Saudi Arabia Seeks $2.7 Billion Loan For Controversial Neom Project
Saudi Arabia seeks $2.7 billion loan for controversial Neom project, encompassing the ambitious 170-mile-long city, The Line. The loan aims to fund the initial stages of the Neom project, a massive development in the northwest of the country spanning 10,200 square miles.
George EvansJul 21, 20234185 Shares139486 Views
Saudi Arabia seeks $2.7 billion loan for controversial Neom project, encompassing the ambitious 170-mile-long city, The Line.
The loan aims to fund the initial stages of the Neom project, a massive development in the northwest of the country spanning 10,200 square miles.
Despite concerns and criticism regarding sustainability, liveability, and human rights, construction is already underway on The Line, and Neom is seeking further investments for its luxury destination, Shushah Island.
According to Bloomberg, sources familiar with the matter indicate that the loan will be primarily provided by local lenders, and negotiations with Neom are ongoing. The loan is expected to be completed within the next few months if agreed upon.
Neom is part of Saudi Arabia's Vision 2030 initiative, spearheaded by Crown Prince Mohammed bin Salman, aiming to diversify the country's economy and reduce dependence on oil.
The project is primarily funded by the country's Public Investment Fund. Prior to this latest loan search, Neom has received substantial investments, including a 21 billion riyals investment for temporary housing and facilities for 95,000 people from local investors.
Despite significant financial backing, the Neom project has faced criticism and controversy. Concerns have been raised about its sustainability, liveability, and human rights implications.
Human rights organizations have reported cases of eviction and severe sentences, including death, for those removed from the Neom site. The United Nations Human Rights Council has expressed alarm over the potential executions.
Companies involved in the project have also been urged to reconsider their participation by rights advocates.
The pursuit of a substantial loan for Neom's development signifies the Saudi government's determination to proceed with the ambitious project.
As the loan negotiations progress, the fate of Neom remains a subject of global interest, with ongoing debates about its impact on the environment, human rights, and the region's future.
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