RIYADH: Saudi Arabia’s $500-billion giga-project NEOM has entered into a strategic partnership with Hong Kong-based Animoca Brands Corp. to drive regional Web3 initiatives, aligning with the objectives outlined in the Kingdom’s Vision 2030.
As part of this partnership, Animoca Brands will collaborate with NEOM to develop new enterprise service capabilities with global commercial applicability. These will be deployed to support technological advancements in Riyadh and the NEOM region.
Web3 represents the third generation of the World Wide Web, incorporating concepts such as decentralization, blockchain technologies, and token-based economics. This strategic agreement also aims to establish a hub within NEOM dedicated to nurturing the local Web3 ecosystem.
Majid Mufti, CEO of NEOM Investment Fund, said: “We are excited to partner with Animoca Brands to support the development of NEOM’s digital infrastructure.”
He added: “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.”
According to a press statement, NEOM has also entered into a convertible notes financing term sheet agreement with Animoca Brands.
Under this agreement, NEOM Investment Fund will put in $50 million in Animoca Brands. Of this amount, $25 million will be through the issuance of convertible notes at a conversion cap price of $4.50 per share, with the remaining $25 million invested in purchasing the company’s shares on the secondary market.
However, the company said the execution of definitive documents for the notes is subject to various conditions precedent.
“We are honored and excited to partner with and receive investment from NEOM, one of the world’s most ambitious projects seeking to use innovation and technology to redefine how we live, work, and play,” said Yat Siu, the co-founder and executive chairman of Animoca Brands.
Earlier this month, NEOM signed an investment deal with the US-based electric seaglider manufacturer REGENT to enhance its transport offerings. NEOM aims to strengthen its capabilities in sustainable water mobility, providing state-of-the-art water transport services in the region.