Saudi Arabia has been a conveyor belt of flashy spending plans over the past year: a $48 billion property development anchored by a quarter-mile-tall cube; a global airline to rival aviation giants; a merger with the PGA Tour; a $100 billion investment in chips and electronics.
It is all getting rather expensive.
The country's sovereign wealth fund, which is tasked with these initiatives, last month said its cash levels as of September had fallen by roughly three-quarters to about $15 billion, the lowest since December 2020, when the fund began reporting the data.
To keep the spending taps open, the kingdom has turned to a tool it has shunned in recent decades: borrowing. It also plans another gargantuan sale of stock in the country's crown jewel, oil behemoth Saudi Aramco, according to people familiar with the sale.
The super-size spending and borrowing underscore Crown Prince Mohammed bin Salman's expansive ambitions for the country and show how they could face fiscal strains in a world of elevated interest rates and moderate oil prices.
The kingdom is now halfway through an economic development plan called Vision 2030, which aims to turn Saudi Arabia into an economically diverse powerhouse. Prince Mohammed has described his vision to remake the Middle East into "the new Europe."
The country last spring ordered $35 billion of jets from Boeing, half for the new airline. The sovereign wealth fund has shaken the economics of professional golf and soccer through a proposed merger of its LIV Golf and PGA and weighty offers to poach Premier League soccer players for the local Saudi league.
There are also new commitments, including a plan to spend $38 billion developing an esports and videogame sector and to create a homegrown electric-car manufacturing industry.
هذه القصة مأخوذة من طبعة February 21, 2024 من Mint Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة February 21, 2024 من Mint Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
IMAX India box office collections dip 36%
Ontario, Canada-based large-screen format cinema technology firm IMAX saw its India box-office collections fall by 36% in 2024, with Hollywood and local language films together delivering just $14.7 million in earnings.
Need for speed new priority as Centre trims road target
India plans to more than double the length of high-speed roads in the coming fiscal and target less of two- and four-lane highways, as the focus shifts to offering faster connectivity between key economic centres across the country.
JioHotstar, Nielsen partner for ad data
New OTT platform Jio-Hotstar, that emerged from the union of Jio Cinema and Disney+Hotstar, has tied up with global media audience measurement firm Nielsen to launch third-party verified advertising data starting with the upcoming edition of the Indian Premier League (IPL) cricket tourney, marking a major and long-pending shift towards transparency in digital ad measurement.
UK debuts £2.5bn steel plan after US tariff threat
The UK government debuted a new plan to protect jobs in the country's steel industry just days after US President Donald Trump threatened to introduce 25% tariffs on imports of steel and aluminium from all countries.
For influencers crowding Kumbh, the struggle is real
The social media opportunity of a lifetime—the Mahakumbh Mela in Prayagraj, which happens once in 144 years—has turned out to be a difficult one for the teeming army of influencers to convey footage from, especially when it comes to commercial videos shot for brands.
Plans afoot to curb misuse of Tapentadol, Pregabalin drugs
Both these are prescription drugs but government plans to curb their use as narcotics
Sebi plans to streamline asset claims
The markets regulator has proposed detailed guidelines to manage unclaimed assets and improve the return processes for investors to prevent misuse
The ₹10 beverage market is starting to get crowded
From buttermilk to fruit drinks and sparkling beverages, consumer companies are driving deeper into the market for ₹10 packs.
Startups Target Profitability, Ditching Growth-at-Any-Cost
Over the next two years, several early-stage startups in India are expecting to break even
Recent business books to add to your TBR list
Overwhelmed by the disruptions and disasters of the world of business? Take a deep breath and dive into these books
