DUBAI: Saudi Arabia’s nearly $1 trillion sovereign wealth fund, the Public Investment Fund (PIF), has taken an $8 billion write-down on some of its most high-profile gigaprojects — vast developments meant to reshape the kingdom’s economy and image.
PIF valued gigaprojects on its books at 211 billion riyal ($56.24 billion) as of end-2024, over 12% lower than the 241 billion riyal in 2023, the company said in its 2024 annual report released Wednesday.
The accounting move reflects cost overruns, delays and shifting market conditions for projects such as NEOM, the desert mega-city nearly the size of Belgium intended to house nearly nine million people on the Red Sea.
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NEOM has repeatedly faced implementation challenges and delays, with sources telling Reuters the project has been scaledback as the kingdom prioritises infrastructure essential to hosting global sporting events, like the 2034 World Cup.
The revision is a stark acknowledgment that the kingdom’s transformation blueprint is running up against financial and practical realities, coming at a sensitive time for Crown Prince Mohammed bin Salman’s Vision 2030 agenda, which hinges on diversifying Saudi Arabia’s oil-dependent economy.
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