Saudi Arabia's PIF Charts New Course: Embracing Change, Scaling Back Mega Projects

Saudi Arabia's Public Investment Fund (PIF), valued at $925 billion, is preparing to announce its new five-year strategy, sources say. This marks a substantial shift in Crown Prince Mohammed bin Salman's Vision 2030, emphasizing industrial sectors like minerals and artificial intelligence over costly mega projects.

The revamped strategy will focus on attracting international capital, reflecting financial constraints as oil prices remain below the levels needed to fuel Saudi Arabia's transformation plans. This adjustment involves reconfiguring ambitious initiatives, such as The Line, which have faced delays and increased costs.

NEOM, a key element of the vision, will pivot from tourism toward renewable energy and industrial development, including green hydrogen and solar projects. PIF's shift echoes broader economic shifts previously noted, including a focus on logistics, mining, and clean energy.