Saudi Arabia's PIF Shifts Focus to AI, Logistics, Religious Tourism

Saudi Arabia is shifting its economic diversification strategy under Vision 2030, moving away from large real estate megaprojects like NEOM and The Line towards sectors such as technology, artificial intelligence, logistics, religious tourism, clean energy, and advanced manufacturing to improve short-term returns and economic productivity. The Public Investment Fund (PIF) is refining its portfolio to focus on these areas while maintaining investments in oil and petrochemicals, aiming to position Saudi Arabia as a global logistics hub. The kingdom's non-oil sector now constitutes 56% of its GDP, with tourism outperforming initial targets, prompting plans to increase visitor numbers to 150 million by 2030. Infrastructure developments, including the ambitious Land Bridge high-speed rail project connecting Jeddah, Riyadh, and Dammam, will enhance transportation and commercial connectivity, further supporting economic diversification and logistics ambitions. Additionally, Saudi Arabia is incorporating sustainable technologies like hydrogen-powered trains and luxury scenic train experiences to bolster its modern transportation network. These shifts reflect a broader prioritization of innovation and private sector dynamism to reduce reliance on oil revenues and prepare for a technology-led future economy.