Saudi Arabia to Refocus $925 Billion Sovereign Fund Amid Gigaproject Delays

Saudi Arabia is preparing a major shift in its investment strategy, moving its $925 billion Public Investment Fund (PIF) away from ambitious real estate megaprojects toward sectors promising more stable, near-term returns, according to a Reuters report citing an insider source.

The move marks a recalibration of Crown Prince Mohammed bin Salman’s Vision 2030 — a sweeping plan launched in 2016 to diversify the kingdom’s oil-dependent economy. For nearly a decade, the strategy centered on futuristic cityscapes, tourism complexes, and entertainment hubs, including the high-profile NEOM project, designed as a “city of the future” stretching across the desert near the Red Sea.

Gigaprojects Face Delays

Despite global attention and massive funding commitments, projects like NEOM — envisioned to house up to 9 million residents — and plans for a winter sports destination in Saudi Arabia’s northern mountains have faced repeated delays.

According to sources, construction challenges, funding constraints, and changing economic conditions have slowed progress on several flagship developments, leading the PIF to reassess priorities.

The delays have prompted the fund to focus on sectors offering faster, more predictable returns, such as logistics, mineral exploitation, and religious tourism, particularly around Mecca and Medina — areas central to Saudi Arabia’s economic and cultural identity.

New Focus Areas: Mining, Tourism, and AI

Under the new plan, PIF will redirect significant portions of its capital toward:

• Mining and Mineral Exploration: Leveraging untapped mineral reserves to boost non-oil exports.
• Religious Tourism: Expanding infrastructure and services for millions of annual pilgrims to the holy cities.
• Logistics and Industrial Infrastructure: Strengthening supply chains and regional trade connectivity.
• Artificial Intelligence and Data Centers: Capitalizing on the kingdom’s abundant energy resources to power large-scale data centers and support emerging AI ventures.

The PIF’s shift reflects a growing emphasis on sustainable and technology-driven growth, rather than long-term speculative real estate ventures.

Strategic Rethink for Vision 2030

Vision 2030 remains the cornerstone of Saudi Arabia’s transformation agenda, but the realignment underscores a pragmatic shift — focusing on achievable projects that can deliver returns within the decade.

The kingdom’s leadership appears determined to sustain investor confidence by balancing ambition with financial prudence.

While the Public Investment Fund has not officially commented, the strategic pivot suggests that Riyadh is adapting to global economic realities — ensuring its diversification efforts continue even amid delays in its high-profile megacities.

Originally published on newsworldstime.com.