Saudi Arabia's Public Investment Fund (PIF), the world's sixth-largest sovereign wealth fund valued at $941 billion in 2024, is facing a slowdown due to declining oil prices, which are impacting its investments and the broader economy.

Since April 2025, the collapse in oil prices has caused Brent crude to fall below $67 and WTI below $64, significantly reducing Saudi oil revenue and forcing Aramco to cut its 2025 dividend payout estimate by nearly a third, thereby decreasing PIF's income.

Despite plans to increase annual spending to $70 billion in 2024, recent budget cuts of at least 20% across the PIF's portfolio have led to layoffs, project delays, and cancellations, especially affecting major initiatives like Neom and Red Sea Global.

The Neom project, a $500 billion city development, has scaled back from 170 km to just 5 km due to delays, and payment issues have caused contractors to withdraw from the Saudi market.

The PIF maintains substantial global investments in companies such as Meta, Disney, BP, Boeing, Uber, and Citigroup, with significant holdings across energy, property, IT, and financial sectors.

In an effort to bolster its economy, Saudi Arabia is seeking more foreign investment through MoUs with Goldman Sachs, Italian, and Japanese financial institutions, and is issuing bonds and sukuk, with investor interest remaining high despite budget constraints.

Saudi Arabia's Vision 2030 aims to diversify the economy by expanding tourism and private sector roles, but falling oil revenues threaten to undermine these strategic initiatives.

The slowdown in oil revenue is expected to reduce job creation, with employment growth dropping from nearly 10% in 2022 to around 3% in 2026, impacting expatriate workers and regional economies dependent on Saudi employment.

While the PIF is the world's highest-spending state-owned investor, recent budget cuts have prompted layoffs and project delays, affecting the execution of major projects like Neom and the Red Sea development.

Between 2017 and 2023, the PIF invested over $100 billion in the US, creating approximately 103,000 jobs and contributing $33 billion to GDP, with plans to increase investments to $230 billion and support over 440,000 US jobs by 2030.

Overall, the combination of falling oil prices and reduced revenues is prompting Saudi Arabia to reassess its economic strategies, with a focus on attracting foreign investment and diversifying its economy amid financial pressures.