Kathmandu. The ninth edition of Saudi Arabia’s prestigious Future Investment Initiative Summit kicked off in Riyadh on October 27.
The event, which runs until October 30, brings together the world’s leading financial leaders, government officials and tech giants. However, the massive demonstration comes at a time when the kingdom is facing severe economic and financial pressures.
{{TAG_OPEN_strong_47}Vision 2030: Progress and Challenges
According to official statements, 85% of the objectives of Vision 2030 have either been met or are progressing as planned. Riyadh is currently welcoming 675 companies regionally.
However, there have been some delays and adjustments behind these positive headlines. The most important example is the reduction in the size of the ambitious Neom megacity project. For now, the focus is on preparing the infrastructure for big events like the 2034 World Cup.
Economic Reality: Budget Deficit and Mounting Debt{
Saudi Arabia is experiencing a huge budget deficit. This deficit widened to 2.8% of GDP in 2024 and is projected to remain in the range of 2-2.3% throughout 2025.
Total expenditures: is estimated at $343 billion.
Public Debt: is projected to reach around 30%.
Expansionist spending has continued to support growth and transformative projects. But delays in major projects and low oil prices have forced the government to revamp its borrowing strategies.
Adjustment to large investments
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The scale of Saudi Arabia’s ambitions is enormous, but it has met economic realities. NEOM’s ‘The Line’ super-city project that was designed to house 90 million residents. Its size has been reduced. Currently, only 2.4 km of the section is under construction and its completion is now targeted by 2045. The Public Investment Fund (PIF) has suffered a loss of $8 billion linked to NEOM.
Diplomatic and commercial partnership
FII 2025 has become a magnet for investment commitments and diplomacy. More than $300 million worth of immediate agreements have been signed at the Saudi-US Investment Forum held before the summit. It has set the path for an investment corridor of $ 1 trillion by 2030.
US companies such as Google, Oracle, Salesforce, Advanced Micro Devices, Uber and DataVolt have pledged to invest up to $80 billion.
Crown Prince Mohammed bin Salman has confirmed that the United States will target 40% of the public investment fund’s global investment.
Investor sentiment and challenges
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Top global CEOs, including Jamie Dimon and Larry Fink, gathered in Riyadh to signal optimism about Saudi Arabia as an investment destination. However, there is also caution among investors. They are concerned about the state’s unclear decision-making, lack of efficiency, and continued reliance on public spending.
The official theme of the conference is ‘Key to Prosperity: Opening New Frontiers of Development’. It includes Saudi Arabia’s efforts to reform, diversify and maintain investment attractiveness amid turmoil in the oil market.
