Arcadis’ departure from the Middle East amid payment and safety concerns serves as a critical focal point for the engineering sector.
- CEO Alan Brookes cites payment issues and lack of compliance with safety standards as major reasons for Arcadis’ exit.
- Neom project, a significant civil engineering endeavour, remains controversial due to ethical and safety concerns.
- Statements from former officials revealed extreme measures to ensure Neom’s development.
- Major firms linked to Neom have not commented on Arcadis’ withdrawal despite financial and ethical controversies.
Arcadis has announced its decision to exit the Middle East, with CEO Alan Brookes explaining that the move was primarily driven by payment difficulties and client non-compliance with health and safety standards. This development highlights the challenges faced by civil engineering companies operating in the region.
In his interview with New Civil Engineer, Brookes disclosed that the decision was made to conclude all Middle Eastern projects by the year’s end, citing cash flow problems as a fundamental issue. “You just don’t get paid,” Brookes candidly stated, pinpointing a lack of financial reliability as a key factor behind the withdrawal of Arcadis from the region.
The announcement comes against a backdrop of ongoing controversy surrounding the Neom gigaproject in Saudi Arabia. Neom, which is one of the largest civil engineering projects globally, has faced significant scrutiny. Reports of official orders authorising lethal force against civilians resisting the project’s progression have surfaced, exacerbating ethical concerns.
A former Saudi intelligence officer revealed that directives were given to eliminate opposition in al-Khuraybah village, mainly populated by the Huwaitat tribe. These revelations underscore the contentious environment in which Neom operates, with human rights issues further complicating its execution.
Despite the controversies, firms such as Jacobs, Aecom, and Bechtel, among others, have maintained roles in the project. Nevertheless, these companies, linked with Neom through substantial contracts, have not provided statements regarding their positions on both the ethical issues and Arcadis’ strategic exit.
Arcadis had previously been connected with Neom through its management role in the Red Sea project. However, Brookes clarified that a strategic decision was made years ago to complete ongoing projects and withdraw entirely from the region. He emphasised the firm’s commitment to health and safety protocols, which were not consistently honoured by clients, reinforcing the rationale for Arcadis’ departure.
The silence from other major civil engineering firms involved with Neom has been particularly noticeable amidst persistent rumours about financial and ethical challenges within the project. Many of these companies are understood to have their employees sign non-disclosure agreements, adding a layer of opacity to an already complex situation.
The withdrawal of Arcadis spotlights significant ethical and operational challenges within Middle Eastern civil engineering projects.
