NEOM to invest in Boom through new investment arm
NEOM is investing in Boom Supersonic through its newly inaugurated investment arm, NEOM Investment Fund (NIF).
The investment arm has been launched to support the development of the Saudi smart city project’s 14 priority sectors, of which future mobility is one. The size and scale of the investment in Boom Supersonic has not yet been disclosed although more information is due to be published soon, according to a report from The Air Current.
NEOM said NIF will invest through mergers and acquisitions and venture capital in technology startups, with a focus on pioneering growth companies and next-generation industries. As well as Boom Technology, NIF is announcing new investments in firms including Pony.ai, Regent, BlueNalu and Animoca Brands, details of which will be shared in the coming days.
Nadhmi Al-Nasr, CEO of NEOM said: “The vision of NEOM is to address global challenges that redefine liveability, conservation and business. As NEOM’s strategic investment subsidiary, NIF will play a critical role in converting NEOM’s vision to reality. NIF will enable NEOM to sustain its contribution to realising the ambitions of the Kingdom over the long term, cementing its position as a key driver of economic diversification and job creation.”
NIF will assume the role of portfolio manager for NEOM’s sector assets and companies. This, it said, should safeguard returns for the shareholder and investors through portfolio synergies.
Majid Mufti, CEO of NEOM Investment Fund, added: “The NIF strategy is designed to align our development objectives with those of innovators and institutional investors, de-risking opportunities for them to participate in creating core global growth businesses and a thriving economy in NEOM.
“To date, NIF has invested in several technology companies within the 14 priority sectors of NEOM that will accelerate technologies critical to the project and have a major impact on the future of living and sustainability. Replicated over time, this approach will position NEOM as a model for sustainable economic development,” added Mufti.