Saudi Arabia’s Public Investment Fund, the engine driving the kingdom’s ambitious Vision 2030 economic transformation plan, slashed $8 billion in value from its five mega-projects as costs spiraled and oil prices dipped.
The writedown, revealed in PIF’s 2024 annual report, comes as the kingdom’s flagship project, NEOM, is under review, with jobs and project scopes on the line.
The sovereign wealth fund still expects to more than double its assets to $2.67 trillion by 2030, doubling down on domestic growth even as fiscal pressures mount. In 2024, the fund created 24 new companies, including artificial intelligence mega-fund HUMAIN, advanced manufacturing firm ALAT, and commercial aerospace company Neo Space, as it boosted domestic assets to roughly 80% of its portfolio and pared back the share of international investments.
Meanwhile, there are signs that the kingdom’s support of its mature, operational businesses is paying off, which may prove critical to threading the post-oil needle. Video game and esports company Savvy Games Group, aircraft lessor AviLease, telecom firm STC, and mining giant Ma’aden, as well as dividend earnings from Saudi National Bank, helped boost 2024 revenues 25%.