NEOM Closes $3 Billion Financing Facilities to Support Development of Its Projects

Oxagon, NEOM's reimagined industrial city on the Red Sea. (NEOM)
Oxagon, NEOM's reimagined industrial city on the Red Sea. (NEOM)
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NEOM Closes $3 Billion Financing Facilities to Support Development of Its Projects

Oxagon, NEOM's reimagined industrial city on the Red Sea. (NEOM)
Oxagon, NEOM's reimagined industrial city on the Red Sea. (NEOM)

NEOM secured on Monday a landmark financing agreement with Italy’s SACE, securing approximately $3 billion under a long-term multicurrency untied facility.

With this move, NEOM aims to support the development of its major projects and regions, according to a statement issued by the company.

The deal marks NEOM's first corporate export credit agency (ECA) financing and the largest untied financing ever guaranteed by SACE.

It will support various projects across NEOM and is backed by a syndicate of nine prominent international banks – HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan and Bank of America.

The partnership will enable NEOM to leverage supplies from Italian businesses, particularly SMEs, to support the project’s development across key sectors, such as infrastructure, urban development, construction and transport (rail, road and maritime).

To date, Italian suppliers and contractors have supported NEOM on a range of projects, with contracts worth $6.3 billion, and the deal aims to further strengthen and develop these important international business relationships, NEOM said in a statement.

“NEOM is committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress,” said NEOM Acting CEO Eng. Aiman Al-Mudaifer.

He said this deal advances the Kingdom's aim of generating capital investment in line with Saudi Vision 2030, with foreign investment being instrumental in diversifying the economy.

“This partnership with SACE and the consortium of leading international banks also creates strong ties with major Italian companies that will enhance international trade and investment flows,” Al-Mudaifer said.

SACE CEO Alessandra Ricci said: “We are glad to play our part alongside NEOM in this cutting-edge project, which generates opportunities in a wide range of sectors for Italian SMEs and supply chains.”

She noted that opening new routes to “Made in Italy” is a priority to allow a long-term growth for Italian exports, matching their potential.

“Our Riyadh office supports Italian companies and their potential partners and counterparties, by providing experience and insurance financial solutions combined with the added value of a physical presence in the area,” Ricci added.

Meanwhile, the SACE untied facility will expand and diversify NEOM’s existing funding pool, supporting its long-term financing requirements as NEOM moves forward in the development of major projects and regions.



Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
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Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat

A senior German official affirmed his country’s commitment to strengthening cooperation with Saudi Arabia across various fields, noting that bilateral trade relations continue to grow steadily, with trade volume reaching around 7 billion Euros.

Speaking to Asharq Al-Awsat, German Ambassador to Saudi Arabia Michael Kindsgrab said: “The sectors driving this growth—chemicals, machinery, and transport—reflect the strong industrial connections we share. These are areas where German expertise is making a real difference in Saudi Arabia’s development.”

He added: “Looking ahead, there is much to be excited about. Expo 2030 is an incredible opportunity for us to further deepen our collaboration, showcase the best of what both Saudi Arabia and Germany have to offer, and inspire future generations to continue building on this remarkable partnership.”

German Ambassador to Saudi Arabia Michael Kindsgrab - Asharq Al-Awsat

Renewable Energy

On climate cooperation, the official said: “As for climate cooperation, we have just launched a relevant study on the Saudi labor market in the renewable energy sector, which was reviewed by the National Labor Observatory and discussed with experts of KAPSARC, KaCare and PSU. This is a great example of our close and meaningful partnership, tackling the challenges of today with an eye on the future.”

Blossoming Relations

Kindsgrab noted that Saudi-German relations are truly blossoming, saying: "I am proud to see our partnership becoming deeper and stronger across so many areas. From a personal perspective, it is inspiring to witness the growing bonds between our two countries. These ties span a wide range of sectors, including energy, transport, architecture, health, education and culture—creating a solid foundation for the future.”

“One of the most exciting aspects of our cooperation is in the area of energy transition. German innovation is at the heart of NEOM’s green hydrogen projects, with Thyssenkrupp Nucera playing a key technological role in making the vision of decarbonization of industry a reality,” he affirmed.

“Beyond energy, we’re also seeing significant progress in transport, where Siemens’ delivery of metro wagons helped to shape the modern infrastructure of Saudi cities. And let’s not forget the impact of German architecture in megaprojects such as King Salman Park or the design of Expo 2030, which I believe will be a landmark event for both our countries, ” added Kindsgrab.

“In the health sector, the collaboration with Charité in Berlin is another example of how our nations are working together to improve lives.”

Accelerated Cultural Cooperation

“And now, I am particularly excited to see the acceleration of cultural cooperation, such as the recently launched museum initiative between the Saudi Museums Commission and the Prussian Cultural Heritage Foundation of Germany,” the German ambassador stressed.

“This cooperation emerged as part of our shared efforts to strengthen people-to-people ties and will play an enriching role for the cultural relations, as it includes a loan program for artworks, joint curatorship and training programs to support talent development,” he concluded.