Saudi Arabia is preparing to redirect its $925 billion sovereign wealth fund away from the large-scale real estate megaprojects that have dominated its development agenda for the past decade, Reuters reports. According to a source with direct knowledge of the plans, the move is part of a broader effort to secure more sustainable near-term returns.
The Public Investment Fund (PIF), which has been the main vehicle for Crown Prince Mohammed bin Salman’s Vision 2030 plan introduced in 2016, financed projects such as NEOM—a futuristic city planned along the Red Sea—and international winter sports initiatives in the kingdom’s northern mountains. These projects have experienced repeated delays, with NEOM’s projected 9 million population still far from reality.
The new strategy, the source said, will narrow the fund’s focus to existing developments in logistics, mineral exploitation, and religious tourism. Investments in artificial intelligence and data centers powered by Saudi Arabia’s hydrocarbon and other energy resources are also expected to play a growing role in the PIF portfolio.
The shift reflects the kingdom’s drive to balance visionary long-term projects with near-term economic returns, Reuters reports, while reducing exposure to the high costs and delays associated with megaprojects. The PIF did not immediately comment on the planned strategy adjustment.
This pivot marks a significant recalibration of Saudi Arabia’s economic ambitions under MbS, signaling a move toward sectors with faster returns and strategic technological relevance, while still maintaining the kingdom’s broader Vision 2030 objectives.
