Saudi Prince's $500 Billion Neom Megaproject Wins Over Wall Street Investors

Saudi Prince’s US$500 Billion ‘Neom’ Megaproject Woos Wall Street

The Saudi crown prince’s ambitious "Neom" megaproject has invited bankers and investors to a meeting in New York next month as part of its efforts to drum up international interest in the US$500 billion plan to build a high-tech hub from scratch.

The Invitation

Executives from Neom, including chief executive Nadhmi Al-Nasr and finance sector head Layth Al-Shaiban, are scheduled to attend the event in early April. Invitations were sent to private equity firms, bankers, and construction suppliers for the gathering, which aims to gauge interest in the project.

The invitation, according to a copy seen by Bloomberg, reads: "Explore and discuss the significant market opportunities Neom represents and discuss how we can support your business plans through meaningful partnership and investment opportunities."

Neom’s Vision

Announced in 2017, Neom is the crown jewel of Crown Prince Mohammed bin Salman’s program to overhaul the economy of the world’s largest oil exporter. The project aims to turn the remote region on the kingdom’s northwest Red Sea coast into a high-tech hub filled with robots.

The plans encapsulate the major elements of his so-called "Vision 2030" to diversify away from crude, loosen social restrictions, and boost investment. The project has stirred some controversy among Saudis, including a relocation process for local residents that devolved into violence and arrests in 2020.

Feasibility Concerns

Foreign academics and experts have questioned Neom’s feasibility after previous efforts to build economic and financial free zones struggled to take off. However, the project has hired more than a thousand employees to move to the remote site and plan the new region’s economy and urban design.

Previous Controversies

The effort to woo Wall Street comes more than three years after the murder of government critic Jamal Khashoggi by Saudi agents in Istanbul damaged the kingdom’s reputation abroad. Several prominent figures left Neom’s advisory board after the killing, and a crackdown on dissent in Saudi Arabia unsettled global firms and drew international criticism.

However, many bankers and other international companies have returned to work in Saudi Arabia since then. The project has also hired executives from Buro Happold, General Electric, and Germany’s RWE to help plan the new region’s economy and urban design.

The Plans

Neom’s unique vision of urban design includes plans for a car-free linear city, an industrial development that floats on the Red Sea, and a mountain ski resort with an artificial lake – all powered by renewable energy. However, progress so far is mostly limited to earthworks.

The project aims to create a new economic and financial hub in Saudi Arabia, attracting businesses and investors from around the world. The efforts to woo Wall Street come as part of the kingdom’s broader strategy to diversify its economy and reduce its dependence on oil exports.

Conclusion

The Neom megaproject is an ambitious effort by the Saudi crown prince to create a new economic and financial hub in the kingdom. While the project has stirred controversy among Saudis and raised concerns about its feasibility, it also represents a significant opportunity for international investors and businesses looking to tap into the growing market in Saudi Arabia.

As the project continues to move forward, it will be interesting to see how it addresses the concerns of critics and whether it can deliver on its ambitious plans. With a projected budget of US$500 billion, Neom has the potential to become one of the largest economic development projects in history.

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