Hong Kong-based Animoca Brands is teaming up with Saudi Arabia’s smart city project, Neom, in a move that says a lot about both companies’ future plans. With a $50 million investment, this deal shows that Saudi Arabia is seriously looking at new tech like blockchain as a way to grow beyond its oil roots.
This aligns with Saudi Arabia’s plan of modernizing the country by 2030
For Animoca, known for its blockchain games, the deal is a golden opportunity to make its mark in a country that’s eager to become a tech leader. The two companies plan to work on special tech projects, known as Web3 services, that could set the stage for what tech growth looks like in Saudi Arabia. This fits perfectly with Saudi Arabia’s Vision 2030 plan, which is all about modernizing the country.
What’s interesting is how the money is changing hands. Part of the funding will be in convertible notes, which are like IOUs that can later be turned into shares. The rest will be through buying shares outright. This mix-and-match approach could be a new way for tech companies to get funding in the future.
But the deal is more than just about money and tech. Saudi Arabia is clearly keen on strengthening its ties with China, as Animoca is a big tech player in Hong Kong. Given that China is Saudi Arabia’s largest trading partner, this partnership might be a smart play for both tech growth and international relations.
Yat Siu, the co-founder of Animoca, sees the deal as a sign of mutual respect and shared goals for a tech-driven future. Although Neom hasn’t shared many details about how it plans to use this new tech, it’s obvious that the project has big ambitions—especially since they’ve been hiring experts in the area.
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(Via)
