Saudi Arabia's futuristic city project, Neom, is gearing up for its debut riyal bond sale later this year, seeking additional funding avenues for its ambitious $1.5 trillion worth of construction endeavors. Neom has enlisted the expertise of banks such as HSBC Holdings Plc, Al Rajhi Bank, and Saudi National Bank to advise on the sale of Islamic bonds, or sukuk, which could potentially raise up to 5 billion riyals ($1.3 billion). While a specific timeline for the sukuk sale is yet to be finalized, sources suggest it could materialize in the second half of this year, contingent upon market conditions.

Neom's crown jewel, The Line, envisioned as a sprawling urban hub encompassing essential city functions, symbolizes Crown Prince Mohammed bin Salman's grand vision. However, the project's funding trajectory is shifting, with Neom increasingly exploring diverse financing avenues beyond equity injections from Saudi Arabia's sovereign wealth fund. Recent developments include securing a 10 billion-riyal loan from Saudi banks and raising an additional 3 billion riyals to finance Sindalah, a luxury tourism island in the Red Sea. Amid recalibrated aspirations for The Line's future population and escalating funding needs, Neom's pursuit of sukuk sales aligns with broader efforts by Saudi Arabia's Public Investment Fund (PIF) to bolster its financial arsenal.