In a shocking revelation that underscores the fragility of Saudi Arabia’s economic policies, Masayoshi Son, CEO of SoftBank, has admitted that his partnership with Mohammed bin Salman failed to deliver the expected returns. Even more concerning, Son acknowledged that he still owes money to Saudi Arabia’s Public Investment Fund (PIF), exposing yet another financial miscalculation by the Saudi leadership. This admission raises serious concerns about the management of the Saudi sovereign wealth fund, the effectiveness of Vision 2030, and whether the kingdom’s ambitions to become an economic powerhouse are nothing more than empty promises.
How Did the Partnership Begin?
In 2016, Mohammed bin Salman, then the Deputy Crown Prince, announced a historic investment of $100 billion in SoftBank’s Vision Fund, a technology-focused investment initiative aimed at backing high-growth startups worldwide. Of this amount, Saudi Arabia committed $45 billion, making it the largest single investor in the fund.
At the time, this investment was marketed as a strategic step toward diversifying Saudi Arabia’s economy, reducing its dependence on oil, and positioning the kingdom as a leader in global tech innovation. However, seven years later, this ambitious vision has not materialized, and what was once hailed as an investment breakthrough has turned into a financial nightmare.
Massive Losses and a Failing Strategy
Despite the enormous hype surrounding SoftBank’s Vision Fund, the results have been disastrous. According to financial reports, SoftBank recorded net losses of $9 billion in 2022 alone, with many of its investments crumbling under market pressures.
Several high-profile companies backed by the fund collapsed or suffered significant devaluation, including:
- WeWork, once valued at $47 billion, later declared bankruptcy.
- Opendoor, a real estate tech company, saw its stock value plummet by over 80%.
- Careem, a ride-hailing service in the Middle East, failed to provide the anticipated returns.
With such heavy losses, SoftBank has been unable to deliver the promised financial gains to its investors—especially Saudi Arabia.
Masayoshi Son’s Stunning Admission
In a recent interview, Masayoshi Son admitted that the fund failed to meet its expectations and revealed that he still owes money to Saudi Arabia’s PIF. This statement is an embarrassment for Mohammed bin Salman, who once promoted this investment as a symbol of Saudi economic leadership.
Son, known for his bold investment style, acknowledged that the fund had not produced the returns he had hoped for, confirming that Saudi money may never yield the anticipated profits. This debunks the Saudi government’s narrative that its investments in SoftBank were a sign of its global financial influence.
This failure highlights a pattern of mismanagement in Saudi investment policies. Despite the kingdom’s enormous financial resources, it continues to pour billions into poorly planned ventures, further undermining confidence in Vision 2030.
Another Costly Failure for Vision 2030
SoftBank’s Vision Fund was supposed to be a cornerstone investment of Vision 2030. Instead, it has become yet another example of Saudi Arabia’s reckless financial decisions. Instead of securing massive returns, Saudi Arabia now faces mounting losses and a debt-ridden investment portfolio.
But this is not an isolated case—other high-profile Saudi investments have also suffered setbacks:
- NEOM, The Line, and the Red Sea Project—all facing delays, financial struggles, and skepticism from investors.
- Ballooning national debt, with the kingdom increasingly relying on borrowing to fund its ambitious projects.
- A deteriorating financial outlook, with rising concerns about Saudi Arabia’s ability to sustain its economic expansion.
As Saudi Arabia struggles to secure foreign investments, it is forced to take on more debt, adding even more pressure to an already fragile economic framework.
Where Did $45 Billion Go?
The biggest question now is: How did Saudi Arabia’s $45 billion investment evaporate?
This enormous sum could have been used to develop Saudi Arabia’s domestic industries, support small businesses, improve education, or build critical infrastructure. Instead, it was funneled into a failing tech fund, producing no tangible benefits for the Saudi economy.
With rising national debt and growing financial risks, Saudi Arabia’s decision to invest such a colossal sum in a failing venture raises serious doubts about the kingdom’s economic leadership.
Why Does Saudi Arabia Keep Failing?
Despite its enormous wealth, Saudi Arabia’s economic decision-making remains deeply flawed. The kingdom continues to invest blindly in overhyped, high-risk ventures without proper planning or risk assessment.
As failures mount, the Saudi regime tries to shift public focus by announcing new flashy projects instead of addressing its existing economic problems. The reality, however, cannot be hidden forever—Vision 2030 is proving to be a failed experiment, and Saudi Arabia is running out of time to course-correct.
Conclusion: Saudi Arabia’s Investment Mirage
Mohammed bin Salman has spent billions trying to convince the world that Saudi Arabia is becoming an economic powerhouse. Yet, behind the glossy PR campaigns, the reality is starkly different—failed investments, growing debt, and an economic strategy that is crumbling under its own weight.
As more failures come to light, trust in Saudi economic leadership continues to erode, both locally and internationally. No amount of lavish spending or media propaganda can change the simple truth: Vision 2030 is built on financial illusions, and Saudi Arabia’s economic future is now more uncertain than ever.
