Public Investment Fund of Saudi Arabia has asked the kingdom’s rich families to invest in the internal projects of the country as it is on the trajectory of reassessing or canceling major projects and reviewing its investments, according to a report published by Bloomberg on Tuesday this week.
The report claims that these public investment fund of Saudi Arabia and Ministry of Investment, along with other government entities, organized a meeting on the Red Sea coast with some of the influential and richest families of Saudi Arabia, where they persuaded them to collaborate on more projects and partner more readily with foreigners eyeing investments in Saudi Arabia.
The report came as Saudi Arabia has decided to scale down or delay big-ticket mega projects designed under Crown Prince Mohammed bin Salman’s Vision 2030, which is an effort to reorganize and remake the oil-rich kingdom’s economy and reduce its reliance on oil producers. Reuters had reported on Tuesday that Saudi Arabia has suspended the construction of the Mukab, a giant cube-shaped structure that was set to build in downtown Riyadh.
Saudi Arabia authorities also announced that Trojena, a planned ski resort in Neom, is being downsized and will no longer be hosting the 2029 Asian Winter Games. Moreover, another leading publication, Financial Times, has also confirmed that Saudi Arabia has significantly downscaled and redesigned its mega Neom megacity project, the centerpiece of which was a 170-kilometer straight-line city.
Experts in economics, economists, and engineers had already warned about the high-priced and highly ambitious projects in terms of its feasibility and future financial returns. However, the experts tell that the Saudi Arabia is now moving its focus from ambitions to sectors where it has a competitive advantage.
The kingdom has purchased advanced AI chips from Nvidia and is building data centers from Red Sea to Riyadh in the north. And because of its fossil fuels supplies, the commercial electricity prices in Saudi Arabia are anywhere from 30 to 50% cheaper than the global average.
It is also leaning on mining and tourism. Saudi Arabia has recently launched new laws that will allow foreigners to buy property and invest in Saudi Arabia. Under Crown Prince Mohammed bin Salman, it is still pushing ahead with plans, but to diversify its economy and reduce its reliance on oil revenues, but with a more pragmatic approach. The non-oil economy now makes up more than 55% of the real GDP and is outperforming the total GDP.
Saudi Arabia is still driving 60% of the country’s revenue from its oil. However, oil prices are around $60 per barrel, which is much lower than the $100 per barrel which Saudi Arabia needs to cover its budget fully.
To cover up that shortfall, the kingdom sold bonds in the international market. And in 2024, it became the largest issuer of international debt among bonds among major emerging markets. In January 2026, Saudi Arabia was estimated to have sold an estimated $1.20 billion in bonds.
The country’s investors are still showing trust in Saudi Arabia because the country’s debt-to-GDP ratio is still low, and it has guaranteed oil revenue, so investors are feeling safe investing in Saudi Arabia.
Moreover, on the other hand, the crown prince has also asked the state-owned banks to lend more money to the private companies as well as young people who are interested in buying homes. Hence, banks are also borrowing from debt markets to meet the higher capital rules. Saudi Arabia is now turning towards the rich families to invest in projects, helping to fill the gaps left by banks.
