Saudi Arabia's NEOM seeks
$2.7 billion loan to propel ambitious megaproject
NEOM, the pioneering
company behind Crown Prince Mohammed bin Salman's flagship megaproject in Saudi
Arabia, is reportedly in pursuit of a substantial loan amounting to 10 billion
riyals ($2.7 billion).
According to a report,
NEOM, a subsidiary of the kingdom's sovereign wealth fund, is in discussions
with a group of predominantly local lenders to secure financing for the initial
phases of the groundbreaking $500 billion project. The loan negotiations are
underway, and if successful, the financing could be finalized in the coming
months.
Additionally, NEOM is
planning to raise up to 3 billion riyals from local banks to support the development
of Shushah Island, a luxury tourism project.
NEOM, driven by the
vision of the Crown Prince, represents a monumental endeavor in Saudi Arabia's
ongoing efforts to diversify its economy, which has long relied heavily on oil
revenue. The city aims to revolutionize the country's economic landscape while
acting as a fertile ground for testing and implementing groundbreaking
technologies that could reshape everyday life.
In recent times, NEOM
has secured several significant investment deals to bolster its ambitious
project. Just last month, the company finalized a partnership agreement valued
at over 21 billion riyals with a consortium of local investors. The deal aims
to construct temporary housing and facilities for 95,000 individuals under a
public-private partnership arrangement. Additionally, NEOM inked a 3 billion
riyal loan deal with Riyad Bank, dedicated to financing the development of
Sindalah, an alluring island-based tourism resort.
The journey of NEOM
reflects Saudi Arabia's unwavering commitment to ushering in a new era of
economic diversification and technological innovation. As the megaproject
continues to garner support and financing, it moves closer to its ambitious
goal of reshaping the future of the region and beyond.
Source: https://www.mepmiddleeast.com
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