In a strategic move to secure additional funding, Neom, the ambitious urban development in Saudi Arabia, has opened its doors to hundreds of potential investors, providing them with a firsthand glimpse of the city’s progress. This initiative represents a significant step in the country’s efforts to draw in more capital for the high-profile project.
During this unprecedented event, guests, including private bankers, will witness the ongoing development of ‘The Line,’ a centerpiece of the Neom city plan characterized by its innovative design featuring two parallel skyscrapers. This marks the first occasion where such a large cohort of financial experts will have the opportunity to physically tour the site rather than relying on digital projections.
Attendees are also expected to explore notable regions within Neom, such as the leisure destination Sindalah and the industrial zone Oxagon, culminating their visit with departures on chartered flights.
The Neom project, valued at an estimated $500 billion and initiated in 2017, is integral to Saudi Arabia’s Vision 2030, which aims to diversify the nation’s economic reliance away from oil. Despite its central role in this vision, the futuristic city has encountered several stumbling blocks, including skepticism from the Saudi government regarding the escalating costs.
Further adding to the financial scrutiny, the Saudi sovereign wealth fund has yet to approve the budget for Neom for the year 2024. Adjustments have also been made to the expected population of The Line, with current projections set at 300,000 residents by 2030, a decrease from the initial estimate of 1.5 million.
In an attempt to boost its financial standing, Neom is reportedly preparing to issue its inaugural bonds, aiming to raise as much as $1.3 billion. Additionally, the development’s representatives have sought international interest, presenting the project to financiers in China, among other global economic powerhouses, though no formal agreements have been disclosed.