Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
AFP: France's new PM Sebastein Lecornu resigns just hours after unveiling cabinet.
Trump: Technical teams will meet again on Monday in Egypt to discuss and clarify the final details, and the first phase is scheduled to be completed this week
US President Donald Trump: Talks with Hamas have been very successful and are moving at a rapid pace
Local sources in Aleppo: Violent clashes erupt between the SDF and factions affiliated with the transitional authority on the Deir Hafer and Tishrin Dam fronts in the eastern Aleppo countryside
Israeli media: Interceptor missiles fired in an attempt to shoot down the drone
IOF Spokesperson: Sirens sounded amid suspected "enemy aircraft" infiltrating the Eilat area
Israeli media: "Israel" won the battle but lost the war strategically and politically
Israeli media: Ben Gurion Airport's airspace closed to air traffic following missile launch from Yemen
Israeli media: Echoes of several explosions heard in central occupied territories
United States: A federal judge temporarily blocks President Donald Trump from deploying 200 Oregon National Guard troops to Portland

Saudi Arabia's Vision 2030 might be lacking a financial vision

  • By Al Mayadeen English
  • Source: Agencies
  • 9 Apr 2024 16:52
  • 4 Shares
4 Min Read

Bloomberg reports that the kingdom is facing significant obstacles in financing key projects such as Neom and The Line and is cutting back on some of its ambitions.

  • x
  • Saudi Arabia's Vision 2030 seems to lack financial vision
    Rendered images of The Line released by Saudi Arabian authorities after announcing Neom in Riyadh, Saudi Arabia on January 10, 2021 (Saudi Arabian authorities)

Saudi Arabia's plans for Neom, a futuristic city integral to Crown Prince MBS Mohammed Bin Salman's Vision 2030 economic transformation plan, are encountering persistent hurdles and financial setbacks, casting doubt on the project's feasibility and success, a Bloomberg report said.

Since 2017, Saudi Arabia has been working on developing Neom in a desert area along the Red Sea. The country has committed at least $500 billion to this project but continues to actively seek additional investments to support its development.

Read more: KSA invests billions into e-gaming to diversify its economy

One significant issue is the reduced estimates for the number of people expected to settle in Neom, particularly in The Line, a key component of the project. This could impact the city's viability and economic sustainability.

According to sources within the Saudi government cited by Bloomberg, The Line was originally intended to accommodate 1.5 million people by 2030. However, it has since been scaled down, with plans now aiming for a population of 300,000 residents. Additionally, the length of the innovative linear city has been reduced from an initial 170km to a mere 2.4km, while reports are stating that workers at the site in northwestern Saudi Arabia are being laid off.

Read more: Saudi Arabia on spending spree to steer away from oil dependency

Sources have revealed that Neom's budget for 2024 has not yet received approval from the Public Investment Fund (PIF), the entity led by MBS responsible for investments abroad and the swift overhaul of Saudi Arabia's infrastructure.

Bloomberg reported that officials have indicated that certain projects outlined in the Vision 2030 plan will be postponed beyond the initial deadline.

Becoming your own investor

In another report published earlier this week, Bloomberg revealed Vision 2030 plans are on shaky grounds as the Kingdom finds itself having to pay out of pocket for investors to come rather than the other way around, leading to a financial bleed in the oil-rich country's funds.

Related News

Saudi Arabia to reassess spending amid oil slump: Financial Times

Saudi Arabia's Neom secures $5bln deal for AI data center

Despite this, the country aims to reach $100 billion in foreign direct investment (FDI) annually by 2030, a goal significantly larger than its historical achievements and about 50% more than what India currently attracts.

From 2017 to 2022, the Kingdom averaged just over $17 billion in annual FDI inflows. Meanwhile, the 2023 FDI target is set at about $19 billion according to the country's Investment Ministry.

Reaching the 2030 goal appears to be unattainable presently, with foreign investors showing caution, Bloomberg reported, citing bankers, legal advisors to investors, and individuals knowledgeable about Saudi Arabia's fundraising efforts.

Read more: Saudi Arabia's foreign reserves dip to 14-year low

This cautious approach has prompted the government to reassess its strategy, considering the possibility of financing a larger portion of its economic transformation itself, within a tight timeline.

Despite some foreign companies agreeing to joint ventures at Neom, Riyadh still bears the responsibility of financing nearly all of the cost, which is approximately half of its current economic output.

Finance Minister Mohammed al-Jadaan has acknowledged a funding gap and indicated the possibility of issuing additional debt. He has been involved in a committee led by MBS that analyzed Vision 2030's extensive funding requirements and compared them with the Kingdom's projected revenue.

“There was a gap,” he told the Thmanyah’s Socrates podcast. “We called it the Gap Study.”

He pointed out that delaying and shutting down some projects entirely would close this gap.

Sources familiar with the matter informed Bloomberg that additional projects envisioned under Vision 2030 will be halted or significantly reduced in scope.

“Some of them were strategies where we said to ourselves: we actually do not need to spend on this,” al-Jadaan said.

Read more: Saudi stockpile of US Treasuries hits its lowest in over six years

  • Neom
  • Riyadh
  • The Line
  • Red Sea
  • Saudi Arabia

Most Read

Hamas fighters stand in formation ahead of a ceremony to hand over Israeli captives to the Red Cross in Nuseirat, Gaza Strip, Feb. 22, 2025. (AP)

Hamas reviews Trump’s Gaza ceasefire plan as PIJ rejects

  • Palestine
  • 30 Sep 2025
Iraq at a crossroads: A new war front?

Iraq at a crossroads: A new war front?

  • West Asia
  • 30 Sep 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025

Coverage

All
War on Gaza

Read Next

All
French far-left leader Jean-Luc Melenchon, listens to France Unbowed party parliament member Mathilde Panot during a demonstration after a Gaza-bound aid flotilla was illegally raided by the IOF, Thursday, Oct. 2, 2025 in Paris (AP)
Politics

French MPs on hunger strike after their detainment in 'Israel'

Gaza residents fear trap as Trump’s plan offers little relief
Politics

Flying promises and bombs: Gazans hopeful, yet deeply distrustful

Two years of destruction: Gaza endures war, famine, and displacement
Politics

UNRWA details Gaza's two years under war, famine, and displacement

In this photo provided by the North Korean government, North Korean leader Kim Jong Un, center, visits a military hardware exhibition in Pyongyang, Notrh Korea Saturday, Oct. 4, 2025 (AP)
Politics

DPRK's Kim unveils new advanced weapons at 'Defiance Development 2025'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS