NEOM, a subsidiary of Saudi Arabia's sovereign wealth fund, has announced the acquisition of a new revolving credit facility (RCF) worth 10 billion riyals ($2.67 billion) from local banks, according to a report by Reuters.
NEOM Secures New Financing Facility
According to NEOM's statement, Saudi National Bank, Riyad Bank, and Saudi Awwal Bank arranged the financing arrangement with assistance from other banks, including Al Rajhi Bank, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank, and Bank AlJazira.
This new credit facility is intended to bolster NEOM's short-term financing needs and support its ongoing development of significant projects.
NEOM, a futuristic city project in Saudi Arabia, is a central component of the kingdom's Vision 2030 strategy, which aims to diversify the economy away from oil dependence.
The city aims to become a hub for innovation, technology, and sustainable living, encompassing various sectors, including energy, biotechnology, entertainment, and tourism.
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Saudi Arabia's Futuristic City
Developing luxury resorts like Sindalah may also help Saudi Arabia attract tourists sooner by starting small. Sindalah is one of the more plausible components of Neom's future goals. It pales compared to The Line, a mirrored "horizontal skyscraper."
According to recent reports, Saudis may face a harsh reality when financing some megaprojects featured in Saudi Crown Prince Mohammed bin Salman's Vision 2030 initiative.
Previous deadlines have been pushed back for several of Neom's more ambitious initiatives.
Bloomberg reported earlier this month that the Gulf Kingdom had lowered its predictions of the number of people who would reside in The Line.
According to the article, some of the trillion-dollar investments contained in the Vision 2030 initiative are beginning to raise concerns at the highest levels of the country's leadership.
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