Saudi Vision 2030 Projects Undergo Major Reassessment
The kingdom reexamines its ambitious Vision 2030 projects, scaling back some initiatives while focusing on adapting to current economic challenges
Eight years after Crown Prince Mohammed bin Salman introduced Saudi Vision 2030, a strategy some critics have labeled as “imaginary,” the ambitious plan continues to face scrutiny.
Recent media reports have highlighted updates and reassessments of various projects under Vision 2030. Notably, The Line, a city project launched by the crown prince in 2022, was originally intended to span 170 kilometers and house 9 million people. However, only 2.4 kilometers are expected to be completed soon, with the rest potentially being built later.
The $1.5 trillion Neom project, launched in October 2017 as the cornerstone of Vision 2030, is also facing setbacks. Reports from Saudi economic sources indicate that 70% of the plans for this urban area have been abandoned.
An anonymous source revealed to The Media Line that Saudi Arabia has significantly reduced the workforce in Neom, leading to mass layoffs of foreign workers over the past two years. Local employees have been reassigned to other companies, and the scale of work on the project has notably decreased from the original plans.
Jordanian economist Raja Al-Hujairi told The Media Line that these “imaginary” projects are undergoing complete reassessment. She acknowledged that cities like Neom and The Line would still be developed, but “not in the form that was originally announced.”
These are projects that exceed Saudi Arabia’s budget by far, and no country in the world has been able to implement them
Al-Hujairi further noted that the projects were primarily announced to attract significant investments to Saudi Arabia. “But of course these are projects that exceed Saudi Arabia’s budget by far, and no country in the world has been able to implement them, and Saudi Arabia will not be able to do so, either.”
Finance Minister Mohammed Al-Jadaan stated that Saudi Arabia was not “arrogant” about adjusting the scope of its mega projects under Vision 2030 in response to changing circumstances.
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Al-Jadaan added that “the kingdom will adapt to the current economic and geopolitical challenges and will work to ‘reduce’ or ‘accelerate’ some of the projects being implemented within the framework of the Vision 2030 program.”
Meanwhile, in preparation for hosting the 2034 FIFA World Cup, Saudi Arabia plans to construct 11 new stadiums across 10 cities, along with 230,000 hotel rooms and thousands of kilometers of train tracks to connect its cities and link with other GCC countries.
Saudi Arabia secured $2.53 billion in foreign direct investment during the first quarter of 2024, compared to $19.3 billion in 2023. However, this remains lower than the $30 billion in investments attracted by its competitor, the United Arab Emirates.
These figures fall short of the ambitious targets set by Vision 2030, which aimed for annual investments exceeding $40 billion.
Al-Hujairi cited competition with the United Arab Emirates, noting that “Dubai has always announced huge projects such as the Burj Khalifa and other giant projects, but they were more realistic and were able to achieve them. Saudi Arabia wanted to have bigger projects but it was unable to do so.”
The revitalization of the Saudi Football League is another Vision 2030 project under review. The kingdom has reportedly spent over $2 billion in the past two years to attract international players through the Public Investment Fund.
Restudying projects and their feasibility is flexibility and an advantage in the economy, not a flaw
Saudi economic analyst Mohammed Al-Abdullah told The Media Line, “Restudying projects and their feasibility is flexibility and an advantage in the economy, not a flaw.” He pointed out that when the Neom project was announced in 2017, the global economy was different, and the impact of the COVID-19 pandemic had not yet been felt.
Al-Abdullah further explained that as global economic trends have shifted, it is natural for some major Saudi projects to evolve. He emphasized that projects like Neom, The Line, Qiddiya, and Riyadh Square were still in progress, but are being reassessed based on new data.
Fahd Al-Yousef, a former real estate project manager in Saudi Arabia, told The Media Line: “Real estate trends have changed, and the Saudi government is now focusing on new global economic trends.”
Al-Yousef suggested that delaying some projects is reasonable, especially given the priority of preparing for the 2034 World Cup.
He expressed confidence that when Saudi Arabia hosts the World Cup in 2034, the global community will witness the country’s transformation, leading to increased investment and the eventual realization of all its projects.
The Saudis will not abandon their projects, only reprioritize and schedule their implementation dates
Al-Yousef argued that “reprioritizing the Saudi economy is a good thing. The Saudis will not abandon their projects, only reprioritize and schedule their implementation dates.”
