suggest that some aspects of the project, particularly The Line, have been scaled back due to escalating costs.

In response to al-Nasr’s departure, Aiman al-Mudaifer, head of the Local Real Estate Division of Saudi Arabia’s Public Investment Fund (PIF), has been appointed as acting CEO. Al-Mudaifer, who has extensive experience with the Neom project, is expected to lead the initiative through its next phase of development, focusing on operational efficiency and achieving the strategic goals set by the kingdom’s leadership.

The resignation comes as Saudi Arabia’s PIF evaluates its investment strategy, reportedly shifting focus toward projects that are more likely to succeed in the current global economic climate. With oil revenues under pressure due to fluctuating prices, the kingdom is adjusting its approach to ensure that large-scale projects like Neom remain on track despite the financial challenges ahead.