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Mon, 25 May 2026

Mon, 25 May 2026 How Saudi Arabia's spending spree reached the end of the line

MBS's Vison 2030 project seemed the stuff of science fiction. Now reality has bitten
Key points: 1. Re-assessment of Vision 2030: The Saudi leadership is reassessing the plan, which was already under way before the conflict. 2. Impact of war: The war has caused further confusion over the future direction of Vision 2030 and affected several areas where the Saudis wanted to invest, including AI, tourism, manufacturing, and mining. 3. Prioritization: The Saudi leadership is prioritizing projects that are more credible and executable, rather than focusing on big announcements. 4. Investor confidence: Disciplined prioritization can increase investor confidence, according to Thamer Shaker, a specialist in the Gulf region's political and economic dynamics. 5. Mega-projects: Several mega-projects, such as The Cube and Neom, have been put on hold or canceled due to lack of funding or strategic confusion. 6. Dissent and social changes: Politically, dissent has been punished severely, while socially, there have been big changes in the feel of living in cities like Riyadh. 7. Economic impact: The mega-projects were intended to drive the country forward into a future where private and foreign investment matched the immense oil wealth of the state. Quotes: 1. "For them, the fact that the Saudis at least partly admit their mistakes and talk about them, that's definitely a positive sign." - Mate Szalai 2. "In many cases, disciplined prioritisation can actually increase investor confidence… The conversation internationally is increasingly shifting from 'how big are the announcements?' to 'how credible is the execution model?'" - Thamer Shaker Relevance: The article is relevant for anyone interested in international politics, economics, and business. It provides an analysis of a significant development in the Middle East region, which has implications for global trade, investment, and economic growth. Target audience: 1. Business professionals: The article will be of interest to business professionals who invest or operate in the Gulf region. 2. Policy makers: Policy makers and government officials involved in international relations and economics will also find the article relevant. 3. General readers: Anyone interested in understanding the complexities of global politics, economics, and business will benefit from reading this article.