Neom's board of directors announced on Tuesday the appointment of Aiman Al-Mudaifer as acting CEO of the company following the unexpected departure of Nadhmi Al-Nasr, who was put in charge of the project in 2018.

Saudi Arabia replaced the executive that was overseeing its plan to build the $1.5 trillion futuristic development known as Neom, in the latest sign that the project is struggling to deliver on its ambitions.

The futuristic city is central to Crown Prince Mohammed bin Salman's plan to create new engines of economic growth beyond oil. But some of the schemes have had to be scaled back due to rising costs.