Additional Coverage:
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited. (newsbreak.com)
### Saudi Arabia Promotes Neom Megacity in China Amid Investment Quest
Saudi Arabia has taken significant steps to introduce its ambitious Neom megacity project to a Chinese audience, targeting investors in key financial hubs across China. The promotional tour, which included stops in Beijing, Shanghai, and Hong Kong, aimed to illuminate the scope and vision of the Neom project, although it did not directly result in any announced investment deals.
The initiative comes in the wake of skepticism regarding the project’s scale-down, from an initially projected population of 1.5 million to now less than 300,000 residents. Despite these adjustments, Neom’s executive leadership remains optimistic, reaffirming their commitment to meeting the project’s strategic objectives.
Financial challenges have also surfaced as part of Saudi Arabia’s broader Vision 2030 plan, led by Crown Prince Mohammed bin Salman. The extensive blueprint for the country’s future has prompted the Saudi government to explore borrowing options to finance Neom and other significant initiatives. In a move to bolster its funding strategies, Neom is set to issue its debut bonds, potentially raising up to $1.3 billion through the sale of Islamic bonds known as sukuk.
The international roadshow is part of a broader effort to engage global investors and partners in the development of Neom, a centerpiece of Saudi Arabia’s transformational Vision 2030 strategy. As the search for investment continues, the pitch to China’s financial circles marks a pivotal attempt to demystify the project and garner backing amidst a cautious economic outlook.