Neom is a major component of the broader Neom project in Saudi Arabia, which is being led by Crown Prince Mohammed bin Salman as part of Vision 2030. The project aims to issue its first bonds, with the potential to raise up to $1.3 billion in funding for its development.
The Neom project, which has an estimated cost of $500 billion, is looking to sell Islamic bonds, also known as sukuk, to finance its ambitions. This move aligns with Saudi Arabia’s efforts to diversify its economy away from oil and into other sectors, including technology.
At the heart of the Neom project is The Line, a futuristic city within mirrored skyscrapers that aims to be sustainable and emissions-free. Other elements of the project include a sustainable port on the Red Sea, a ski and adventure resort, and a luxury island called Sindalha.
Despite most of the funding coming from Saudi Arabia’s sovereign wealth fund PIF, there are concerns about rising costs and the need for additional funding to fully realize the vision of Vision 2030. As a result, the project has started borrowing to finance its development, reflecting the challenges of executing such large-scale projects.