Saudi Arabia’s ambitious plan to diversify its oil-dependent economy got a huge boost this week with a multibillion-dollar investment into Neom, a massive development underway on the coast of the Red Sea.
The $5.6B commitment will pay for temporary housing and facilities for 95,000 people, according to BNN Bloomberg. Neom was originally seeded with $500B from the kingdom’s Public Investment Fund, but in recent weeks it has attracted a series of monetary pitches from local and international investors.
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Riyad Bank funneled about $800M toward the development of an island tourism resort called Sindalah, per BNN Bloomberg, and a group of international and regional banks has contributed $8.4B to pay for the construction of one of the world’s largest green hydrogen plants.
Neom is promised to be powered entirely by sustainable energy and operated as a smart city.
Crown Prince Mohammed bin Salman is spearheading several economic transformation projects across the kingdom. Earlier this year, he launched a company to kick-start the New Murabba project in downtown Riyadh, which is expected to add $48B to nonoil gross domestic product and create 334,000 jobs.
Billed as “the world’s largest modern downtown,” New Murabba will cover 19 square kilometers and include more than 270M SF of residential, hotel, retail, office and leisure space. It is expected to be complete by 2030.
Construction on Neom is underway, according to the project’s website, with the first destinations slated to debut in 2024. About 1 million people will live in the city by 2030, with population growth expected to top 9 million by 2045, per the website.
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