As Saudi Crown Prince Mohammed bin Salman (MBS) pushes forward with his ambitious projects to modernize the kingdom, concerns are growing over his economic decisions, which critics say are marked by wasteful spending on failing initiatives. Despite Saudi Arabia’s ongoing economic challenges, MBS has allocated billions of dollars to technology, artificial intelligence (AI), and gaming ventures, raising questions about the real impact of these investments on the country’s future.
$20 Billion on AI: Surveillance or Progress?
One of the most significant expenditures by MBS is the $20 billion allocated to the Saudi Data and Artificial Intelligence Authority (SDAIA) for AI development. While AI could theoretically boost innovation and modernization, critics argue that this massive sum is being used primarily for surveillance, particularly targeting dissidents and activists. Allegations suggest that instead of elevating the nation’s technological standing, these resources are directed towards monitoring opposition to MBS’s rule.
Moreover, the crown prince’s decision to partner with Nvidia, a tech company banned by the United States, complicates matters further. The U.S. ban on Nvidia raises doubts about the effectiveness of these AI investments, as the company may struggle to implement advanced technologies like image recognition and speech analysis. This has led to growing skepticism about the long-term value of these projects.
Failed Investments and Financial Mismanagement
This isn’t the first time MBS has faced criticism for pouring Saudi Arabia’s wealth into questionable ventures. The Saudi Public Investment Fund (PIF), controlled by the crown prince, recently increased its stake in Selfridges, a struggling British retail company on the brink of bankruptcy. The decision to pour money into a company facing severe financial difficulties highlights concerns about poor financial oversight and mismanagement.
Similar investments have led to massive losses, further straining the kingdom’s economy. According to experts, these misguided decisions reflect a broader issue: the lack of accountability in how Saudi Arabia’s funds are spent under MBS’s leadership.
Gaming and Entertainment: Distraction Over Development?
In addition to technology investments, MBS has turned his attention to gaming and esports, a sector in which he personally holds a strong interest. The Saudi government has spent $8 billion on gaming initiatives, including the development of Savvy Games Group and the acquisition of gaming companies for over $1.5 billion.
One of MBS’s most high-profile ventures is the construction of a $500 million esports and gaming city in Riyadh, set to open in 2024. This project, aimed at positioning Saudi Arabia as a global hub for competitive gaming, raises questions about the crown prince’s priorities. Critics argue that these initiatives are less about creating economic growth and more about enhancing MBS’s image, given his personal enthusiasm for video games like Call of Duty.
While esports may bring some international attention to the kingdom, the broader economic benefits remain unclear. Many believe that these projects are distractions, designed to divert attention from Saudi Arabia’s deeper economic problems, such as unemployment and poverty.
Economic Challenges Amid Extravagant Spending
Despite MBS’s grand visions, the Saudi economy faces significant hurdles. Unemployment remains high, and many recent graduates struggle to find jobs. While the crown prince has emphasized diversifying the economy beyond oil, his efforts to expand the non-oil sector have not produced the promised results. The kingdom’s wealth has been funneled into risky ventures, while citizens continue to deal with rising poverty rates and a widening wealth gap.
Economic experts have pointed out that MBS’s approach to reform lacks clear direction and accountability. By investing in failing companies and personal passion projects, the crown prince is diverting valuable resources away from critical sectors like education and healthcare, which could directly benefit Saudi citizens.
The Need for Accountability and Reform
As Saudi Arabia continues to grapple with economic challenges, the crown prince’s extravagant spending raises serious concerns about the kingdom’s future. While MBS may view AI and gaming as key components of his Vision 2030 strategy, these investments appear to lack clear benefits for the broader Saudi population. Instead, they seem more focused on boosting MBS’s personal image on the global stage.
For Saudi Arabia to achieve meaningful economic progress, experts argue that greater transparency and accountability are needed in how the nation’s wealth is managed. Investing in sustainable projects that provide long-term benefits for Saudi citizens should be a priority, rather than pouring billions into risky ventures with uncertain outcomes.
Until then, MBS’s spending spree will likely continue to draw criticism, as the kingdom’s economic future remains uncertain amid wasteful spending and mismanaged projects.
As Saudi Arabia embarks on its journey toward modernization under Vision 2030, the question remains: can the kingdom afford to continue spending billions on AI, gaming, and failing companies while its citizens struggle with unemployment and rising poverty? For now, MBS’s spending decisions appear more focused on building his personal legacy than addressing the real needs of the Saudi people. The time for reform and accountability is long overdue if Saudi Arabia is to truly prosper.
