![Saudi Arabian Crown Prince Mohammed bin Salman attends Jeddah Security and Development Summit in Jeddah, Saudi Arabia on July 16, 2022 [Royal Court of Saudi Arabia - Anadolu Agency]](jpg/aa-20220716-28434051-28434049-jeddah_security_and_development_summit_in_jeddah-1f4d4.jpg)
Saudi Arabia is reportedly seeking to raise $2.7 billion (10bn riyals) to proceed with the development of its ambitious smart megacity project, Neom, according to Bloomberg.
The report cites sources revealing that developers of the flagship project of Crown Prince Mohammed Bin Salman's Vision 2030 initiative are currently in talks with local lenders to raise the funds needed for the early stages of the $500bn city.
Banks are negotiating terms with the Neom team and, if agreed, the loan could be completed in the next few months, said the sources. Moreover, the team is planning to raise up to three billion riyals from local banks to fund the development of Shushah Island, a proposed luxury tourist resort.
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Last month, the Neom developers finalised a deal worth more than 21bn riyals with a group of local investors to develop temporary housing and facilities for 95,000 people under a public-private partnership agreement. Prior to that, they signed a three billion riyal loan with Riyadh Bank to fund the development of an island tourism resort called Sindalah.
First unveiled in 2017, the smart city is located in Tabuk, in the kingdom's north west. However, progress has been slow and there has been criticism of the project's feasibility and ability to attract investment, as well as controversy surrounding the forced displacement of local tribes.
In 2018, Bin Salman told Bloomberg that the city will be completed in 2025. Part of the project is The Line, a 105-mile-long linear smart city, which has also faced scepticism over its feasibility. Urban researchers have suggested recently that the city should be circular, rather than linear due to potential mobility challenges.
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