Saudi gigaprojects take $8 billion hit in reality check for diversification efforts https://t.co/aX4SZFbVhS https://t.co/aX4SZFbVhS
Saudi wealth fund loses $8 billion, but megaprojects continuing https://t.co/x1qmhfwRHh
Saudi Arabia's massive wealth fund sees $8 billion writedown in megaprojects https://t.co/qLckrn1ROV
Saudi Arabia’s Public Investment Fund recorded an $8 billion write-down on its flagship domestic megaprojects for 2024, according to the sovereign wealth fund’s annual report released on 14 August. The charge reduced the book value of the so-called gigaprojects—including the $500 billion-plus NEOM development on the Red Sea—to 211 billion riyal ($56 billion), a 12% decline from a year earlier. The markdown underscores mounting cost overruns, construction delays and shifting market conditions that have forced the kingdom to scale back timelines for several Vision 2030 schemes such as The Line, a 170-kilometre linear city planned within NEOM. Analysts say the adjustment reflects a bid to curb resource misallocation as lower oil prices widen the budget deficit and trim the government’s capacity to funnel fresh capital into domestic infrastructure. Despite the impairment, PIF’s assets under management jumped 19% to roughly $913 billion, buoyed by additional transfers of Saudi Aramco shares. The fund’s annualised return since 2017 slipped to 7.2% from 8.7% as weaker energy markets dented dividend flows. PIF also broadened its funding base, issuing about $10 billion in public bonds and raising a further $7 billion privately, while trimming the share of international holdings in its portfolio to 17% from 20%.
