50 Billion SAR and Counting: Mohammed bin Salman’s Extravagant Spending Drains Saudi Arabia’s Wealth

Saudi Arabia, traditionally associated with wealth and stability due to its vast oil reserves, is facing mounting economic challenges under Crown Prince Mohammed bin Salman’s leadership. Critics argue that the Crown Prince’s policies are driven by personal ambitions to enhance his global image, rather than addressing the real economic and social needs of the kingdom. His extravagant spending on entertainment, sports sponsorships, and ambitious megaprojects has sparked widespread concern about fiscal mismanagement and its long-term implications for Saudi citizens.
Extravagant Spending on Entertainment Projects
Since Mohammed bin Salman assumed power, the Public Investment Fund (PIF), which he directly oversees, has become the primary vehicle for financing large-scale entertainment initiatives. One such example is the Saudi Entertainment Ventures Company (SEVEN), which recently announced plans to spend 50 billion SAR on 14 entertainment destinations across the kingdom. The first project, set to open in Jazan, includes a cinema complex, a challenge park, and waterfront attractions.
While these projects are marketed as transformative for Saudi Arabia’s cultural landscape, critics argue they provide minimal economic benefits to ordinary citizens. The heavy focus on entertainment is seen as an attempt to shift public attention away from pressing issues such as unemployment, rising poverty rates, and a lack of investment in critical infrastructure.
Economic Mismanagement and Rising Debt
Despite Saudi Arabia’s reputation as an oil-rich nation, the country has increasingly relied on domestic and international borrowing to finance its expenditures. According to the International Monetary Fund (IMF), Saudi Arabia needs to prioritize fiscal discipline to reduce its growing dependence on loans. Yet, under Mohammed bin Salman, borrowing has reached unprecedented levels, with loans funneled into speculative projects such as Neom and The Line—initiatives widely criticized for being unrealistic and failing to deliver tangible results.
Saudi Arabia’s Ministry of Finance has projected that public debt will rise to 1.3 trillion SAR by 2025, a 100 billion SAR increase from the current year. This trajectory raises concerns about the sustainability of the kingdom’s financial policies and its ability to weather future economic shocks.
The Rise of Sportswashing
In addition to entertainment projects, Saudi Arabia has heavily invested in sports sponsorships to bolster its global image. Critics accuse Mohammed bin Salman of using “sportswashing” to deflect international scrutiny and distract citizens from domestic challenges. High-profile expenditures include:
A €66 million sponsorship of La Liga over three seasons.
An €8 million sponsorship deal with the Egyptian and African football associations.
A £25 million annual sponsorship of Newcastle United, which is owned by the PIF.
$100 million annually by Aramco for FIFA events, including the 2026 Men’s World Cup and the 2027 Women’s World Cup.
These investments have raised eyebrows, given the kingdom’s ongoing economic struggles. While they may enhance Saudi Arabia’s global profile, they do little to address the immediate needs of its population.
Artificial Intelligence and Futuristic Projects
In a bid to rival regional competitors like the UAE, Saudi Arabia has announced plans to invest $100 billion in artificial intelligence (AI) initiatives. The PIF has also sought stakes in global AI companies, such as Anthropic, which counts Amazon as a major investor. While these moves align with Vision 2030’s goal of diversifying the economy, many question the wisdom of allocating such vast resources to futuristic ventures while neglecting pressing economic challenges.
Worsening Economic Indicators
The economic realities in Saudi Arabia paint a stark contrast to the optimism surrounding these projects. Unemployment rates have risen, poverty levels have increased, and the kingdom’s dependence on oil revenues remains unchanged. These issues are compounded by reports of corruption and mismanagement, with public funds allegedly being funneled into speculative and vanity projects rather than productive investments.
Saudi Arabia’s fiscal challenges have also drawn concern from international institutions such as the World Bank. The economic pressures have led to budget deficits and growing public debt, signaling deeper structural issues within the kingdom’s economy.
Public Reaction and Future Implications
The Saudi public has increasingly voiced dissatisfaction with the government’s spending priorities. Critics argue that Mohammed bin Salman’s focus on entertainment and global image-building comes at the expense of addressing social inequalities and improving living standards. The lack of tangible benefits from initiatives like Neom and The Line has only fueled skepticism about Vision 2030’s feasibility.
In conclusion, Saudi Arabia’s current economic trajectory under Crown Prince Mohammed bin Salman raises significant concerns about fiscal responsibility and long-term stability. While entertainment and sports sponsorships may temporarily elevate the kingdom’s global profile, they do little to address the fundamental economic and social challenges facing its citizens. For the kingdom to achieve sustainable growth, a shift in priorities toward addressing unemployment, poverty, and infrastructure development is urgently needed.