Saudi Arabia is preparing to redirect its USD 925 billion sovereign wealth fund, the Public Investment Fund (PIF), away from real estate-led megaprojects that have defined its development priorities over the past decade, a source familiar with the matter said.

Repeated delays in NEOM, which targets a population of nine million, and other projects have prompted a strategic rethink. According to the source, the new direction is intended to secure more sustainable and immediate returns by prioritising sectors like logistics, minerals, and religious tourism. Investments in artificial intelligence and data centres powered by Saudi Arabia's vast energy reserves are also being prioritised.

Work on NEOM's "THE LINE", an envisioned 170-kilometre-long indoor city, has been scaled back to focus on a 2.4-kilometre stretch that includes a World Cup stadium. The Saudi government continues to rely heavily on global consultancies, including PwC and McKinsey, for Vision 2030 implementation, while also collaborating with international hotel operators such as Marriott International, Hyatt, Hilton, and St Regis through the Red Sea Development Company.

Read the full story at Prop News Time