MBS might be ready for some 'tough conversations' about 'recalibrating' Saudi Arabia's Neom and Vision 2030 projects

Beatrice Nolan
·2 min read
22
MBS/NEOM
A rendering of Neom and Saudi Arabia's Crown Prince Mohammed bin Salman.Neom; Nicolas Asfouri/Getty Images
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  • Saudi Arabia's Crown Prince is reportedly open to having "tough conversations" about Vision 2030.

  • MBS might be ready to discuss which projects should proceed first, the Financial Times reported.

  • Saudi has been deflecting suggestions that some of its megaprojects are facing financial issues.

Crown Prince Mohammed bin Salman may finally be ready to have some "tough conversations" about his ambitious Vision 2030 project.

The de-facto Saudi leader is open to discussing which projects should progress and which could wait, the Financial Times reported, citing a person familiar with the thinking at the Public Investment Fund — the sovereign wealth fund.

Amine Mati, head of the IMF's mission for Saudi Arabia, told the FT that Saudi authorities were "recalibrating" to assess whether some spending should be delayed.

Representatives for Neom did not immediately respond to a request for comment from Business Insider.

The comments come after the kingdom has tried to deflect reports that some of its Vision 2030 projects are facing financial strain.

Last month, Bloomberg reported that the financial realities of the country's Neom project, which could cost as much as $1.5 trillion, have started to cause alarm within the Saudi government.

Meanwhile, Saudi has started borrowing to help fund some Vision 2030 megaprojects including Neom, The Wall Street Journal reported.

The kingdom's also been battling reports that plans for Neom, the ambitious desert city, have been scaled back.

In an apparent attempt to refute some of these claims, the Saudi economy minister, Faisal Al Ibrahim, recently said all Neom projects were continuing at the planned scale.

"These projects will be delivered to their scale and in a manner that in terms of priorities suits the needs of the projects, the returns of these projects, and the economic impact," he told the World Economic Forum's special meeting in Riyadh last month.

Vision 2030 aims to transform Saudi Arabia economically and politically by reducing its dependence on oil revenues and pivoting toward tech.

Neom has emerged as the plan's flashy centerpiece. Saudi officials tout the project as "the world's most ambitious."

The resort island of Sindalah, the first region of Neom, is due to open later this year.

Read the original article on Business Insider