Can Saudi Arabia keep pace with its ambitious mega-project spending spree?
Digital render of NEOM’s The Line project in Saudi Arabia
The Line, NEOM
In Saudi Arabia’s northwestern desert, a sprawling construction site replete with cranes and pile drivers sits encircled by a recently-built road. A pair of tracks cuts through the site like deep gashes through the sand, comprising the spine of what planners say will be a high-speed rail system.
The skeletal infrastructure forms the foundations of The Line, a multi-billion dollar high-tech city that its architects say will eventually house 9 million people between two 106-mile long glass skyscrapers more than 1,600 feet high.
The project, whose estimated cost is in the hundreds of billions, is just one of the hyper-futuristic venues planned in Neom, the brainchild of Saudi Crown Prince Mohammed bin Salman and a region that the kingdom hopes will bring millions of new residents to Saudi Arabia and revolutionize living and technology in the country. It’s a core pillar of Vision 2030, which aims to diversify the Saudi economy away from oil revenues and create new jobs and industries for its burgeoning young population.
The cost of Neom has been estimated to be as high as $1.5 trillion. In the years since it was announced, Saudi Arabia’s Public Investment Fund, the mammoth sovereign wealth fund now overseeing $925 billion in assets, has poured billions into overseas investments, with ever-increasing waves of foreign investors flying to the kingdom to raise cash.
This year, however, has seen a sharp change in direction in terms of spending, with a stated emphasis on keeping investments at home along with reports of cutting costs on megaprojects like those in Neom. The changes come as the Saudi deficit grows and the outlook for oil demand, along with global oil prices, sees sustained lows.
Construction for The Line project in Saudi Arabia’s NEOM, October 2024
Giles Pendleton, The Line at NEOM
That begs the question: does Saudi Arabia have enough money to meet its lofty goals? Or will it have to be more flexible to make its spending trajectory sustainable?
One Gulf-based financier with years of experience in the kingdom told CNBC: “The PIF’s pivot towards domestic investments, widely acknowledged but now officially admitted, suggests that there is still a lot of spending needed. Saudi Arabia has poured tens of billions into projects that have yet to hint of any financial returns.”
The financier spoke anonymously as they were not authorized to speak to the press.
Andrew Leber, a researcher at Tulane University who focuses on the political economy of the Middle East, believes that the current pace of spending won’t last.
“The number of ‘we pay up front and hope for economic returns later’ giga projects that are currently underway is not sustainable,” Leber said.
“With that being said,” he added, “the Saudi monarchy has shown itself to be somewhat flexible whenever economic realities assert themselves. I do think that eventually, a number of projects will be quietly shelved in order to bring its fiscal outlays back into greater sustainability.”
Digital render of NEOM’s The Line project in Saudi Arabia
The Line, NEOM
Saudi Arabia in October cut its growth forecasts and raised its budget deficit estimates for the fiscal years 2024 to 2026 as it expects a period of higher spending and lower projected oil revenues. Real gross domestic product is now expected to grow 0.8% this year, a dramatic drop from a previous estimate of 4.4%, according to the ministry of finance.
The kingdom’s economy also swung dramatically from a budget surplus of $27.68 billion in 2022 to a deficit of $21.6 billion in 2023 as it ramped up public spending and decreased oil production due to its OPEC+ supply cut agreement. Its government forecasts a deficit of $21.1 billion for 2024, projecting revenue at $312.5 billion and expenditures at $333.5 billion.
Saudi authorities expect that the budget will remain in deficit for the next several years as it pursues its Vision 2030 plans, but they add that they are fully prepared for this.
“Our non-oil revenues have grown significantly, now it covers about 37% of expenditure. That’s a significant diversification, and that gives you a lot of comfort that you can maneuver and be stable despite the fluctuation in oil price,” Saudi Finance Minister Mohammed Al-Jadaan told CNBC in October. “Our aim is to make sure that our plans are stable and predictable.”
“We are not going to blink, we have significant fiscal resource under our disposal, and we are very disciplined in our fiscal position,” the minister said.
