Saudi Fund Trims Ambitious Vision Amid Oil Price Volatility
Saudi Arabia's Public Investment Fund (PIF) has been busy redefining its economic future. With assets of around $910 billion, it's a staggering amount for a country that relied heavily on oil just a decade ago.
The PIF's plan, Vision 2030, aims to reduce the kingdom's dependence on oil and diversify its economy. This involves investing in non-oil sectors such as tourism, sports, and real estate, with the goal of creating jobs and generating revenue for future generations.
The fund has made significant investments in various assets, including a 80% stake in Newcastle United football club, a $5 billion investment in LIV Golf tour, and a long-term deal with Formula One. These moves have been criticized as 'sportswashing,' an attempt to improve the kingdom's image through sports. However, Crown Prince Mohammed bin Salman defends these investments, stating that they are a straightforward economic play.
One of the most ambitious projects is NEOM, a planned development in the north-west priced at around $500 billion. The fund has suspended construction on The Line, a mirrored linear city designed for nine million residents with no cars and no street-level traffic. This decision comes after writing down around $8 billion on its giga-projects in August 2025.
The PIF's governor, Yasir Al-Rumayyan, describes the shifts as a 'continual reweighting of priorities.' While some projects may be trimmed or delayed, the fund remains committed to its long-term vision. The fixed point in the calendar is the 2034 World Cup, which much of the plan is arranged around.