Saudi PIF Slows $1 Trillion Neom, Shifting to Staged Buildout for Profit

3 articles · Updated · mjengohub.co.ke · Aug 20

PIF’s 2025 annual report confirms Neom’s projects remain intact, but each will now be approved in phases based on commercial returns rather than a fixed master schedule.
Years of delays and funding gaps drove the shift: The Line’s roughly $1 trillion plan failed to attract enough private and foreign capital, and large numbers of workers have left the site over the past year.
Aiman Al-Mudaifer, who replaced former Neom CEO Nadhmi Al-Nasr in 2024, has tightened spending controls as PIF redirects priority toward AI infrastructure, logistics and clean energy.
PIF’s finances still improved in 2025, with shareholder return up 5.8%, revenue rising 9% to $120 billion and net profit topping $17 billion, suggesting the retrenchment reflects discipline more than distress.
The reset also follows Saudi Arabia’s withdrawal from hosting the 2029 Asian Winter Games at Neom, while Crown Prince Mohammed bin Salman still aims to use a scaled, more realistic version to diversify the economy beyond oil.