Saudi Arabia’s $1.5 trillion Neom development has secured $3bn in funding from state-owned Italian financier SACE, paving the way for Italian businesses, suppliers and SMEs to work on the programme’s many individual projects.

Neom notes that Italian suppliers and contractors have so far secured contracts worth $6.3bn on the project.

Alessandra Ricci, SACE’s chief executive, said: “Opening new routes to ‘Made in Italy’ is a priority to allow a long-term growth for Italian exports, matching their potential. Our Riyadh office supports Italian companies and their potential partners and counterparties.”

Aiman Al-Mudaifer, Neom’s acting chief executive, said: “This partnership with SACE and the consortium of leading banks also creates strong ties with major Italian companies that will enhance international trade and investment flows.”

SACE has also signed $3.3bn of contracts with Saudi Arabian organisations, including electricity and water companies.

Italy’s investment has been guaranteed by nine banks: Agricultural Bank of China, Banco Bilbao Vizcaya Argentaria, Bank of America, Bank of China, China Construction Bank, CIB, Citi, Crédit Agricole, HSBC and JP Morgan.

Saudi Arabia is forecast to become the world’s largest construction market by 2028.