Saudi Arabia’s mega-project NEOM recently announced that it has secured a new revolving credit facility worth SAR10 billion ($2.67 billion). The financing will boost its ongoing development endeavors and short-term financing requirements. This financial milestone underscores NEOM’s proactive approach to sourcing diverse funding avenues as it progresses with its monumental infrastructure projects. This new revolving credit facility follows a Murabaha structure which reflects NEOM’s strategy to diversify its sources of funding.
Commenting on the achievement, NEOM’s CEO Nadhmi Al-Nasr explained that as the mega-project progresses, this financing fits the project’s wider strategy for funding. Al-Nasr reiterated the importance of Saudi Arabia’s leading financial institutions and their support of the project. Moreover, Al-Nasr stated that the mega-project continues to explore different funding sources as it delivers transformational infrastructure assets in line with Vision 2030.
“NEOM is among the largest projects in the world today, and we value the partnership we have with our relationship banks in facilitating access to a range of flexible financing options as we deliver on our ambition,” he added.
The new funding adds to the mega-project’s growing portfolio of funding arrangements. This includes the recent SAR23 billion agreement for the NEOM Green Hydrogen Company and last year’s SAR3 billion debt financing for the development of Sindalah, a luxury island destination within NEOM. These initiatives highlight NEOM’s commitment to driving sustainable economic growth and innovation.
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The facility attracted strong interest, with nine banks participating. Key participants included prominent Saudi financial institutions such as Saudi National Bank, Riyad Bank, and Saudi Awwal Bank, among others. Their involvement reaffirms NEOM’s position as a key player in Saudi Arabia’s economic transformation.
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