Saudi PIF takes $8b write-down on flagship gigaprojects
Saudi Arabia’s Public Investment Fund (PIF) has written down the value of some of its largest gigaprojects by $8 billion, reflecting delays, cost overruns, and shifting market conditions.
PIF said the projects were valued at 211 billion riyals ($56.2 billion) at end-2024, down more than 12% from 241 billion riyals in 2023, according to its annual report released Wednesday.
The adjustment covers developments such as NEOM, the planned mega-city on the Red Sea nearly the size of Belgium, which has faced repeated delays and scaling back as Saudi Arabia redirects spending toward infrastructure for major sporting events like the 2034 World Cup.
Economists say the recalibration reflects both fiscal realities and the need to better allocate resources. “A more targeted investment programme with longer timelines is actually positive given weaker oil revenues and Saudi’s new hosting commitments,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
The write-down highlights the financial and practical challenges facing Vision 2030, Crown Prince Mohammed bin Salman’s ambitious plan to diversify the kingdom’s oil-dependent economy.
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