Riyadh - Mubasher: The Saudi Public Investment Fund is preparing to reduce the budgets of some local projects next year by up to 20%, for the second time in a row, in light of the increase in total spending and the change in the Kingdom’s economic priorities.

According to sources familiar with Bloomberg, the budgets of projects that have not yet been announced will be re-evaluated, with the possibility of accelerating the implementation of other projects .

The moves come as the fund prepares to present its 2025 spending plans to its board next month, which will make final decisions on financial allocations.

Sources indicated that some projects are looking for external financing to compensate for any expected reductions .

The Fund confirmed in an official statement that “financing of all previously announced projects will continue without delay,” noting the acceleration of the pace of capital injection with the expansion and maturity of the Fund’s projects and companies, and the availability of broader financing options including private investments and capital markets .

The fund, led by Crown Prince Mohammed bin Salman, plays a key role in implementing Vision 2030, which aims to diversify the Saudi economy away from oil. The budget review reflects shifting national priorities to address challenges such as lower oil prices and weaker foreign direct investment in some sectors .

The need to re-evaluate spending plans has also increased after the Kingdom won the right to host major events such as the 2027 Asian Cup, the 2029 Asian Winter Games, and Expo 2030, in addition to its bid to host the 2034 World Cup. The fund is leading the infrastructure and development projects required for these international events .

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