The Neom project in Saudi Arabia is a $500 billion venture led by Crown Prince Mohammed bin Salman as part of Vision 2030. As the centerpiece of the project, The Line is a futuristic city within mirrored skyscrapers that aims to be sustainable and emissions-free. Other elements include a sustainable port on the Red Sea, a ski and adventure resort, and a luxury island called Sindalha.
To fund its development, the Neom project has started borrowing money and is looking to sell Islamic bonds, known as sukuk. With an estimated cost of $500 billion, the project aims to raise up to $1.3 billion through this sale. This move reflects the challenges of executing large-scale projects such as Neom, which will require significant funding beyond what can be provided by Saudi Arabia’s sovereign wealth fund, PIF.
Despite these challenges, there are concerns about rising costs and the need for additional funding to fully realize the ambitions of Vision 2030. As such, Neom is one part of a larger effort by Saudi Arabia to diversify its economy away from oil and into other sectors such as technology.