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, 20236892 Shares229741 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.
Loan Negotiations And Sources
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.
Controversy Surrounding Neom
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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Final Words
Saudi Arabia's pursuit of a $2.7 billion loan for the controversial Neom project showcases the country's determination to move forward with the ambitious development.
Despite criticism regarding sustainability, human rights, and liveability concerns, construction is already underway on The Line, the centerpiece of Neom.
The project's significant financial backing, along with the search for additional investments, indicates the Saudi government's commitment to its Vision 2030 plan.
As debates and concerns persist, the future of Neom remains a subject of global interest and scrutiny.
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