The strategic investment arm of Saudi Arabia's NEOM megaproject has proposed investing $50 million in crypto gaming investment company Animoca Brands.
The NEOM Investment Fund plans to invest $25 million via the issuance of convertible notes at a conversion cap price of A$4.50 per share. The remaining $25 million will be invested in purchasing Animoca Brands' shares on the secondary market. The partnership has been proposed in a memorandum of understanding, according to a press release from both parties.
The goal of this partnership is to promote the development of web3 infrastructure in the NEOM region, in line with the Saudi Vision 2030 plan.
"Web3 technology and infrastructure development will not only be an important foundation of NEOM’s tech stack and architecture but also has the potential to revolutionize global industries. By partnering with a market-leading company like Animoca Brands, we hope to accelerate web3 technology development and adoption," NEOM Investment Fund CEO Majid Mufti said.
For its part in the deal, Animoca Brands plans to provide "web3 enterprise service capabilities" for both the NEOM region and the Saudi capital, Riyadh. Animoca intends to establish a hub within NEOM to foster the growth of the local web3 ecosystem. It also plans to attract companies to invest in the region from their subsidiaries and investment portfolios.
Saudi Arabia's NEOM megaproject
Animoca Brands Executive Chairman Yat Siu praised NEOM for its plans to involve blockchain technology in its ambitious urban planning megaproject. "We have always referred to the growth of the web3 ecosystem as the emergence of a new meta-nation, and now NEOM could well become the first region to fully harness the power of blockchain," Animoca Brands Executive Chairman Yat Siu said.
NEOM is a $500 billion futuristic smart city located on the Red Sea coast of Saudi Arabia. It is part of the Saudi Vision 2030 scheme. The smart-city project has designs that include a floating industrial complex, enterprise hubs, tourist areas, and sports venues.
The NEOM infrastructure project is packaged as a futuristic eco-city, to attract inward investment and tourism. The scheme is part of Crown Prince Muhammad bin Salman's bid to diversify the Saudi economy away from its dependence on oil.
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