Sace, 2.4 billion guarantee for Saudi Arabian mega-city Neom

The Sace group is preparing to enter the field in support of the mega project for the city of the future Neom, the entirely green and digital megacity that is part of Crown Prince Mohammed bin Salman's strategy to diversify the Saudi economy away from oil. The economy ministry's subsidiary, according to Bloomberg news agency, has decided to grant 80% coverage on a 3 billion loan to be granted by a pool of international banks, among which, however, there are no Italian institutions.

The initiative would be linked to the Italian government's growing interest in establishing trade relations in the country to create new business opportunities for Italian companies. The project had been announced in 2017 and the goal was to transform a major part of the desert into a city of one million inhabitants by 2030.

The investment was initially estimated at USD 500 billion, but costs would rise over time and the project would be cut back several times. In recent days, however, the CEO of the company in charge of building the megalopolis resigned. The plan envisages the construction of a pair of skyscrapers characterised by a glittering mirror-like exterior, the size of which should be among the largest in the world (even if they are gradually being scaled down over time). A mountain ski resort in the desert, a floating business district and two skyscrapers are also planned. Saudi Arabia is grappling with budgetary difficulties, while the foreign investors indicated as those who would support the realisation of the mega plan have not yet been identified.

Returning to relations between Italy and Saudi Arabia, it must be said that the Neom project already counts Italian developer Webuild SpA among the companies that have been awarded contracts. The company won a $4.7 billion contract for the mountain destination of Trojena and is building part of a high-speed railway line.