Which countries are the largest foreign investors in NEOM
Introduction
It is challenging to definitively rank the largest foreign investors in NEOM, as the project has encountered difficulties in attracting the initially anticipated levels of foreign investment. However, we can identify several key countries and entities that have demonstrated significant interest or made investments in the project:
1. China
- China has emerged as a major potential investor in NEOM.
- In August 2023, Saudi Arabia’s Public Investment Fund executed six agreements valued at USD 50 billion with Chinese firms to incentivize capital flows into NEOM.
- Chinese companies, such as the China Railway Construction Corporation (CRCC), have already completed projects within NEOM.
2. United States
- While specific investment figures are not disclosed, United States companies have exhibited interest in NEOM.
- NEOM inaugurated its first US office in New York City in April 2023 to facilitate business coordination across North America.
- US-based Air Products entered into a joint venture with NEOM for the establishment of a green hydrogen-based ammonia production facility.
3. United Kingdom
- London-based Solar Water Plc has signed a joint venture agreement with NEOM to develop carbon-neutral hydro-infrastructure.
- NEOM has opened its first international branch in London to oversee its operations in Europe.
4. Germany
- The German aircraft manufacturer Volocopter has formed a joint venture with NEOM.
5. Sweden
- The Sweden-based company Candela has established a partnership with NEOM.
Conclusion
It is imperative to note that while these countries and firms have expressed interest or made initial investments, the overall foreign investment in NEOM has fallen short of the initial projections. Saudi Arabia has been actively seeking additional foreign investment, particularly from China, to facilitate funding for the project. The kingdom has faced challenges in attracting the levels of foreign investment it initially envisioned, resulting in increasing financial pressure on the Saudi Public Investment Fund.