JAKARTA – Saudi Arabia’s leadership has indicated it is prepared to reassess and potentially abandon some of its most ambitious infrastructure initiatives linked to the Vision 2030 economic transformation agenda, according to recent statements from the kingdom’s top financial official.

Finance Minister Mohammed al-Jadaan made clear that Riyadh harbors no reluctance about modifying or scrapping announced developments if circumstances warrant such action. Speaking at a budget presentation in the capital, he emphasized the government’s pragmatic approach to project management.

The minister’s frank assessment follows multiple reports suggesting the kingdom is reconsidering the scope of several high-profile ventures, particularly the Neom development zone along the Red Sea coast. This massive undertaking encompasses luxury hospitality facilities, winter sports infrastructure, and The Line—a futuristic linear metropolis originally planned to stretch 170 kilometers.

Recent reporting has revealed significant downsizing of The Line, which represents the flagship component of Neom and reflects Crown Prince Mohammed bin Salman’s bold vision for urban development. Additionally, concerns have emerged about whether the Trojena mountain resort will be ready to host the 2029 Asian Winter Games, with internal discussions reportedly exploring backup hosting options.

Strategic Pivot in Focus

Despite potential cutbacks on some spectacular projects, the kingdom continues advancing initiatives where it holds natural competitive strengths. These include artificial intelligence development, benefiting from inexpensive energy resources, and tourism expansion—building on Saudi Arabia’s existing role as custodian of Islam’s most sacred sites in Mecca and Medina.

The government is proceeding with major enhancements around the Grand Mosque in Mecca, including construction of high-rise structures for worship, lodging, and commercial purposes.

Al-Jadaan stressed that fiscal discipline doesn’t necessarily mean reduced overall expenditure, but rather reallocation of resources toward higher-priority objectives.

Fiscal Outlook Improves

The minister’s comments accompanied the release of Saudi Arabia’s 2026 budget projections, which forecast a narrowing budget gap—dropping to 3.3 percent of GDP from the current year’s 5.3 percent.

The kingdom maintains relatively low debt levels compared to other developing economies, with a debt-to-GDP ratio of approximately 30 percent. Combined with its vast petroleum reserves, this financial position enables continued borrowing from international markets on favorable terms.

Al-Jadaan characterized the deficit as intentional, noting that policy decisions will maintain a budget shortfall through 2028. He highlighted that recent budgetary consistency masks an important shift in priorities regarding spending allocation rather than total amounts.

Original Article:

Middle East Eye. (2025, December 5). Saudi Arabia has ‘no ego’ to prevent it from cancelling megaprojects, finance minister says.  Retrieved from https://www.middleeasteye.net/news/saudi-arabia-has-no-ego-prevent-it-cancelling-megaprojects-finance-minister-says