Saudi Arabia's NEOM Initiative Proposes $50 Million Investment in Animoca Brands

According to Blockworks, Saudi Arabia's NEOM initiative has proposed a $50 million investment in Web3 gaming and investment company Animoca Brands. NEOM's investment division will collaborate with Animoca to further Web3 projects in alignment with Saudi Arabia's Vision 2030 strategy. Half of the investment will come through convertible notes with a capped conversion price of $4.50 AUS per share, while the other half will be used to acquire Animoca shares from the secondary market. The finalization of the financing agreement for the convertible notes is contingent on agreed conditions being met.Animoca Brands will work with NEOM to develop Web3 business services for global use, focusing on technological growth in the Saudi capital Riyadh and the NEOM area. Specific information regarding the projects they intend to undertake with the NEOM ecosystem has not been revealed, as the initiatives are still in the planning phase. NEOM is an ambitious initiative launched by Saudi Arabia, designed to be a new-model international city and economic zone situated in the northwestern part of the country. The project's vision is for the city to be a hub for innovation, technology, and sustainable development, seeking to diversify the Saudi economy away from its traditional reliance on oil.Yat Siu, Animoca's executive chairman, expressed excitement about the partnership and investment from NEOM, stating that the growth of the Web3 ecosystem is the emergence of a new meta-nation, and NEOM could become the first region to fully harness the power of blockchain. Saudi Arabia has previously disclosed investments in about 40 US venture capital firms, many of which are involved in crypto, blockchain, and Web3 ventures. Sanabil, associated with Saudi's sovereign wealth entity, annually allocates about $2 billion to support businesses with innovative models, including stakes in firms such as Andreessen Horowitz (a16z), Polychain Capital, and Peter Thiel-backed Valar Ventures.