Construction has begun on NEOM, an economic zone in northern Saudi Arabia that aims to diversify the economy of the world’s largest oil exporter.
In an interview with a number of journalists, the Saudi Crown Prince said, after the announcement of The Line’s designs yesterday evening, “NEOM will add a trillion riyals (about 266 billion dollars) to the size of the Saudi stock market. At least 1.2 trillion at the beginning and the total will increase after the completion of the project above 5 trillion.”
The Saudi Crown Prince, Prince Mohammed bin Salman, stated that the government support in NEOM will be worth 200 to 300 billion riyals, indicating that the government support differs from the investment of the Public Investment Fund, which will amount to about 600 billion riyals.
Regarding the investment of the Public Investment Fund in the NEOM project with 600 billion dollars, he said, “The 600 billion comes from sovereign funds, the public offering, and the global private sector, and this is the last challenge that we will overcome during the next two years.”
And the Public Investment Fund, the sovereign wealth fund in the Kingdom, is the strategic investor in NEOM, which is a project on an area of 26,500 square kilometers for advanced technology on the Red Sea, and includes a few areas, including industrial and logistical areas, and construction is expected to be completed in 2025.
The Saudi crown prince added that all public investment fund companies will be listed on the stock market by 2024.
He stated that the government will raise capital of about 500 billion riyals in 2027 and resort to the market to raise another 200-300 billion riyals for the NEOM project.
“We have big goals to make Saudi Arabia among the top 3 stock markets on the planet,” he said.
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