Saudi Arabia's Neom secures €3bn financing from Italian export agency
Saudi Arabia's $500bn megaproject NEOM has secured a landmark 3bn euro financing facility through Italy's export credit agency SACE, marking the agency's largest-ever unconditional financing package.
The multi-currency, long-term financing agreement has been backed by a consortium of nine global financial institutions, including HSBC, BBVA, Bank of China, Credit Agricole CIB, Agricultural Bank of China, Citibank, China Construction Bank, JP Morgan, and Bank of America.
The deal, representing NEOM's first export credit agency financing arrangement, will primarily support Italian suppliers and SMEs involved in the project's core infrastructure development, including urban planning, construction, and transportation systems, NEOM said in a statement on Monday.
Aiman Al-Mudaifer, Acting CEO, NEOM said: “NEOM is committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress
Alessandra Ricci, CEO of SACE said: “We are glad to play our part alongside NEOM in this cutting-edge project, which generates opportunities in a wide range of sectors for Italian SMEs and supply chains.
Italian contractors have already secured contracts worth 6.3bn euros in NEOM to date, underscoring Italy's significant role in the megaproject's development, according to company data.
The financing package arrives as NEOM accelerates construction across its flagship developments, including THE LINE, a 170-kilometre linear city, and OXAGON, which aims to become the world's largest floating industrial complex.
The agreement highlights Saudi Arabia's push to diversify funding sources for its ambitious Vision 2030 projects, as the kingdom seeks to reduce its traditional reliance on oil revenues and government funding.
Market analysts suggest the agreement could pave the way for similar export credit agency-backed financing packages for other Saudi megaprojects, whilst noting that NEOM's scale and complexity make it a unique case.
Italy-Saudi wider deals
The deal follows a visit to the country by right-wing Italian Prime Minister Giorgia Meloni, who met with Crown Prince Mohammad bin Salman in Al Ula on January 26.
The partnership agreements, spanning defence, energy and Italy's Mattei Plan for Africa, come as Saudi Arabia continues its economic diversification push under its Vision 2030 programme.
"There is enormous untapped potential in our cooperation, and this visit can open a completely new phase in our partnership," Meloni told reporters at the Maraya Concert Hall, the world's largest mirrored building. "This is why we have elevated our bilateral relations to the level of strategic partnership."
The wide-ranging talks between Meloni and Saudi Crown Prince Mohammed bin Salman covered several regional crises, including Gaza, Syria, and Ukraine. According to a statement from the Italian government, discussions focused on "consolidating the ceasefire in Gaza and resuming a political process towards a two-state solution," as well as assistance to Lebanon and "the search for a just and lasting peace in Ukraine."
The Saudi leader, who hosted Meloni in the archaeological jewel of Al-Ula, is pushing for the lifting of sanctions against Syria. Both leaders also discussed energy transition and cooperation in Africa, where Rome is seeking support from Gulf nations.
"Cooperation is something entirely different," Meloni said, emphasising the partnership extends beyond commercial deals. "It means confronting and reasoning together despite differences in an increasingly uncertain scenario, where knowing how to listen and be heard is fundamental and is the first step."
However, the agreements faced criticism at home. Opposition leader Nicola Fratoianni sarcastically remarked: "With fanfare, the Meloni government has signed billion-euro agreements with Saudi Arabia - the same regime Meloni previously condemned for having the death penalty for apostasy, adultery, homosexuality, and zero women's rights. I suppose all this was resolved before her visit, right Prime Minister Meloni?"