A familiar source with the matter reported Reuters that Saudi Arabia is planning to redirect its $925 billion blowout of sovereign wealth fund out of an emphasis on gigaprojects in real estate development, which have occupied its development objectives over the past decade.
The de facto ruler of Saudi Arabia, Crown Prince Mohammed bin Salman, known as MbS, presented his Vision 2030 plan in 2016 to change the economy with emphasis on great real estate development.
The sovereign wealth fund of Saudi Arabia, Public Investment Fund (PIF), has been the force behind financing.
The initial plan included developments entailed like NEOM, a desert-based futuristic city by the Red Sea, and an ambition to host international winter sports in the mountains of the northern part of the kingdom, with the majority of the ski slopes relying on man-made snow.
Projects like NEOM are projected to have a population of 9 million, and other developments have also been consistently delayed.
The source stated that with a scheme to achieve more sustainable near-term returns on PIF, the new strategy will consider narrowing the focus on other already existing developments, including logistics, mineral exploitation, and religious tourism.
The source reported that the kingdom is also placing bets in AI and data centers run with its enormous hydrocarbon and other types of energy resources.
Thus, PIF made no immediate comment when approached by Reuters about the strategy change.
