Saudi Arabia’s sovereign wealth fund preparing to announce strategy prioritizing different sectors
Saudi Arabia’s $925 billion Public Investment Fund (PIF) is preparing
to announce a new five-year strategy later this week, marking the most
significant reset yet of Crown Prince Mohammed bin Salman’s economic
transformation agenda, according to sources familiar with the matter.
The sovereign wealth fund has
already soft-launched its 2026–2030 strategy to key investors and strategic
partners on the sidelines of a conference in Riyadh, sources told Reuters. The
revised blueprint is expected to prioritise sectors such as industry, mining,
artificial intelligence and tourism, while scaling back or reshaping some of the
Kingdom’s most capital-intensive mega projects.
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Sources said the new roadmap will
place greater emphasis on attracting investment from major global asset
managers, reflecting rising fiscal pressures as oil prices remain below levels
required to comfortably fund Saudi Arabia’s ambitious development plans. All
sources declined to be named as they were not authorised to speak publicly.
The shift represents the most
substantial recalibration to date of Vision 2030, which for nearly a decade has
been defined by high-profile futuristic developments. Saudi authorities are
currently reviewing several mega projects, many of which have faced delays and
rising costs, including NEOM’s 170-kilometre Line city, the Trojena mountain
tourism project and a recently suspended cube-shaped skyscraper planned for
Riyadh.
Last month, Economy Minister Faisal
Al-Ibrahim acknowledged the reassessment, telling Reuters that the Kingdom was
transparent about delaying, reshaping or rescoping projects when necessary,
without naming specific developments.
Under the updated strategy, NEOM is
expected to pivot away from its earlier focus on tourism and futuristic urban
design towards renewable energy and industrial development. This includes
expanding green hydrogen initiatives, solar and wind power projects, and data
centres that can take advantage of coastal locations for natural cooling.
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The shift was reflected at the
opening day of the private sector forum in Riyadh, where The Line was notably
absent from displays, while NEOM’s presentations highlighted energy and
industrial ventures rather than the real estate and tourism concepts that once
dominated its vision.
PIF’s evolving priorities align with
earlier reporting by Reuters, pointing to a broader focus on logistics, mining,
advanced manufacturing, clean energy and religious tourism as Saudi Arabia
refines its long-term development strategy.
Source: Reuters
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