Saudi Arabia's $2 trillion "Vision 2030" plan rebalances: Fiscal pressure forces government to pivot, reshaping project priorities.

Due to financial pressures, Saudi Arabia plans to release an updated strategy for Crown Prince Mohammed bin Salman's economic diversification agenda. Saudi Finance Minister Mohammed Al-Jadaan stated in an interview during the "Emerging Markets Economic Conference" held in Saudi Arabia that the government has begun discussions this week on how to convey its strategic plans for the next five years. He highlighted tourism, manufacturing, logistics, and technology as key focus areas, but did not provide further details or specify a timeline for the strategy's release. The International Monetary Fund (IMF) is one of the institutions calling for increased transparency and communication from the Saudi government. It is reported that the Saudi government is reexamining plans for major projects, including the construction of new stadiums for the 2034 World Cup. Saudi Arabia has been refining its "Vision 2030" agenda in an effort to reduce budget deficits and diversify the economy away from oil. After years of overspending, Saudi Arabia has increased its focus on improving expenditure efficiency, aiming to mitigate fluctuations in oil prices and revenues. Attracting more private capital and foreign investments has also become a higher priority for the "Vision 2030" plan. The estimated cost of the plan, based on interviews with insiders, U.S. government forecasts, Saudi official estimates, and data from research firm MEED, could be close to $2 trillion. "We are indeed continuing to realign priorities, revise policies, ensuring that we are constantly improving as we move forward to ensure that we can lead the private sector to drive the economy," Al-Jadaan said on the sidelines of an event jointly hosted by the IMF and the Saudi Ministry of Finance. Saudi Arabia aims to reduce its fiscal deficit Since 2022, Saudi Arabia has been running a fiscal deficit as spending on economic diversification initiatives has exceeded revenues impacted by weak oil prices. Officials have stated that the ongoing deficit is a deliberate choice to continue supporting economic investments. They project the deficit to decrease from 5.3% in 2025 to 3.3% next year, although Wall Street economists estimate that the figure could be higher. The country forecasts that its total financing needs for this year will reach approximately $58 billion to cover the budget shortfall. It plans to issue up to $17 billion in bonds in the international bond market. "We have a fairly broad network of channels, and if the needed funds exceed the plan, we can tap into them at any time," Al-Jadaan stated on Sunday, emphasizing that the Saudi economy is a key strength. In 2025, Saudi Arabia's Gross Domestic Product (GDP) achieved its fastest growth rate in three years, with the oil sector becoming a stronger engine of growth under OPEC+ new supply policies.