In an ongoing saga that has significant implications for Saudi Arabias ambitions to modernize its economy, Roula Khalaf, the editor of the Financial Times, highlights a critical issue involving Roshn, the state-backed property giant. The company is currently embroiled in a legal dispute with its former chief executive, David Grover, who is pursuing a lawsuit claiming wrongful dismissal and seeking over $120 million in compensation.

The conflict stems from Grover's termination in April 2024, just a few years after he was appointed to lead Roshn, following his recruitment by the Public Investment Fund (PIF) in 2020. Grover, a seasoned professional with more than four decades of experience in the UK construction sector, has made a settlement offer of less than $50 million in February, which has remained unanswered by Roshn, leaving him frustrated and questioning the companys commitment to resolving the matter.

Roshn, which is one of five flagship gigaprojects under the auspices of Crown Prince Mohammed bin Salmans ambitious Vision 2030, is expected to provide housing for 2.2 million people, among other responsibilities. However, the company's ongoing legal turmoil is raising alarms about its ability to attract and retain top international talent, a key component for the success of such expansive projects.

This issue is being viewed as a benchmark for Saudi Arabia's legal reforms, particularly regarding the treatment of foreign nationals and the kingdom's transparency in business dealings. Observers note that the considerable sum of money involved in Grovers lawsuit has attracted heightened scrutiny, as many worry that a public legal battle could deter other high-profile executives from taking up positions in the kingdom.

Despite receiving billions in funding from the PIF, which serves as a cornerstone for many of these ambitious developments, critics contend that Roshn and other projects continue to struggle with inherent structural issues, including inadequate legal protections for employees. Notably, two of the five gigaprojects currently have acting chief executives, highlighting potential instability within leadership roles.

As the situation stands, Grovers case is set to be heard by Saudi Arabias supreme labor court following rejections by two lower courts, yet the trial date has been postponed multiple times, leaving many in limbo. The arguments surrounding Grover's dismissal highlight the complexities of corporate governance in Saudi Arabia, especially concerning the nuances of property rental arrangements that Grover engaged in to accommodate company employees attending industry conferences.

Roshn has asserted that Grover's rental of his own properties in the south of France to company personnel was done without proper authorization from the human resources department, despite claims from Grovers camp that HR was fully informed and supportive of the arrangements. In their defense, Roshn has alleged that Grover failed to disclose his ownership of the French properties, which Grover vehemently denies.

The ongoing turmoil has also led to changes within Roshns human resources department. Recently, Sultan AlHunaiti was appointed as the head of HR, replacing Nasreen Aldossary, whose previous contributions were notably absent from the announcement. This internal shift comes amidst a backdrop of uncertainty regarding Roshn's operational governance and its strategy moving forward in the wake of Grover's departure.

As Saudi Arabia strives to realize the ambitious goals set forth in Vision 2030, the legal struggles of Roshn and its leadership dynamics serve as a crucial reminder of the challenges the kingdom must overcome to reshape its economic landscape and attract global talent.