Riyadh – Mubasher: The International Monetary Fund (IMF) announced its plans to support Saudi Arabia in launching its megaproject Neom at a value of $500 billion, Reuters on Tuesday reported.
“It is a signal that greater regional cooperation is back ... we see value and necessity in regional cooperation,” the agency added, citing Jihad Azour, head of the IMF in the MENA region, as saying.
“Riyadh would need to balance the huge cost of the zone and other economic projects with its drive to cut a big state budget deficit caused by low oil prices,” Azour added.
Neom will extend through Jordan and Egypt, and it will be located in the North West of Saudi Arabia.
The Saudi crown prince, Mohammad bin Salman previously announced the country’s plan to build Neom at a value of $500 billion.
The project will be a business and industrial zone, and makes up the largest effort by the Kingdom to reduce its dependence on oil exports.
The city will cover an area of 26,500 square kilometres, and its business will focus on industries as biotechnology, energy and water, food, and advanced manufacturing and entertainment.
Neom’s first phase is expected to be completed by 2025.
