Saudi Arabia is reportedly making a big shift in its economic plan, moving away from the massive, headline-grabbing real estate developments that have been its focus for the past decade.
A source directly familiar with the kingdom’s plans told Reuters that Saudi Arabia is preparing to reallocate its \text{\$925 billion} sovereign wealth fund, the Public Investment Fund (PIF), to other sectors.
From Dream Cities to Practical Growth
This move signals a change in strategy from Crown Prince Mohammed bin Salman’s (MbS) ambitious ‘Vision 2030,’ which was launched in 2016 to transform the economy through huge, real estate-focused projects.
• The Original Vision: The initial plan centered on ‘giga-projects’ like NEOM, the futuristic desert city on the Red Sea, and the development in the northern mountains that was even set to include ski slopes made with artificial snow.
• The Reality Check: These projects, including the planned 9-million-person linear city of NEOM, have faced multiple delays.
A New Focus: Faster, More Sustainable Returns
The source indicated that the PIF is now prioritizing a new approach designed to ensure more sustainable financial returns in the near term. This means narrowing the focus to existing, more realistic sectors:
• Logistics
• Mineral Extraction
• Religious Tourism
Furthermore, the kingdom is planning to significantly ramp up investments in cutting-edge areas like Artificial Intelligence (AI) and building massive data centers powered by its vast energy resources.
The PIF has not yet commented publicly on this strategic change when contacted by Reuters.
