Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud is seen. File.
| Photo Credit: Reuters

Saudi Arabia, which restored ties with Tehran last year following a years-long rift, on Saturday congratulated Iran’s new president-elect, the reformist Masoud Pezeshkian.

King Salman, in a message to Pezeshkian, expressed hope for the “continued development of relations which link our two countries and our two brotherly peoples,” according to the official Saudi Press Agency (SPA).

He also expressed his wish for further “coordination and dialogue to strengthen regional and international peace and security,” SPA said.

After a seven-year rupture, Sunni Muslim-majority Saudi Arabia and Shiite-dominated Iran resumed relations under a surprise China-brokered deal announced in March last year.

Since then the two Middle East powers, which have often supported opposing sides in regional conflicts, have intensified their contacts.

Iran’s ultraconservative President Ebrahim Raisi travelled to Riyadh in November for a summit on the Israel-Hamas war in the Gaza Strip.

Raisi’s death in a helicopter accident in May led to Iran’s early election, in which Pezeshkian defeated his ultraconservative challenger Saeed Jalili in a runoff.

The emir of Kuwait, another Gulf state, also sent a cable of congratulations to Pezeshkian, wishing “more prosperity and development” for the Islamic republic, Kuwait’s official KUNA news agency said.

Saudi TV creator Abdulaziz Almuzaini, whose animated Netflix show has made waves for breaking social taboos, said he had been convicted by an anti-terrorism court, prompting condemnation from rights advocates.

The kingdom’s Specialised Criminal Court, established in 2008 to try suspects accused of terrorism, “issued against me (a sentence of) 13 years, followed by a 13-year travel ban”, Mr. Almuzaini said in a video posted online last week that was subsequently deleted.

In a second video posted this week, which is still available on social media platform X, Mr. Almuzaini filmed himself inside a car, saying: “I am banned from travelling” out of Saudi Arabia.

Saudi officials did not immediately respond to a request for comment from AFP on Thursday, and there was no word of Mr. Almuzaini — who was not available for comment — having been incarcerated.

His satirical show “Masameer County”, billed as “a humorous view on a changing Saudi”, debuted in 2021.

Episodes tackled topics such as disputes among tribes and Islamic militancy, and even featured oblique references to homosexuality, a potential capital crime in Saudi Arabia.

The Wall Street Journal on July 4 reported that court documents in the case referred to online posts by Almuzaini which “ridiculed Arab regimes… or voiced support for women’s rights”.

Mr. Almuzaini said in the since-deleted video that the court accused him of promoting homosexuality and militancy.

He also said that, amid mounting pressure from Saudi authorities, he was forced to close his company, Myrkott Animation Studio.

“The services of all the employees of the Myrkott company were terminated a week ago,” he said.

“Those are people who have families, people who have worked with us since 2012. I had to stand up and apologise to them all and announce to them that Myrkott had ended.”

Appeal to the prince

The video included a direct appeal to Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, who became first in line to the throne in 2017 and has overseen sweeping social and economic reforms.

“I believe that we are in a country ruled by a rational family, and if one of its citizens is subjected to injustice, I have faith that my voice reaching His Highness the Crown Prince will correct some of what happened to me,” Mr. Almuzaini said.

Saudi Arabia has been criticised for what activists describe as a fierce crackdown on even vaguely critical online speech.

In the past two years the Saudi judiciary has “convicted and handed down lengthy prison terms on dozens of individuals for their expression on social media”, human rights groups Amnesty International and ALQST said in April.

Saudi officials say the accused had committed terrorism-related offences.

High-profile examples include two women who received decades-long sentences in 2022 for posting and sharing critical online posts, as well as a retired teacher who last year was sentenced to death after denouncing alleged corruption and human rights abuses on social media.

Prince Mohammed in a September interview with Fox News said he disapproved of that judgement and raised the possibility that the retired teacher, Mohammed al-Ghamdi, might be spared death.

Unlike in these cases, Mr. Almuzaini does not seem to have been jailed.

The proceedings against him nevertheless appeared to continue a trend of shutting down free speech, said Abdullah Alaoudh, senior director for countering authoritarianism at the U.S.-based Middle East Democracy Center.

“Saudi Arabia’s creative industries will not thrive — let alone attract investment — until the authorities recognise and fully respect the human rights of all its citizens,” Mr. Alaoudh said.

Lina al-Hathloul, head of monitoring and communication for ALQST, denounced the imposition of a travel ban, as was the case with her sister, prominent women’s rights activist Loujain al-Hathloul.

