Animoca Brands, a prominent blockchain gaming and metaverse company, has unveiled a strategic alliance and investment deal with Neom, a Saudi Arabian urban development project. Through the deal, the two will promote the adoption of cryptocurrency technology in the Gulf region.
In a joint memorandum of understanding, the two companies have committed to collaborating on digital infrastructure projects that align with Neom’s “Vision 2030” objectives, and they will create a hub to nurture the local blockchain ecosystem.
Neom’s investment arm is set to inject $50 million into Animoca Brands, pending final agreement. This investment comprises $25 million in convertible notes directly from the company and another $25 million earmarked for the acquisition of Animoca shares in the secondary market.
Neom is an urban metropolis located in the Tabuk Province of Saudi Arabia, designed to embrace cutting-edge technologies in its pursuit of a futuristic, green energy-powered city. While the project carries a total price tag of $500 billion, it has faced scrutiny over allegations of forced evictions of local tribe members. UN experts were alarmed when three local tribesmen were sentenced to death in August 2022.
Animoca Brands will serve as an advisor to Neom in the creation of blockchain-based services. As a leading blockchain game publisher and metaverse investor, known for titles such as “The Sandbox” and “Formula E: High Voltage,” it is positioned as an expert in the metaverse space. The company has also backed numerous Web3 firms, including NFT marketplace OpenSea, “NBA Top Shot” creator Dapper Labs and “Axie Infinity” game studio Sky Mavis. As of last year, Animoca was valued at $5.9 billion.
With Neom, Animoca can introduce innovative models for living and working within the planned 34,000-square-mile development in Northern Saudi Arabia. This collaboration will encompass various Web3 and metaverse projects tailored to Neom’s futuristic vision.
Investing In Saudi Arabia’s Future
Neom has also unveiled recently its dedicated Neom Investment Fund (NIF), targeting mergers, acquisitions and tech startup ventures. The fund will engage in joint ventures with global organizations to boost various sectors, notably travel and tourism.
“As Neom’s strategic investment subsidiary, NIF will play a critical role in converting Neom’s vision to reality,” Nadhmi Al-Nasr, the CEO of Neom, stated. “NIF will enable Neom to sustain its contribution to realizing the ambitions of the Kingdom over the long term, cementing its position as a key driver of economic diversification and job creation.”
