Total amount raised
$5.7 Billion
Latest funding date
1/1/2025
Location
NEOM has successfully navigated three funding rounds, attracting investments from prominent entities like Citi and Bank of China. The futuristic region in northwest Saudi Arabia is committed to sustainability, innovation, and livability, making it a unique investment opportunity.
Keep reading to explore the intricacies of NEOM's fundraising journey and the investors backing this ambitious project.
What Is NEOM?
NEOM is a groundbreaking project located in northwest Saudi Arabia, designed to support economic diversification and deliver innovative urban solutions. The region is powered by renewable energy and aims to redefine business, livability, and conservation.
Founded as a government administration firm, NEOM is based in Riyadh, Ar Riyad, Saudi Arabia, and employs between 1001 and 5000 people. The project encompasses various sectors, including biotech, energy, and technology, and features regions like Oxagon and THE LINE.
NEOM's mission is to create a sustainable and innovative environment, making it a unique and ambitious endeavor in the global landscape.
How Much Funding Has NEOM Raised?
- Amount Raised: USD 6,100,000,000
- Date: May 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the development of NEOM's infrastructure and urban projects.
- Amount Raised: USD 2,666,666,667 (approx. conversion from SAR 10,000,000,000)
- Date: April 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand NEOM's infrastructure and technological advancements.
- Amount Raised: USD 3,000,000,000
- Date: January 2025
- Lead Investors: HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan, Bank of America
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support various projects across NEOM, leveraging supplies from Italian businesses, particularly SMEs, to support the project’s development across key sectors such as infrastructure, urban development, construction, and transport.
Total Amount Raised: USD 11,766,666,667
Current Valuation: Not publicly disclosed
Key Investors
- Citi
- Details: Citi is a major American multinational investment bank and financial services corporation headquartered in New York City. It operates in more than 160 countries and jurisdictions.
- Investment Focus Areas: Financial services, investment banking, wealth management
- Notable Investments: NEOM, Uber, Airbnb
- Bank of China
- Details: Bank of China is one of the largest state-owned commercial banks in China. It provides a comprehensive range of financial services to customers across the globe.
- Investment Focus Areas: Banking, financial services, international trade
- Notable Investments: NEOM, Alibaba, Tencent
- HSBC
- Details: HSBC is a British multinational investment bank and financial services holding company. It is one of the largest banking and financial services organizations in the world.
- Investment Focus Areas: Banking, wealth management, commercial banking
- Notable Investments: NEOM, Ping An Insurance, Saudi British Bank
- J.P. Morgan
- Details: J.P. Morgan is an American multinational investment bank and financial services holding company. It is a leader in investment banking, financial services, and asset management.
- Investment Focus Areas: Investment banking, asset management, private banking
- Notable Investments: NEOM, Amazon, Facebook
- Crédit Agricole CIB
- Details: Crédit Agricole CIB is the corporate and investment banking arm of Crédit Agricole Group. It offers a wide range of financial products and services to corporate and institutional clients.
- Investment Focus Areas: Corporate banking, investment banking, structured finance
- Notable Investments: NEOM, TotalEnergies, Airbus
What's Next for NEOM?
NEOM's future is brimming with opportunities, particularly in infrastructure, urban development, construction, and transport. With a recent USD 3 billion financing secured under a multicurrency untied facility guaranteed by Italy’s SACE, NEOM is poised to leverage Italian businesses, especially SMEs, to support its ambitious projects. This financing not only diversifies NEOM’s funding pool but also strengthens international business relationships, crucial for the project's long-term success.
Future fundraising efforts are likely to focus on further expanding NEOM's financial base, potentially involving more international banks and export credit agencies. This diversified approach will be essential as NEOM continues to develop its major projects and regions. However, challenges such as ensuring alignment with Saudi Vision 2030, managing international collaborations, and efficiently utilizing secured funds will need to be navigated carefully to maintain momentum and achieve the project's ambitious goals.
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