Saudi Arabia has an A/A-1 credit rating with a positive outlook from S&P Global Ratings and an A+ rating with a stable outlook from Fitch. That combined with high foreign currency reserves — $456.97 billion as of September, a 4% percent increase year-on-year, according to the country’s central bank — puts the kingdom in a comfortable place to manage a deficit, economists told CNBC.
Riyadh is successfully issuing bonds, tapping debt markets for more than $35 billion so far this year. The kingdom has also rolled out a series of reforms to boost and de-risk foreign investment and diversify revenue streams, which S&P Global said in September “will continue to improve Saudi Arabia’s economic resilience and wealth.”
When asked if the kingdom’s spending trajectory is sustainable, Al-Jadaan replied: “Absolutely, yes,” adding that the government recently published its numbers for the next three years and that “we think it is very sustainable.”
Still, many analysts outside the kingdom, as well as individuals working within the kingdom and on NEOM projects, are skeptical of the megaprojects’ feasibility. Reports that some projects have been dramatically cut down — in the case of the Line, its size target slashed from 106 miles to 1.5 miles and population target down from 1.5 million by 2030 to less than 300,000 — attest to that concern on a higher level.
Neom executives acknowledge that the current phase of work on The Line is for a building length of 1.5 miles — which would still make it the longest building in the world. However, the eventual goal of 106 miles has not changed, they say, stressing that cities are not built overnight and that construction is continuing apace.
For Tarik Solomon, chairman emeritus at the American Chamber of Commerce in Saudi Arabia, “it’s promising to see transparency and some project cutbacks.”
“The Kingdom’s rising external borrowing reflects challenges with Vision 2030 feasibility,” he told CNBC.
“Though debt remains manageable at 26.5% of GDP, continued small pressures add up, underscoring the need for fiscal discipline and achievable goals.”
Solomon pointed to the desire of many Saudi residents for improvements to the infrastructure they use in their daily lives — like Riyadh’s public transport, network connectivity, schools, and health care.
“The road to resilience for Saudi Arabia isn’t in figuring out ski slopes in the desert but in building with innovation, complexity, and the courage to pursue what’s truly impactful,” he said.
The US solar industry just raised the alarm over the GOP’s “One, Big, Beautiful Bill,” warning it could kneecap America’s energy future and trigger a massive power shortage in its current form.
The Solar Energy Industries Association (SEIA) is warning that legislation recently passed by the House Ways and Means Committee could shut down or prevent nearly 300 solar and battery storage factories from opening. If this bill becomes law without changes, the US could lose enough solar generation by 2030 to power the state of Pennsylvania for a year. That’s 145,000 gigawatt-hours of clean electricity that could vanish.
The SEIA analysis paints a grim picture: Nearly 300,000 US jobs are at risk, including 86,000 in solar manufacturing alone. And here’s the twist, as I’ve pointed out before – about 80% of the jobs and factories at risk are in red states that voted for Trump.
“There is still time to improve this bill, which, as written, represents a crisis for America’s ability to build the energy infrastructure we need to meet surging demand,” said SEIA president and CEO Abigail Ross Hopper.
The SEIA says the legislation would slam the brakes on solar and storage investments just as energy demand is soaring, thanks partly to the explosion in AI and data centers. SEIA estimates the bill could wipe out $220 billion in potential investments by 2030.
The House bill also repeals the Section 25D residential solar tax credit, which has been a critical driver of solar adoption for middle-class families. Without it, installing solar gets way more expensive – and out of reach for many households.
As Electrek reported last week, solar and wind accounted for almost 98% of new US electrical generating capacity added in Q1 2025, according to new Federal Energy Regulatory Commission (FERC) data.
Solar and wind also made up an impressive 100% of new capacity in March, and March was the 19th consecutive month in which solar was the largest source of new capacity.
The US needs to add 206.5 gigawatts of new energy capacity by 2030. Solar is expected to deliver nearly three-quarters of that. If the bill guts solar incentives, we’re looking at higher electricity bills and slower economic growth. SEIA says the rollback could drive up consumer energy costs by $51 billion.
