In a move that has sparked significant debate, Crown Prince Mohammed bin Salman (MBS) of Saudi Arabia has reportedly spent $3.6 billion through the Public Investment Fund (PIF) to acquire nine luxury jets. Intended for lease to Saudi elites and visiting dignitaries, these aircraft add to a list of high-end purchases, including recent deals for electric aircraft and sports facilities. While such spending aims to elevate Saudi Arabia’s international image, critics argue that it starkly contrasts with the financial difficulties faced by ordinary Saudi citizens, who are coping with increased taxes, limited public services, and austerity measures.
Luxury Acquisitions Amid Austerity for the Public
The jets were bought by Avolis, a PIF-owned aircraft leasing company, which recently purchased the used planes for business and entertainment purposes. MBS’s investments in luxury transportation, alongside high-profile purchases like the $600 million spent on German electric aircraft for personal and tourism use, raise concerns about government priorities. Critics say that these funds could be directed toward improving essential infrastructure, education, and healthcare services, sectors that have seen reduced public investment in recent years.
At the same time, rising living costs and austerity measures affect everyday Saudis. With increased taxes and a tightened economy, Saudi citizens face economic pressures as luxury spending grows unchecked. Many have taken to informal work in hopes of meeting basic needs, while others endure long waits for job opportunities amid high youth unemployment.
Financial Struggles of State-Owned Enterprises
Reports indicate that several PIF-owned companies, including “The Helicopter Company,” are facing financial setbacks. The Helicopter Company, a domestic airline service also used for tourism and elite transportation, recently borrowed $213 million to offset operational losses. With high costs and lower-than-expected demand for luxury transportation, the financial struggles of these ventures highlight the challenges in balancing economic diversification with financial sustainability.
Unpaid Defense Debts
Amid the focus on luxury spending, Saudi Arabia reportedly has outstanding defense debts to the U.S. Department of Defense, totaling $15 million. This debt, incurred from in-flight refueling provided to Saudi air forces between 2015 and 2018 for operations in Yemen, remains unpaid despite the wealth accumulated by the Saudi royal family, estimated at $1.4 trillion. This issue raises questions about government spending priorities and the ability to allocate resources for both essential obligations and prestige projects.
Investments in Entertainment as Basic Infrastructure Declines
In addition to transportation spending, MBS has invested heavily in entertainment and sports projects to draw international attention and boost tourism. Projects like Boulevard City in Riyadh, recently allocated an additional $500 million for upgrades, are promoted as part of MBS’s Vision 2030 initiative to modernize Saudi Arabia. However, critics argue that these developments serve the wealthy while basic infrastructure in cities like Mecca and Medina remains underfunded. During recent rainstorms, streets in these cities experienced severe flooding due to outdated drainage systems, highlighting gaps in essential urban planning.
Balancing International Image and Domestic Welfare
MBS’s spending on high-profile luxury assets and entertainment projects reflects his vision for Saudi Arabia as a global power and cultural destination. However, this approach has led to growing criticism at home, where citizens question whether public funds should prioritize luxury and entertainment or address urgent social and economic needs.
As Saudi Arabia moves toward its Vision 2030 goals, balancing global aspirations with domestic stability will be crucial. Addressing the needs of Saudi citizens by investing in services that benefit all—such as healthcare, education, and infrastructure—could be the key to ensuring that the kingdom’s progress includes all its people.
