Saudi Arabia's Public Investment Fund (PIF), which manages assets valued at $925 billion, is preparing to unveil a new five-year strategy this week that signals a notable change in the nation's economic transformation program led by Crown Prince Mohammed bin Salman.
Officials briefed key investors and strategic partners on the 2026-2030 blueprint Monday on the sidelines of a Riyadh conference, according to Reuters, which cited people familiar with the matter. That soft launch preceded the wider announcement expected this week.
The refreshed strategy redirects priorities toward sectors including industry, minerals, artificial intelligence and tourism. At the same time, it trims emphasis on some of the most costly and headline-grabbing mega projects initiated under the crown prince's Vision 2030 agenda - most prominently The Line, a futuristic mirrored city planned to extend roughly 170 km (106 miles) into the desert.
Fund managers and policy advisers describe the shift as the most significant recalibration of Vision 2030 since the agenda was first launched. The revised plan is intended to amplify efforts to draw investment from large international asset managers, reflecting a tighter fiscal backdrop as oil revenues fall short of levels needed to underwrite the kingdom's broad transformation program.
Several of the high-profile developments that attracted early attention have encountered delays and rising costs. Projects named in recent reporting include The Line and the planned Trojena winter sports destination, and more recently a cube-shaped skyscraper project in Riyadh that has been suspended. Cost overruns and slowdowns on these initiatives are cited as factors informing the PIF's new approach.
The PIF's change in direction places greater weight on sectors that are expected to deliver industrial capacity, mineral extraction and technology-driven growth, together with tourism-related development. It also signals an increased focus on mobilizing external capital rather than relying predominantly on state resources.
How the fund balances reduced emphasis on ambitious urban megaprojects with commitments to diversify the economy and attract private capital will be central to evaluating the new strategy once it is formally published.