Experts to Asharq Al-Awsat: Al-Madina’s IPO will repeat the success of Aramco’s listing on the financial market
Experts confirmed to Asharq Al-Awsat that the unveiling of the designs of “The Line” project in the heart of NEOM – one of the pillars of the “Vision 2030” projects – confirms Saudi Arabia’s tendency to invest in strengthen the qualitative development infrastructure. and expands the base of manpower and skillful mind.» The announced designs are the process of transformation in a new global approach that emphasizes the preservation of nature and the environment and reliance on renewable energy in a civilizational revolution with exceptional specifications.
The day before yesterday, Prince Mohammed bin Salman bin Abdulaziz, the Saudi Crown Prince and Chairman of the Board of Directors of NEOM, announced the designs of the city, which revolves around man and represents a global model that embraces sustainability and the ideal of living in harmony with living nature, which reveals the tendency to place the “NEOM” territory in 2024 on the Saudi stock market.
Economic and development addition
After the giant project was announced, Prince Mohammed bin Salman said: “The volume of investments in (NEOM) during the first phase will involve 1.2 trillion riyals (320 billion dollars) until 2030, and we mostly believe that (NEOM) will be offered for public subscription in 2024.” .
He added that the internal interest rate is still being worked on, which is likely to be from 9 to 16 percent, indicating that NEOM is ultimately aiming for a return on investment of 13-14 percent.
The Crown Prince also indicated that “by 2030, the Kingdom wants to reach a population of 50 million people (25 million citizens and 25 million expatriates), pointing out that the maximum population of the capital, Riyadh, is 25 million, while Neom can accommodate about 10 million.
– financial market
Here, the specialists explained that the process of offering the “NEOM” area for subscription and adding 1.2 trillion riyals (320 billion dollars) in the Saudi financial market will increase the market value after the completion of the project raised to more than 5 trillion riyals ($1.3 trillion), expecting it to be a bigger success story. A historic offering on the global stock exchanges of Aramco in the main Saudi stock market, which will reflect positively on the local market, making it one of the largest markets in the world.
– simulation of the future
Majid Al Hokair, General Manager and CEO of Abdul Mohsin Al Hokair Company, told Asharq Al-Awsat that “The Line” project is racing against time with impressive designs that simulate the future of humanity and as a civil revolution with considered exceptional specifications. in efforts that confirm Saudi Arabia’s progress towards a qualitative development structure and the expansion of the hands base, Working and skilled mind.
Al Hokair added that “The Line” area will be built on an area not exceeding 34 kilometers, which means its capacity to accommodate millions of tourists, which is in line with the Kingdom’s directions represented in its vision to attract 100 million annual visits by 2030.
Al Hokair added that the project is characterized by its strategic location and suitable terrain to take advantage of the latest technology, construction and manufacturing processes with the concept of digital transformation, to achieve the ideal of life and the challenges that humanity faces in the face to face.
Opportunities for investors
Muhammad Al-Shumaimari, Director General of the Muhammad Al-Shammari Financial Consulting Office, for his part told Asharq Al-Awsat that the “NEOM” offering has a huge value of about 1.2 trillion riyals ($320 billion) to the Saudi market will add. , which emphasizes that this project will involve several sectors under its umbrella. Whether logistics, transport, technology, real estate and tourism, the company will be represented in the IPO to be available to investors with great opportunities.
Al-Shamimary continued that the offering of the “NEOM” area will bring back the memory of the largest offering in the history of Saudi Aramco, whose market value today reached 8.5 trillion riyals ($2.2 trillion).
And Muhammad Al-Shamimary stated that these successes will be repeated with the launch of “NEOM” and its subsidiaries, especially that the project is one of the largest international projects to reflect positively on the Saudi stock market, which yesterday (Tuesday) received a stimulus. ) as a result of this announcement, to close the index high at the level of 11,964.21 points.
On the other hand, the announcement of the launch of “NEOM” was reflected in the Saudi stock market index, which recovered yesterday (Tuesday), to close 89.99 points higher and close at 11,964.21 points, with transactions at value of 5 billion riyals ($1.3 billion) ).
The volume of traded shares amounted to 164 million shares, divided by more than 300 thousand transactions, in which the shares of 102 companies recorded an increase in their value, while 93 closed.
In the same context, the Saudi parallel stock index (Nomu) closed yesterday, down 247.03 points to 20,791.18 points, with transactions worth 21.3 million riyals ($5.6 million), and the volume traded shares shared more than 310 thousand shares. with 1450 transactions.
And Prince Mohammed bin Salman said in a statement announcing the designs of “The Line”: “When the project was launched, we promised to redefine the concept of urban development by developing societies where people are the main focus is, and today (The Line) achieves the ideal of life and addresses the urgent challenges facing humanity. ». And he added: “The exceptional designs explain the internal structure of the multi-layered city and address the problems from traditional flat horizontal cities, achieving complete harmony between urban development and the conservation of nature with all its resources.” He continued, “We cannot ignore the environmental crisis, as well as the way of life that the cities of the world in the face does not stare. That is why we at (NEOM) strive to be at the forefront of providing new and innovative solutions. Today we are determined to implement the idea of ”Building” through a team in addition to a group of the brightest minds in architecture and construction in the world.