Saudi Arabia’s $925 billion Public Investment Fund (PIF) plans to announce a new five-year strategy this week, two people with direct knowledge of the matter said, in the biggest reset yet of Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz Al Saud’s economic transformation plan.
The Saudi sovereign wealth fund soft-launched its new 2026-2030 strategy with key investors and strategic partners yesterday on the sidelines of a conference in Riyadh, the sources familiar with the matter told Reuters.
The new blueprint will emphasise sectors including industry, minerals, artificial intelligence and tourism, while scaling back and in some cases reconfiguring expensive mega projects such as The Line a futuristic mirrored city, the sources said.
One source said the new roadmap will place greater emphasis on attracting capital from major global asset managers, reflecting mounting fiscal pressures as oil prices remain well below levels needed to fund the kingdom’s ambitious transformation agenda.
The shift marks the most significant recalibration to date of Prince Mohammed bin Salman’s Vision 2030, which for nearly a decade has prominently featured mega futuristic developments. The kingdom is currently reviewing several of the mega projects.
Many of these, including The Line, which extends 170km into the desert, and the planned Trojena winter sports hub, have faced delays and ballooning costs. The latest to be suspended was a cube-shaped skyscraper in Riyadh.
Last month, Saudi Economy Minister Faisal Al Ibrahim told Reuters: “We’re very transparent. We’re not going to shy away from saying we had to shift this project, delay it, re-scope it,” without mentioning specific projects.
Under the new strategy, NEOM will shift away from its earlier emphasis on tourism and futuristic urban design towards renewable energy and industrial development, including green hydrogen, solar and wind projects, and data centres that benefit from their proximity to the sea for cooling, the sources said.
The Line was not on display in the venue at yesterday’s opening day of the private sector forum, while NEOM’s video displays underscored the new direction, focusing on energy and industrial initiatives rather than the high-profile real estate and tourism concepts once billed as being at its core.
PIF’s updated focus echoes details previously reported by Reuters, including a broader shift towards logistics, mining and advanced manufacturing, as well as clean energy and religious tourism.
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