NEOM seals SAR 10B credit facility deal

Logo of NEOM

NEOM announced the signing of a SAR 10 billion credit facility, which will be used for its short-term financing requirements as development powers ahead.

The credit facility, which is based on the Murabaha structure, aims to support the progress of work in the main projects namely The Line, Oxagon, Trojena and Sindalah, Saudi Press Agency reported.

“As NEOM continues to gather pace, this new credit facility, backed by Saudi Arabia’s leading financial institutions, is a natural fit within our wider strategy for funding. We continue to explore a variety of funding sources as we deliver transformational infrastructure assets while supporting the wider Vision 2030 program,” said Nadhmi Al-Nasr, CEO, NEOM.

“NEOM is among the largest projects in the world today, and we value the partnership we have with our relationship banks in facilitating access to a range of flexible financing options as we deliver on our ambition,” he added.

In 2023, NEOM and its partners sealed a financing agreement worth SAR 23 billion to establish NEOM Green Hydrogen Company. It also signed an agreement worth SAR 3 billion to partially finance Sindalah Island, the luxury island destination set to welcome visitors this year. 

The facilities were secured from Saudi National Bank (SNB), Riyad Bank, Saudi Awwal Bank (SAB), Al Rajhi Bank, Alinma Bank, Arab National Bank (ANB), Bank Albilad, The Saudi Investment Bank (SAIB) and Bank AlJazira.

These facilities come with the aim of supporting NEOM project's short-term financing requirements.