Saudi Arabia Refocuses $925 Billion Fund After Gigaproject Delays

01 Dec 2025 • 1 min read

Anna Fischer

Construction Content Writer

Saudi Arabia is shifting its $925 billion sovereign wealth fund, the Public Investment Fund (PIF), away from its heavy focus on real estate gigaprojects that have been central to the country's development plans over the past decade.

These projects, part of Crown Prince Mohammed bin Salman’s (MbS) Vision 2030, included ambitious plans like NEOM, a futuristic city on the Red Sea, and ski resorts in the northern mountains. However, many of these initiatives have faced significant delays.

While previous strategies focused on large-scale transformative projects, that were often delayed by significant challenges, the new strategy will prioritize more practical sectors:

Logistics
Mineral exploitation
Religious tourism
Emerging technologies, such as artificial intelligence (AI)

At the Future Investment Initiative summit, PIF Governor Yasir Al-Rumayyan hinted at this strategic shift, outlining six key “ecosystems” that will guide the fund’s future investments, including travel, urban development, manufacturing, and renewable infrastructure.

This repositioning comes as PIF faces mounting pressure to deliver tangible financial results. Its average annual return has decreased to 7.2%^[?], highlighting the difficulties of financing mega-projects.

Notably, the fund is exploring opportunities in rare earth minerals, enhancing religious tourism infrastructure, and positioning Saudi Arabia as a global logistics hub. The AI sector, led by the PIF-owned company Humain, is another key growth area.

While scaling back international investments and reassessing some mega-projects, Saudi Arabia remains committed to its transformative vision. The updated strategy reflects a more measured and pragmatic approach to economic diversification.

With the current five-year strategy coming to an end, PIF stands at a pivotal moment, reimagining its global investment strategy and setting the stage for a new phase of growth and sustainability.

Anna Fischer

Construction Content Writer

Anna has a background in IT companies and has written numerous articles on technology topics. Now, building up her expertise in construction and legal regulations, Anna expands the horizons of our blog and delights her readers with insightful articles.

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