How Saudi Arabia's spending spree reached the end of the line
Summary
Saudi Arabia launched a huge plan called Vision 2030 to transform its economy and society by building massive new cities and resorts, funded by its large oil wealth. However, due to lower oil prices before the recent Middle East war and less foreign investment than expected, many of these projects are being scaled back, delayed, or canceled.Key Facts
- Vision 2030 was started by Crown Prince Mohammed bin Salman to reduce Saudi Arabia’s dependence on oil.
- The plan included huge projects like NEOM, a futuristic city stretching over 100 miles.
- The Line, a central NEOM project, is being scaled down from the original ambitious design.
- The winter resort Trojena was planned for year-round skiing but is now less ambitious; the Asian Winter Games it was supposed to host moved to Kazakhstan.
- The Cube, a giant building project costing about $50 billion, has been canceled.
- The LIV Golf tour, a sports project costing around $5 billion, has not delivered financial or reputational benefits.
- Falling oil prices before the Middle East war and the recent regional conflict reduced Saudi Arabia’s money for these projects.
- Foreign investment in these expensive plans has been much lower than expected.
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