Crown Prince Mohammed bin Salman’s ambitious Vision 2030 initiative was supposed to transform Saudi Arabia into a global hub of innovation and development, diversifying the economy away from its reliance on oil. However, eight years into the program, questions are mounting about whether the prince’s costly projects are delivering any real benefits for the Saudi people. According to recent reports, over $1.3 trillion has been spent on various high-profile ventures under Vision 2030, yet the results remain elusive, and the kingdom faces a growing budget deficit.
Billions Spent on Vanity Projects
One of the most prominent examples of MBS’s spending spree is Neom, the futuristic city being built in northwestern Saudi Arabia. The project, which includes The Line, a pair of mirrored skyscrapers stretching over 100 miles, has absorbed $28.7 billion of the kingdom’s funds. Despite this, many question whether such a grand vision is even practical, given the extreme conditions of the desert and the unproven technology the project relies on.
In addition to Neom, MBS has invested heavily in entertainment and tourism, including the Diriyah Gate project, which has so far cost $12 billion, and the Qiddiya Entertainment City in Riyadh, where $7 billion has been poured into building a massive entertainment complex. These projects are intended to attract global tourists and diversify the economy, but critics argue they are more focused on spectacle than substance.
The Real Cost of Vision 2030
Beyond the headline-grabbing projects, the real cost of Vision 2030 lies in the questionable investments being made across the country. For instance, MBS has allocated $110 billion to build 362,000 hotel rooms across Saudi Arabia. In the region of Jazan, the Public Investment Fund (PIF), which MBS controls, is spending $8 billion on hotels and resorts—reportedly even constructing a private palace for the crown prince at the state’s expense.
One particularly eyebrow-raising project is the planned Forbes World Tower in Egypt’s new administrative capital. The skyscraper, which will stand 50 stories high and cost $1 billion, is scheduled for completion by 2030. It will boast advanced cybersecurity systems, high-speed elevators for VIPs, and a helicopter landing pad. Despite the grand plans, the tower comes at a time when Egypt is struggling to market and sell luxury properties in other new developments due to high costs and low demand.
Sportswashing at a High Price
In an effort to boost Saudi Arabia’s global image, MBS has also turned to sports, spending billions on stadiums and sports events. His latest plan involves the construction of 11 football stadiums across the kingdom, in preparation for a bid to host the 2034 FIFA World Cup. The estimated cost of these stadiums is a staggering $30 billion, sparking concerns that MBS is using sports as a way to divert attention from human rights abuses and other domestic issues—what many critics call “sportswashing.”
Despite the immense spending on sports and entertainment, Saudi Arabia is facing a budget deficit of 27.7 billion riyals in the first half of 2024. While government revenues have risen, so have expenses, driven largely by costly projects that do not appear to be yielding significant economic benefits.
Financial Mismanagement and Public Backlash
As the kingdom continues to pump money into large-scale projects, many question the long-term impact of this spending. The Saudi government has allocated nearly 21% of its budget to defense and entertainment in recent years, far outpacing investments in education and healthcare. Between 2016 and 2020, military and entertainment spending reached $273 billion, while crucial sectors like education and public health struggled to secure sufficient funding.
Economists argue that much of the financial mismanagement stems from MBS’s obsession with image-building. His adviser, Turki Al-Sheikh, has funneled millions into film productions featuring Egyptian actors in a bid to promote Saudi Arabia’s entertainment sector. However, these ventures have failed to generate profits, raising further questions about the effectiveness of MBS’s spending priorities.
The Growing Budget Deficit
As Saudi Arabia, one of the world’s largest oil producers, faces declining oil revenues in the coming years, the kingdom is being forced to reconsider its financial strategy. In the first half of 2024, government spending rose by 12%, while revenues increased by just 9%. With oil revenues expected to drop by 2029, the country’s reliance on costly projects to drive growth may not be sustainable in the long run.
Many Saudis are beginning to express frustration with the direction of Vision 2030, as they see little improvement in their daily lives. Despite the vast wealth being spent, unemployment remains a challenge, and critical infrastructure projects that could benefit citizens directly are often overshadowed by glitzy developments aimed at attracting foreign investment and tourism.
A Vision Losing Focus?
While Vision 2030 was initially met with optimism, it is increasingly being viewed as a collection of costly, headline-grabbing initiatives that fail to address the kingdom’s core economic and social challenges. MBS’s focus on futuristic cities, entertainment complexes, and sports events may boost Saudi Arabia’s global profile, but the true cost of these ventures is being borne by the Saudi people, who continue to face economic uncertainty.
As the kingdom moves forward, the question remains: will MBS recalibrate Vision 2030 to focus on sustainable, long-term growth that benefits all Saudis, or will his extravagant spending lead to further economic strain and public discontent?
For now, the future of Saudi Arabia’s ambitious transformation remains uncertain, and the impact of over a trillion dollars in spending is yet to be fully realized.
