As Saudi Arabia grapples with declining oil revenues and rising fiscal challenges, Crown Prince Mohammed bin Salman’s ambitious economic and entertainment projects are drawing increasing scrutiny. The kingdom’s ongoing efforts to diversify its economy, outlined in its Vision 2030 strategy, have been marked by high-profile investments in sports, entertainment, and mega-projects. However, these initiatives have sparked concerns about the long-term viability of the nation’s finances.
Entertainment at the Forefront of Controversy
One of the most controversial aspects of the Crown Prince’s agenda is the Riyadh Season, an annual entertainment festival launched under his patronage. The 2024 edition of the event kicked off with a global boxing match that featured the first-ever women’s bout on Saudi soil. Australian fighter Skye Nicholson claimed victory in a historic match against Britain’s Raven Chapman at the Kingdom Arena, furthering Saudi Arabia’s push to present itself as a modern entertainment hub.
The festival, which will run until February 2025, features a broad range of attractions, including international sports tournaments, music festivals, and over 100 exhibitions. One of the highlights is the Joy Awards, celebrating both Arab and international artists. Despite the grandeur, the festival has stirred controversy, especially given its timing. Last year’s Riyadh Season coincided with the outbreak of conflict in Gaza, drawing criticism for its opulence in the face of regional instability.
Economic Strains and Calls for Fiscal Prudence
The expansion of entertainment initiatives, such as the Riyadh Season and Saudi Arabia’s growing involvement in international sports, comes at a time when the kingdom faces mounting economic challenges. A drop in global oil prices has put pressure on Saudi revenues, with the kingdom currently producing around nine million barrels of oil per day—well below its full capacity of 12 million barrels. Economic experts are sounding the alarm, advising caution in government spending due to shrinking oil revenues.
According to recent reports, Saudi Arabia is expected to post a budget deficit of 2.3% of its GDP by 2025, with higher deficits projected through 2027. This has prompted many to question the Crown Prince’s commitment to fiscal discipline, especially in light of the lavish spending on entertainment and sports, which are seen as non-essential expenditures during a period of financial difficulty.
The Public Investment Fund (PIF), which plays a central role in executing the Vision 2030 strategy, has also come under scrutiny. Tasked with investing at least $40 billion annually within the kingdom, the PIF is facing pressure to show tangible returns. Critics argue that many of the projects funded by the PIF, including the futuristic Neom mega-city, are delayed and over budget, casting doubt on their ability to contribute meaningfully to Saudi Arabia’s economic diversification.
Wrestling and Sportswashing: WWE in Saudi Arabia
Saudi Arabia’s relationship with international sports has been a significant part of its global strategy. A major focal point has been its multi-million-dollar partnership with World Wrestling Entertainment (WWE), which has attracted significant attention in recent years. The kingdom signed a $1 billion deal in 2018 with WWE to host events for ten years, cementing its position as a destination for global entertainment.
In a recent development, reports emerged that the Saudi Public Investment Fund made a $6.5 billion bid to purchase WWE outright. The move is part of a broader strategy to enhance Saudi Arabia’s global image through sports, often referred to as “sportswashing.” This effort to bolster its international reputation has drawn both praise and criticism. While some see it as a step toward modernization and diversification, others question the ethics behind such investments, particularly given Saudi Arabia’s ongoing human rights concerns.
Vision 2030: Bold Plans, Uncertain Future
At the heart of these developments is the Crown Prince’s Vision 2030, an ambitious initiative unveiled in 2016 to reduce Saudi Arabia’s dependence on oil and foster growth in other sectors, such as tourism, technology, and entertainment. The plan calls for attracting foreign investment and creating a more dynamic, diversified economy. However, experts warn that many of the projects tied to Vision 2030, including the high-profile Neom project, are not progressing as planned.
Recent reports indicate that spending on consultants for Neom has dropped by 20% to 30% in the last six months, signaling potential slowdowns. This has raised concerns that the massive project, along with others in the entertainment and tourism sectors, may not deliver the expected returns on investment, further straining the kingdom’s finances.
Balancing Spending with Economic Realities
As the kingdom continues to pursue its bold Vision 2030 agenda, questions about financial sustainability loom large. Economic experts have pointed to the growing budget deficit and the challenges of maintaining high levels of spending on entertainment and sports. At the same time, the Crown Prince’s policies have undoubtedly reshaped Saudi Arabia’s global image, attracting significant international attention and investment.
Yet, with oil revenues continuing to decline, the pressure is mounting on the Saudi government to balance its ambitious vision with the economic realities of its current situation. Whether Saudi Arabia can achieve its long-term goals without risking its financial stability remains to be seen, but the path forward will require careful management of both resources and expectations.
