RIYADH — Minister of Investment Khalid Al-Falih said global events, technological shifts and the Kingdom’s hosting of major international milestones have reshaped national investment priorities, prompting flexibility in project planning and a recalibration of some large-scale developments.Speaking at the PIF Private Sector Forum on Monday, Al-Falih said investment planning today requires constant reassessment. “Sometimes we change our plan twice a year,” he said, citing his experience at Aramco.He explained that if there is “a radical, unexpected change in demand, competition, or feasibility,” projects must be withdrawn and replaced, noting that every investment entity operates within capital limits.He said the Public Investment Fund has grown “unprecedentedly” from around SR560–600 billion to nearly SR4 trillion, with a large share directed toward stimulating domestic sectors through “bold and unprecedented projects such as NEOM, THE LINE, and others.”However, Al-Falih said new national priorities have emerged. “Our plans for the World Cup became a reality,” he said, stressing that hosting the tournament requires far more than building stadiums. “Each stadium will be a cell for an economic zone around it,” linked to logistics, quality of life, and healthcare, not only for visitors but also for residents in surrounding areas.He said these priorities are part of a broader pipeline that also includes Expo 2030, King Salman International Airport, and the expansion of King Khalid International Airport.“These are the priorities,” he said, adding that changes in feasibility for some projects, including THE LINE, are assessed at the sector level and are “very normal.”Al-Falih said the Kingdom is simultaneously accelerating investment in artificial intelligence and advanced technology value chains, describing the pace of global change as unprecedented.“We are still at the beginning of artificial intelligence,” he said, noting that the sector will require “investments of trillions at the global level.”He cited the PIF-backed AI company HUMAIN’s short- to medium-term plan to develop between three and six gigawatts of capacity, saying each gigawatt represents investments of $30–50 billion globally.He said much of this investment would flow into the Kingdom through partnerships, including with global chipmakers and local firms.Al-Falih said the fund has entered partnerships across sectors, including data, food production, and telecommunications, as part of building national champions while extending value chains from power networks to digital and cyber infrastructure, professional development, and smart cities.He also highlighted the launch of the National Investment Strategy, saying Crown Prince Mohammed bin Salman directed the Ministry of Investment to act as an enabling body across all sectors.The strategy targets SR12 trillion in investments and aims to embed investment across the entire economy.Al-Falih said more than half of the strategy’s targets have already been achieved since its launch in October 2022, with investment now accounting for around 30 percent of the Saudi economy. Excluding oil, he said investment represents more than 40 percent of the non-oil economy, a level reached historically by only a few major economies.He said PIF injections account for roughly 10 percent of total investment, alongside a reduction in direct government spending to avoid crowding out the private sector. This, he added, has helped attract global investors and funds, expand tourism and infrastructure value chains, and sharply increase the number of foreign companies using Saudi Arabia as a regional and global platform.“The world is coming to Saudi Arabia,” Al-Falih said, describing the current phase as one of integrated growth driven by investment, diversification, and partnership with the private sector.
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