NEOM, Saudi Arabia’s futuristic mega-city project, has successfully closed a significant export credit agency (ECA) financing deal worth $3 billion. This landmark transaction, made possible through Italy’s SACE and a consortium of nine major international banks, will support NEOM’s ambitious developments across multiple sectors. The agreement marks NEOM’s first corporate ECA financing and is the largest united financing ever guaranteed by SACE, setting the stage for accelerated progress in one of the world’s most visionary urban projects.
The Financing Agreement
NEOM’s financing deal is backed by a syndicate of prominent global financial institutions, including HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan, and Bank of America. The financing is structured as a long-term, multicurrency united facility, which will provide crucial support for various projects across NEOM.
The agreement will help fund key infrastructure, urban development, and transport initiatives within NEOM, including rail, road, and maritime projects. Additionally, the deal strengthens NEOM’s partnership with Italian businesses, especially small and medium enterprises (SMEs), which are poised to supply goods and services critical to the development of the city. These partnerships are expected to play an essential role in the advancement of NEOM’s ambitious plans.
Strategic Importance of Italian Involvement
Italian suppliers and contractors have already been involved in NEOM, with existing contracts worth SR6.3 billion ($1.7 billion). The new financing agreement builds on these existing relationships, further integrating Italian expertise and resources into the development of the mega-project. This collaboration is expected to drive growth for Italian SMEs, particularly in sectors such as construction, transport, and infrastructure.
Alessandra Ricci, Chief Executive of SACE, highlighted the strategic importance of the partnership, noting that opening new routes for “Made in Italy” products is essential for driving long-term growth in Italian exports. Through this deal, NEOM offers significant opportunities for Italian businesses to expand their footprint in the Middle East, benefiting from the project’s immense scale and global visibility.
NEOM’s Vision and Long-Term Goals
Eng. Aiman Al Mudaifer, acting CEO of NEOM, expressed his enthusiasm about the deal, noting that it reflects the strong confidence global financial institutions have in the project. He emphasized that the financing would play a pivotal role in helping NEOM achieve its significant development goals. “This deal will support us in delivering our significant portfolio of developments and reflects the strong confidence that leading financial institutions worldwide place in NEOM. It advances the Kingdom’s aim of generating capital investment in line with Saudi Vision 2030,” he said.
Al Mudaifer also underscored the importance of foreign investment in diversifying Saudi Arabia’s economy. He stated that the partnership with SACE and the international banking consortium strengthens NEOM’s ability to attract further investment and create lasting international trade ties.
Impact on Saudi Vision 2030
This massive financing deal aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce its reliance on oil exports. NEOM is a central part of this vision, intended to serve as a cutting-edge hub for innovation, sustainability, and technological advancement. The financing agreement not only supports the development of NEOM but also contributes to the overall growth and diversification of the Saudi economy, driving long-term capital investment and creating new business opportunities across sectors.
SACE’s Ricci expressed her company’s commitment to fostering opportunities for Italian businesses, saying: “Opening new routes to ‘Made in Italy’ is a priority to allow long-term growth for Italian exports, matching their potential. Our Riyadh office supports Italian companies and their potential partners and counterparties by providing experience and insurance financial solutions combined with the added value of a physical presence in the area.”
The $3 billion financing secured by NEOM represents a significant step forward in the development of the mega-city and further solidifies its position as a key player in the global economy. The partnership with international financial institutions, particularly the involvement of Italian SMEs, is expected to strengthen the project’s development across various sectors. As NEOM continues to progress, this deal ensures that it has the financial backing to turn its groundbreaking vision into a reality.