NEOM secures SAR10 billion financing facility

28 April 2024 Riyadh, KSA
  • PIF giga-project secures revolving credit facility to support short-term financing requirements
  • Move reflects NEOM’s strategy to diversify its sources of funding
  • Development moves forward on projects including Trojena, THE LINE, Oxagon, and Sindalah 

NEOM has secured a revolving credit facility (RCF) worth SAR10 billion to support short-term financing requirements, as the PIF giga-project moves forward in the development of major projects including Trojena, THE LINE, Oxagon, and the soon-to-open luxury island destination, Sindalah.


The RCF, which follows a Murabaha structure, aligns with NEOM’s strategy to diversify its sources of funding. The lead arrangers for the transaction included Saudi National Bank, Riyad Bank, and Saudi Awwal Bank, with nine banks in total participating.


Nadhmi Al-Nasr, CEO of NEOM, said: “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. 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.”


The new RCF follows on from the SAR23 billion agreement signed by NEOM and its partners to finance the NEOM Green Hydrogen Company. It also follows last year’s SAR3 billion debt financing arranged to partially fund Sindalah. 


NEOM also recently hosted representatives from 52 global, regional and local financial institutions in the developing region. The visiting delegates viewed progress across key projects at NEOM, its investment opportunities and participated in focus sessions with the NEOM leadership team to explore partnerships.