Image Courtesy: Visit Saudi
Saudi Arabia is using the wealth generated by its oil industry to finance one of the world’s most ambitious economic transformations, investing hundreds of billions of dollars into tourism, sports, technology, and futuristic cities in an effort to reduce its dependence on crude exports before global demand begins to decline.
At the center of that strategy is the kingdom’s Public Investment Fund (PIF), the sovereign wealth fund driving Vision 2030, Crown Prince Mohammed bin Salman’s long-term plan to diversify the Saudi economy. In its latest annual report, the PIF said its preliminary assets reached approximately $910 billion by the end of 2025, below its target of $1.09 trillion, while non-oil GDP climbed to nearly $892 billion, also slightly under projections/
Although the targets were missed, the scale of the transformation remains remarkable. Since Vision 2030 launched in 2016, the fund’s assets have grown roughly fivefold. Around 80 percent of its investments remain inside Saudi Arabia, financing projects intended to build entirely new industries that can generate income long after oil revenues begin to decline.
The fund has invested internationally in companies including Uber, Lucid, Accor, Selfridges, and Premier League club Newcastle United. Domestically, it is backing luxury Red Sea resorts, massive tourism developments, and NEOM, the planned $500 billion smart city that includes The Line, a futuristic 170-kilometer linear city designed to operate without cars.
Sports have become another pillar of the strategy. The PIF acquired Newcastle United in 2021, took control of four Saudi Pro League clubs in 2023, and helped attract global stars such as Cristiano Ronaldo, Karim Benzema, Neymar, Roberto Firmino, and Sadio Mané. It has also invested billions in LIV Golf, Formula One, boxing, and secured hosting rights for the 2034 FIFA World Cup.
The strategy has not been without setbacks. Construction of The Line was suspended in 2025 after only about 2.4 kilometers of foundations had been completed, while internal estimates reportedly pushed the project’s full completion toward 2080. The PIF has also scaled back spending on some ventures, including announcing plans to end funding for LIV Golf after the 2026 season.
Despite those adjustments, Saudi Arabia continues to view the PIF as a generational investment rather than a short-term financial vehicle. The success of Vision 2030 will ultimately depend on whether these investments can create a diversified economy capable of sustaining future generations after the world’s reliance on oil begins to fade.
