NEOM Secures $3 Billion SACE-Backed Financing for Development Projects

NEOM, the Kingdom of Saudi Arabia’s flagship sustainable development project, announced the successful closing of a landmark export credit agency (ECA) financing transaction with Italy’s SACE, securing approximately $3 billion under a long-term multicurrency united facility. The deal, announced on January 27, 2025, via the Saudi Press Agency, marks NEOM’s first corporate ECA financing and the largest united financing ever guaranteed by SACE. The facility is backed by a syndicate of nine prominent international banks, including HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan, and Bank of America.

Context and Background

This financing arrangement comes as NEOM continues to advance its ambitious portfolio of developments under Saudi Arabia’s Vision 2030. The partnership with SACE will enable NEOM to leverage supplies from Italian businesses, particularly small and medium enterprises (SMEs), to support development across key sectors such as infrastructure, urban development, construction, and transport—including rail, road, and maritime projects. To date, Italian suppliers and contractors have supported NEOM on a range of projects, with contracts worth SAR6.3 billion. The new facility aims to further strengthen and develop these important international business relationships.

Key Details and Strategic Significance

NEOM acting chief executive Eng. Aiman Al-Mudaifer emphasized the deal’s role in advancing the Kingdom’s economic diversification goals. “This deal will support us in delivering our significant portfolio of developments and reflects the strong confidence that leading financial institutions worldwide place in NEOM,” he said. “It advances the Kingdom’s aim of generating capital investment in line with Saudi Vision 2030, with foreign investment being instrumental in diversifying the economy. This partnership with SACE and the consortium of leading international banks also creates strong ties with major Italian companies that will enhance international trade and investment flows.” Meanwhile, Alessandra Ricci, chief executive of SACE, expressed pleasure for her company to play its part alongside NEOM in this cutting-edge project, which generates opportunities for Italian SMEs and supply chains. “Opening new routes to ‘Made in Italy’ is a priority to allow a long-term growth for Italian exports, matching their potential,” Ricci said.

Implications for International Trade and Investment

The SACE united facility expands and diversifies NEOM’s existing funding pool, supporting its long-term financing requirements as NEOM moves forward in the development of major projects and regions. The transaction highlights the strengthening economic ties between Saudi Arabia and Italy, providing a pathway for Italian SMEs to engage in one of the world’s most transformative urban development projects. The involvement of nine leading international banks underscores global confidence in NEOM’s vision and the broader Saudi investment environment. This deal also sets a precedent for future ECA-backed financing in the region, potentially attracting more international partners to participate in Vision 2030 initiatives.

Vision 2030 Alignment

The successful closing of this $3 billion facility directly supports Saudi Arabia’s Vision 2030 objectives by attracting foreign investment, diversifying the economy, and fostering international partnerships. NEOM, as a centerpiece of this national transformation, continues to demonstrate its ability to secure large-scale, multi-source financing for its development projects. By integrating Italian expertise and supply chains, the project not only advances NEOM’s construction timeline but also reinforces the Kingdom’s role as a global hub for innovation and sustainable development. This partnership exemplifies Vision 2030’s commitment to building bridges between nations and creating shared economic prosperity for the future.

20 Questions

Q1. What is NEOM?

A1. NEOM is a Saudi Arabian mega-city and sustainable development project located in the Tabuk Province. It is designed to be a hub for innovation, technology, and livability, supporting Vision 2030 goals.

Q2. How much financing did NEOM secure?

A2. NEOM secured approximately $3 billion under a long-term multicurrency united facility. This is a landmark export credit agency financing transaction with Italy’s SACE.

Q3. What is SACE?

A3. SACE is Italy’s export credit agency, providing insurance and financial solutions to support Italian exports and international trade. It guarantees this facility for NEOM.

Q4. What is an export credit agency (ECA) financing?

A4. ECA financing involves loans or guarantees provided by an export credit agency to support international trade. In this case, SACE guarantees the facility to support Italian businesses working with NEOM.

Q5. Which banks are involved in this deal?

A5. The syndicate includes HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan, and Bank of America.

Q6. Why is this deal considered a landmark?

A6. It is NEOM’s first corporate ECA financing and the largest united financing ever guaranteed by SACE. It also involves a diverse global bank syndicate.

Q7. How will this financing support Italian businesses?

A7. The facility enables NEOM to source supplies and services from Italian companies, particularly small and medium enterprises (SMEs), in sectors like infrastructure, construction, and transport.

Q8. What is the total value of Italian contracts with NEOM so far?

A8. Italian suppliers and contractors have already secured contracts worth SAR6.3 billion (approximately $1.68 billion) with NEOM across various projects.

Q9. Who is acting chief executive of NEOM?

A9. The acting chief executive of NEOM is Eng. Aiman Al-Mudaifer, who expressed confidence in the partnership with SACE and the international banks.

Q10. What did Eng. Aiman Al-Mudaifer say about the deal?

A10. He said the deal reflects strong global confidence in NEOM and advances Saudi Arabia’s goal of generating capital investment and diversifying the economy under Vision 2030.

Q11. Who is the CEO of SACE?

A11. The CEO of SACE is Alessandra Ricci, who highlighted the partnership’s role in opening new routes for ‘Made in Italy’ exports and supporting Italian SMEs.

Q12. How does this deal relate to Vision 2030?

A12. It attracts foreign investment, fosters international partnerships, and supports economic diversification—all core goals of Saudi Arabia’s Vision 2030.

Q13. What sectors will benefit from the financing?

A13. Key sectors include infrastructure, urban development, construction, and transport (rail, road, and maritime), with Italian SMEs providing goods and services in these areas.

Q14. What is the purpose of the SACE united facility?

A14. The united facility expands and diversifies NEOM’s funding pool, supporting its long-term financing requirements and enabling the development of major projects and regions.

Q15. How does this deal strengthen Saudi-Italian ties?

A15. It creates strong economic ties by involving Italian companies in NEOM’s development, enhancing trade and investment flows between Saudi Arabia and Italy.

Q16. Is this the first ECA financing for NEOM?

A16. Yes, this is NEOM’s first corporate export credit agency financing, marking a significant step in its funding strategy.

Q17. How does the deal support SME growth in Italy?

A17. It provides Italian SMEs access to large-scale NEOM contracts, enabling them to expand exports and grow their businesses with insurance and financial support from SACE.

Q18. What is NEOM’s long-term vision?

A18. NEOM aims to be a model for sustainable living and innovation, attracting global talent and investment to create a thriving economy aligned with Vision 2030.

Q19. How were the announcements made?

A19. The announcement was made via the official Saudi Press Agency (SPA) on January 27, 2025, ensuring transparency and accuracy of information.

Q20. What is the expected impact on regional trade?

A20. The deal sets a precedent for ECA-backed financing in the Middle East, potentially attracting more international partners and boosting regional trade and investment flows.

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