Time to cut govt, PIF spending, let pvt sector invest: Minister

Saudi Arabia should now scale back the spending by the government and the Public Investment Fund (PIF) and allow the private sector to take the lead in investment, said Minister of Investment Khalid Al-Falih.

Many largescale projects that require substantial expenditure have now reached an advanced stage, the minister said during a session at the ninth edition of the Future Investment Initiative (FII).

He cited the Red Sea Project as an example, noting that several resorts there have started operations. He also mentioned Diriyah Gate and Qiddiya developments, where many hotels are preparing to open and operations are set to commence very soon.

“These assets should now be transferred to the market to observe how they perform under private-sector management,” Al-Falih said.

He further noted that over the past two years, new opportunities have emerged, including artificial intelligence, the acceleration of digital transformation, the ability to establish advanced data centers, and the revolutionary changes taking place across various sectors — all of which have necessitated a reallocation of resources and capital.