NEOM: Saudi Arabia’s Generational Investment Draws Global Interest

Translate In Arabic

Riyadh: Saudi Arabia’s ambitious NEOM project, a futuristic region being developed in the desert, is a long-term “generational investment,” according to the country’s Investment Minister Khalid Al-Falih. Speaking at the World Investment Conference in Riyadh, Al-Falih explained that NEOM is not a short-term investment opportunity, with foreign investment expected to increase gradually as foundational projects come to market."NEOM was never intended to be a two- or five-year investment opportunity," Al-Falih said. "It’s a generational investment," emphasizing that the pace of investment will accelerate over time as key projects in the area begin to take shape.

NEOM is part of Saudi Arabia’s Vision 2030 economic diversification strategy, aimed at reducing the Kingdom’s reliance on oil revenues. The city, which will be nearly the size of Belgium, is set to accommodate 9 million residents and is a centerpiece of the country’s development plans. The Public Investment Fund (PIF), which has allocated hundreds of billions of dollars into various projects, is instrumental in funding NEOM. While NEOM’s ambitions have been scaled back to prioritize key developments for global sporting events, foreign investment is steadily increasing. Al-Falih indicated that foreign capital is beginning to flow into the region, and projects within NEOM are increasingly being financed through global and private capital sources, alongside PIF’s contributions. Addressing the recent departure of NEOM’s CEO Nadhmi Al-Nasr, Al-Falih praised his leadership and stated that the change was part of the natural progression of the project. The Minister reassured investors that NEOM remains on track, with rising confidence in its long-term profitability