$500 billion flagship project NEOM to list in 2024: Saudi Crown Prince
Saudi Arabia’s Crown Prince Mohammed Bin Salman said that his $500 billion flagship project NEOM, a huge economic zone eventually meant to house nine million people, will be partly financed through a flotation expected in 2024.
The city’s first phase is set to cost 1.2 trillion riyals ($319 billion), half of which will come from the kingdom’s sovereign wealth fund, the Public Investment Fund, he said.
The crown prince was speaking to reporters, architects, investors and others a tending a presentation that provided updates on The Line project, a key part of the NEOM development.
Saudi Arabia will tap sovereign wealth funds in the region and globally in the fourth quarter of this year to raise part of the remaining 600 billion riyals, which will also be funded through private sector investment and an initial public offering (IPO) that is expected to take place in 2024, he said.
Saudi Arabia will also allocate 300 billion riyals for a fund linked to NEOM, which will invest in companies that set up there.
The crown prince announced plans for NEOM in 2017 as part of his Vision 2030 reform plan, which aims to diversify Saudi Arabia’s economy away from oil.
The kingdom’s sovereign wealth fund is the cornerstone investor in NEOM, a 26,500-square km (10,230-square-mile) high-tech development on the Red Sea with several zones, including industrial and logistics areas.
NEOM is expected to have capacity for 450,000 people by 2026 and 1.5-2 million people by 2030, eventually housing nine million by 2045, the crown prince said. The interim goal would make the city bigger than Abu Dhabi, he said.
Asked why the development was needed, he said it was central to Saudi Arabia’s ambitious population-growth goals and its ability to compete globally.
“NEOM will add a trillion riyals to the Saudi stock market value. At least 1.2 trillion in the beginning and the overall will increase ater project completion to exceed 5 trillion,” he was quoted as saying on state-owned al-ekhbariya TV.
At the presentation for The Line, he said Saudi Arabia aimed for its stock exchange to be among the three biggest in the world.
Middle East and North Africa issuers - mostly in the Gulf - raised over $13.5 billion via IPOS in the first half of this year, the bulk in Saudi Arabia, Refinitiv data showed.
The Line is envisioned as a 200-metre-wide series of“modules” for different urban uses sandwichedbetween two 500- met re-high ,170- km-long mirrored exterior facades that cut through a vast array of desert and mountains. There will be hanging pathways, gardens and even a stadium.
Aiming to run on 100% renewable energy, the relatively compact design is meant to cut waste and minimise environmental impact. Its location has the “perfect” conditions to harness wind energy as well as solar power, the crown prince said.
Saudi Arabia, the world’s biggest crude exporter, aims to reach “net zero” greenhouse gas emissions by 2060.
The crown prince touted NEOM as a new way of urban living, doing away with cars and allowing residents to feel more connected to nature.
“If you have money”, he said, you should “raise the bar” and create something innovative and different.
“Since we are doing it from nothing, why should we copy normal cities?” he added.
“I believe it’s going to be the best liveable area - by far - in the whole planet.”
Meanwhile, Bindawood Holding Co., through its wholly owned subsidiary, Future Technology Retail (“FTR”), a technology and retail solutions investment company, announces it has entered into exclusive negotiations for the potential acquisition of a majority stake in Ykone, a subsidiary of TF1 group, a French leader in content production, publishing and distribution. The potential transaction will be undertaken through a French subsidiary company to be incorporated by FTR.
Ykone is a profitable international influencer marketing agency, with a proprietary technology offering, focused on travel, beauty, fashion and luxury brands, with a presence in Europe, Asia, the US and the Middle East. It provides end to end services on strategy, talent management, content production and monitoring to more than 200 leading brands across the globe including the MENA region.
Bindawood Holding is one of the leading grocery retail operators of hypermarkets and supermarkets in the KSA. The Company has a total of 78 stores of which 52 are hypermarkets and 26 are supermarkets, each located strategically across KSA, operating two complementary brands: Bindawood and Danube.
Future Technology Retail (Future Retail for Information Technology Company) is a wholly owned subsidiary of Bindawood Holding, one of the leading grocery retail operators in in the Kingdom of Saudi Arabia.
Project to have capacity to house nine million by 2045, the city’s first phase is set to cost $319b half of which will come from the kingdom’s sovereign wealth fund