Saudi Wealth Fund's Governor calls NEOM key priority

 

Saudi Wealth Fund set to reach $1 trillion, NEOM still key priority: PIF Chief

Saudi Arabia’s ambitious NEOM project remains a top priority for the country’s sovereign wealth fund, the Public Investment Fund (PIF), under its new five-year strategy, according to the fund’s governor, Yasir Al-Rumayyan. His comments, made during the Future Investment Initiative in Riyadh, came amid ongoing speculation about the project's future amid delays and adjustments.

NEOM, the $500 billion centerpiece of Saudi Arabia’s Vision 2030 diversification efforts, has faced challenges, including delays, shifts in leadership, and changes to its original design. Despite these setbacks, Rumayyan emphasized that NEOM would remain a central focus of the PIF’s investment strategy through 2030.

The PIF’s new plan outlines six priority “ecosystems” for the next five years, including tourism, urban development, clean energy, innovation, and industry. NEOM will be a major player within its own dedicated ecosystem, Rumayyan noted, helping to streamline capital deployment across the fund’s various initiatives.

 

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“This strategy will guide our capital allocation with clearer timelines,” Rumayyan explained. “We are focusing on prioritizing investments based on their urgency and strategic importance.”

The PIF is also on track to hit a milestone of $1 trillion in assets under management by the end of 2025, Rumayyan confirmed, with the fund being “very close” to reaching that target.

While NEOM remains central to the PIF’s plan, it is the only one of Saudi Arabia’s flagship "gigaprojects"—which also include the Red Sea tourism development and the Qiddiya entertainment city near Riyadh—explicitly highlighted in the new strategy.

NEOM’s development has seen scaling-back of certain plans, particularly with The Line, which was originally envisioned as a pair of mirrored skyscrapers stretching for tens of kilometers. Meanwhile, the nearby Trojena ski resort, slated to host the 2029 Asian Winter Games, has faced criticism from environmentalists.

 

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Rumayyan’s remarks came after the PIF made significant investments in around 100 companies across diverse sectors, from AI to camel milk products, reflecting its role as a key driver in Saudi Arabia’s push to diversify its economy beyond oil into areas like tourism, business, and finance.

Source: al24news.dz