Saudi Arabia’s PIF writes down $8 billion on gigaprojects amid challenges

Saudi Arabia's Public Investment Fund (PIF), a nearly $1 trillion sovereign wealth fund, has written down $8 billion on its high-profile gigaprojects, including the ambitious NEOM desert mega-city. The PIF valued its gigaprojects at 211 billion riyals ($56.24 billion) by the end of 2024, down 12% from 241 billion riyals in 2023.

The adjustment reflects cost overruns, delays, and shifting market conditions for projects like NEOM, intended to reshape the kingdom's economy and image. NEOM, the desert city planned to house nine million people, has faced implementation challenges and delays, with reports suggesting the project has been scaled back. The revision highlights the financial and practical difficulties Saudi Arabia faces in its Vision 2030 transformation.