NEOM Fund Eyes $50 Million Deal with Animoca for Saudi Web3 Growth
Saudi Arabia's NEOM Investment Fund is making a significant stride in the blockchain realm with a proposed $50 million investment in Animoca Brands, aiming to transform the NEOM region into a web3 hub in alignment with the ambitious Saudi Vision 2030 plan.
In a decisive move to embed blockchain technology into its future-forward smart city, the NEOM Investment Fund from Saudi Arabia is proposing a robust $50 million investment in Animoca Brands, a crypto gaming investment heavyweight. This potential partnership is poised to accelerate the development of Web3 infrastructure within the NEOM region, significantly contributing to the realization of the Saudi Vision 2030 objectives.
The NEOM Investment Fund aims to allocate $25 million through convertible notes at a conversion cap price of A$4.50 per share, with the remaining $25 million directed towards acquiring Animoca Brands’ shares on the secondary market. This calculated approach stems from a memorandum of understanding, solidifying the mutual dedication to propelling technological progression.
Majid Mufti, NEOM’s CEO, is optimistic about the project’s prospects, highlighting the transformative capacity of Web3 technology and infrastructure development as foundational elements for NEOM’s tech framework and potential global industry disruptors.
In this alliance, Animoca Brands is committed to delivering Web3 enterprise service capabilities, not just in the NEOM region but also extending to Riyadh, the capital of Saudi Arabia. The company plans to establish a hub within NEOM to invigorate the local Web3 ecosystem and draw investments from its subsidiaries and portfolio companies.
The $500 billion NEOM megaproject stands as a testament to Saudi Arabia’s commitment to innovation and sustainable urban development, showcasing a variety of futuristic facilities including floating industrial complexes and state-of-the-art sports venues. It aligns with Crown Prince Muhammad bin Salman’s broader strategy to diversify the Saudi economy and reduce its oil dependency.
Yat Siu, Executive Chairman of Animoca Brands, commends NEOM’s avant-garde vision, emphasizing the region’s potential to become a blockchain powerhouse. He sees this partnership as a significant milestone in the evolution of Web3 ecosystems.
Zooming out, the Middle East is swiftly adopting emerging technologies, with Saudi Arabia actively participating in international tech collaborations and AI developments. Notably, OpenAI recently partnered with Dubai’s G42, marking another stride in the Middle East’s tech expansion.
This proposed alliance between NEOM Investment Fund and Animoca Brands transcends a mere financial investment, representing a pioneering effort to weave blockchain into future societies, and setting a global example for innovation and sustainable urban planning.