Hopper didn’t mince words: “Passing this bill would create a catastrophic energy shortfall, cede AI and tech leadership to China, and damage some of the most vital sectors of the US economy.”
She added that the Senate can still step in with a smarter proposal that aligns with Trump’s push for US energy dominance.
SEIA’s message to lawmakers? Fix the bill or energy production will plummet, blackouts will become more frequent, and the US will face a devastating – and completely avoidable – energy shortage.
Read more: The House draft budget kills the 30% residential solar tax credit
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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![Lucid Gravity flexes its power at the Nürburgring alongside other upcoming EVs [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/Lucid-Gravity-Nurburgring.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Lucid’s Gravity is a three-row electric SUV, but it’s faster than most sports cars. Boasting up to 828 hp, the luxury SUV can accelerate from 0 to 60 mph in less than 3.5 seconds. The Lucid Gravity was spotted ripping around the Nürburgring track in Germany, showing off its power and agility. Check it out in the videos below.
Lucid Gravity hits the Nürburgring for testing
As it ramps up production of its first electric SUV, Lucid is preparing for another big year of growth. Last week, Lucid’s interim CEO, Marc Winterhoff, told Bloomberg that the company would enter new parts of Europe and the Middle East this year.
Two Lucid Gravity test vehicles with European test plates were recently spotted testing at the Nürburgring, hinting that an official launch could be coming soon.
In a video from StateSideSuperCars posted last week, you can catch a glimpse of the Gravity (skip to 9:45) showing off its agility, handling, and control as it rips around the race track.
Another video, courtesy of EMS Sport TV, shows the Gravity test vehicle alongside several other current and upcoming EV models, including BMW’s Neue Klasse SUV, Mercedes CLA EV, and what appears to be the Kia EV4 sedan.
During the Gravity’s “Celestial Arrival” in March, Winterhoff said Gravity deliveries would resume by the end of April. Lucid delivered the first models in December 2024, but those were for family, friends, and employees.
The Lucid Gravity Grand Touring is available to order in the US. Prices start at $94,900 with up to 450 miles of range. Later this year, Lucid will launch the Gravity Touring model, starting at $79,900.
On Lucid’s website, the Gravity SUV is still unavailable to order in Germany, Switzerland, the Netherlands, or Norway.
The Lucid Gravity Grand Touring and Touring models are available in Saudi Arabia, starting at SAR 487,715 ($130,000) and SAR 416,645 ($111,000), respectively.
Another luxury electric SUV was recently spotted at the Nürburgring. The “ultra-luxe” Genesis GV90 was caught with less camo, giving us our best look at the upcoming flagship SUV.
Source: Lucidowners.com
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Waffle House is about to become a go-to DC fast charging spot for EV drivers, thanks to a new partnership with bp pulse.
The EV charging arm of British oil giant bp just announced a “strategic relationship” with the American diner chain to bring DC fast charging to a network of Waffle House locations across the South and Southeast, including Texas, Georgia, and Florida.
Each site will get six DC fast charging bays with 400kW chargers featuring both CCS and NACS connectors. The first stations are expected to go live in 2026.
Now, if you’ve ever been on a road trip through the South, you already know Waffle House is always open. Like, always. The lights are on 24/7, even during hurricanes and major storms. There’s actually something called the “Waffle House Index” used by FEMA and emergency responders to gauge how bad a storm is. If the Waffle House is closed? It’s serious.
That makes these locations a pretty smart choice for DC fast chargers. In an evacuation scenario or on a road trip, it’s a reliable place to stop, fast charge your car, and grab a plate of smothered and covered hash browns.
“Adding an iconic landmark like Waffle House to our growing portfolio of EV charging sites is such an exciting opportunity,” said Sujay Sharma, CEO of bp pulse Americas. “We’re building a robust network of ultrafast chargers across the country.”
A bp pulse spokesperson told Electrek that the “first batch of 50 sites is already in the works.” And with Waffle House locations situated along major highways and well-traveled routes, this move could make a big difference in EV charging accessibility, especially in areas that need an EV infrastructure boost.
Read more: Rivian R1T gets dragged 100 feet after Hurricane Helene and still runs [Video]
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
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