NEOM representatives traveled to Beijing, Shanghai and Hong Kong, with the aim of attracting Chinese investors and providing clarification on this still very mysterious project. These visits come at a time when the financial aspects and the scale of the project are starting to seriously frighten the financiers. No agreement was reached during these visits, which also helped to somewhat demystify NEOM.
A tour of China to seduce
At a reception, reactions to the project were “ mostly neutral ”, according to Leonard Chan, president of the Hong Kong Innovative Technology Development Association. The latter expressed moderate interest in the project, comparing it to an experience “ like in SimCity », while admitting that he would visit it for pleasure without considering living there.
NEOM’s project, which includes the construction of The Line, a 170-kilometer futuristic city, as well as other developments such as Oxagon, Trojena and the luxury island Sindalah, arouses both admiration and concern. Bloomberg reported last month that population projections for The Line had been reduced from 1.5 million residents by 2030… to less than 300,000. Despite these reductions, Tarek Qaddumi, executive director of NEOM, maintains that the population target of 9 million will be reached in due time.
The financing of this colossal project, estimated at $500 billion, began to raise concerns within the Saudi government. The country has also reportedly started borrowing to finance NEOM and other “megaprojects” of Crown Prince Mohammed bin Salman’s Vision 2030.
Additionally, NEOM plans to issue bonds for the first time, seeking to raise up to $1.3 billion by selling Islamic bonds, or sukuk, reports Bloomberg citing anonymous sources. This marks a significant step in the search for external financing to ensure the continuity of the project.
The China presentation was held in partnership with the China Council for the Promotion of International Trade in Beijing and Shanghai, where NEOM’s progress and achievements were highlighted. “ These events highlighted opportunities for Chinese companies to engage and invest in NEOM ”, according to an update on the project website which also mentions the commitment of more than 15 major Chinese companies and investment in several startups in the country.
However, the project is not limited to China: its “global roadshow” has also landed in international markets such as Seoul, Tokyo, Singapore, and even major American and European cities.
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