In a significant step towards embracing blockchain technology and web3 innovation, Saudi Arabia's NEOM megaproject is set to invest $50 million in the crypto gaming investment company, Animoca Brands. The NEOM Investment Fund plans to allocate $25 million via convertible notes and another $25 million for the purchase of Animoca Brands' shares on the secondary market, as detailed in a memorandum of understanding.

The primary objective of this partnership is to accelerate the development of web3 infrastructure within the NEOM region, aligning with the broader goals of the Saudi Vision 2030 plan, which seeks to transform the country's economic landscape.

NEOM, a $500 billion futuristic smart city located on the Red Sea coast of Saudi Arabia, represents a core component of the Saudi Vision 2030 initiative. This forward-looking smart city project includes groundbreaking innovations such as a floating industrial complex, advanced enterprise hubs, tourist attractions, and modern sports venues.

The NEOM infrastructure project has been designed to position the city as an attractive destination for both tourists and substantial investments. This initiative is a fundamental part of Crown Prince Muhammad bin Salman's broader efforts to reduce Saudi Arabia's reliance on oil revenues and diversify the national economy.

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.

Majid Mufti, CEO of NEOM Investment Fund

The proposed partnership between NEOM and Animoca Brands reflects the evolving trends in web3 technology, where blockchain and decentralized systems play significant roles.

Animoca Brands, with its expertise in the web3 gaming sector, plans to provide "web3 enterprise service capabilities" to both the NEOM region and Riyadh, the capital of Saudi Arabia. Additionally, Animoca Brands aims to establish a hub within NEOM to foster the local web3 ecosystem. This initiative is expected to attract companies from around the world to invest in the region, leveraging their subsidiaries and investment portfolios.

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.

Yat Siu, Animoca Brands Executive Chairman

This strategic investment by Saudi Arabia's NEOM megaproject underscores the expanding reach of blockchain technology and marks a significant milestone in the journey of NEOM's development and the advancement of web3 technology, aligning with the goals of the Saudi Vision 2030 plan.