Saudi Arabia replaces its investment minister

A royal decree was enough to oust him this Thursday, Feb. 12. Khalid al-Falih, who had served as Saudi Arabia's investment minister since 2020, has become minister of state, replaced by Fahad bin Abduljalil bin Ali al-Saif.

While this change occurred as part of a broader series of appointments, it is significant because Saudi Arabia is preparing to announce a revision to its flagship Vision 2030 plan.

According to Reuters, the idea was quietly shared with investors and key strategic partners on Monday, Feb. 9, during a conference in Riyadh.

Launched in 2016 by Crown Prince and Prime Minister Mohammed bin Salman (MBS), this economic diversification project, designed to prepare for the post-oil era, was meant to place Saudi Arabia at the forefront of regional economies, in stiff competition with the United Arab Emirates and, to a lesser extent, Qatar.

It notably included outlandish, futuristic megaprojects to attract investment and foreign workers, first among them NEOM, which encompassed The Line and the Trojena winter resort.

These megaprojects, however, have been scaled back in recent months after new feasibility assessments.

The reasons: a tighter budget due to relatively low oil prices; a lack of investment — in 2024, the kingdom attracted nearly $32 billion, far short of its annual goal of $100 billion by 2030 — offset by borrowing; and a redefinition of Riyadh’s strategic priorities.

The kingdom now plans to redirect its efforts toward artificial intelligence (AI) and minerals, among other things.

This task is now assigned to Saif, who will likely announce a new strategy to close out the decade soon. "We have no ego, absolutely no ego," Finance Minister Mohammad al-Jadaan said last December, laying the groundwork. "If we announce something and we need to adjust it, accelerate it, make it a priority over other things, or defer or cancel it, we will do so without hesitation."

A former banker, Saif has worked at the Saudi sovereign wealth fund, the PIF, since 2021 and has served as head of investment strategy and economic outlook since 2024.

This will tighten the links between the government and this entity, the kingdom’s main investment vehicle.

In his roles, he has also managed the kingdom’s AI strategy, which will be central to Saudi priorities in the coming years. He also has extensive experience in debt management and investor relations.