The Financial Times, citing an advisor to the Saudi government, reported that the changes came after the fund conducted a review of all its portfolio companies, including how they will reallocate spending in the coming years.
It follows on from the release in April of PIF’s new 2026–30 strategy, which it said “marks a natural evolution as PIF moves from a period of rapid growth and acceleration to a new phase of sustained value creation.”
That means, for a time, the Saudi government will spend more money on canceling parts of the futuristic desert city gigaproject than it will spend building them.
The scaling down of the Neom project came after a strategic review, which has led to layoffs and a corporate restructuring.
Speaking to reporters as part of a briefing in Riyadh at the end of last year, Finance Minister Mohammed Al-Jadaan said: “We have no ego—absolutely no ego,” adding that the kingdom is willing to defer or cancel projects within its Vision 2030 program “without blinking” if they no longer make economic sense or fail to deliver value.
Concluding its visit to Saudi Arabia last week, the IMF said: “Looking ahead, priorities include improving the business environment, deepening capital markets, supporting small and medium enterprises, aligning education with labor market needs, strengthening governance, and scaling AI adoption while mitigating associated risks.”