“We all would like to live in the country, but in safety and without these violations and the arbitrary and unjustified travel ban that has exhausted many, including my family,” the London-based Lina al-Hathloul said on X.

Students raise slogans during a protest over the alleged irregularities in NEET 2024 results.
| Photo Credit: –

48% of 1,563 candidates skip NEET-UG re-exam

Of the 1,563 candidates eligible to appear for the re-exam of the undergraduate National Eligibility-cum-Entrance Test (NEET-UG), only 813 (approximately 52%) took it on Sunday. Another 750 candidates (approximately 48%) remained absent. The three-and-a-half hour long exam was conducted across seven centres in the States of Chhattisgarh, Gujarat, Haryana, Meghalaya, and the Union Territory of Chandigarh. 

Centre’s high-level panel on exam reforms likely to meet on June 24

The Union education ministry’s high-level panel for suggesting exam reforms and reviewing functioning of the National Testing Agency will meet on June 23, sources said. Amid a row over irregularities in competitive exams, the ministry on Saturday notified a seven-member panel headed by former Indian Space Research Organisation (ISRO) chief K. Radhakrishnan to ensure transparent, smooth and fair conduct of examinations through the National Testing Agency (NTA).

Kallakurichi hooch tragedy: Suspected main supplier of methanol held in Chennai

The police on Sunday arrested Sivakumar, 30, suspected to be one of the main suppliers of methanol to the sellers of illicit liquor, even as the death toll in the hooch tragedy in Kallakurichirose to 56. A central investigation unit of the Enforcement wing of the Tamil Nadu police nabbed Sivakumar, who was hiding in his sister’s house at Sulapallam in Chennai, in the early hours of Sunday.

Delhi excise case: Arvind Kejriwal moves SC against HC’s interim stay on bail order in ED case

Delhi Chief Minister Arvind Kejriwal urgently approached the Supreme Court on June 23 against the Delhi High Court’s suspension of bail granted to him by a trial court in the excise policy case .Mr. Kejriwal’s lawyers said the petition would be mentioned orally for early hearing on June 24 before a Vacation Bench of the Supreme Court.

Union Tribal Affairs Minister promises to look into Great Nicobar clearances

The Union Tribal Affairs Ministry will be looking into the forest clearance paperwork of the ₹72,000-crore infrastructure project on Great Nicobar Island that the National Democratic Alliance (NDA) government has been pushing for, and accordingly determine next steps, Tribal Affairs Minister Jual Oram has said. In an exclusive interaction with The Hindu last week, he outlined his intent to give special attention to forest and land rights of tribal communities during his term. 

Militant killed close to LoC in Uri sector, says Army

One militant was killed in an ongoing anti-militancy operation in north Kashmir’s Baramulla on June 23. “One terrorist has been killed in the ongoing anti-infiltration operation that was launched on June 22 in the Uri Sector. Operations are continuing,” an Army spokesman said. 

Saudi says 1,301 deaths during hajj, mostly unregistered pilgrims

Saudi Arabia said Sunday that more than 1,300 faithful died during the hajj pilgrimage which took place during intense heat, and that most of the deceased did not have official permits. “Regrettably, the number of mortalities reached 1,301, with 83 percent being unauthorised to perform hajj and having walked long distances under direct sunlight, without adequate shelter or comfort,” the official Saudi Press Agency reported.

Sri Lankan president reiterates support for separate state of Palestine

President Ranil Wickremesinghe on June 23 reiterated Sri Lanka’s unwavering support for a separate Palestinian state to be established “within five years.” The president also said that despite the country’s current bankrupt economy, generous public contributions collected a million dollars in response to his government’s Gaza Children’s Fund that was donated.

Russia approves draft logistics agreement to be signed with India

After being held up for several years, the India-Russia mutual logistics agreement is ready for conclusion, with Russia approving the draft agreement over the past week. The agreement will simplify military-to-military exchanges for exercises, training, port calls and Humanitarian Assistance and Disaster Relief (HADR) efforts. It is similar to a series of such agreements that India has signed with a number of countries, beginning with the United States in 2016.

Former Israeli Ambassador says India may be ‘returning the favour’ with military supplies for Israel

Former Israeli Ambassador to India, Daniel Carmon, speaking with the leading Israeli publication Ynetnews, has said that India might be supplying weapons to Israel as a sign of gratitude for Israeli assistance during the Kargil war of 1999. The seasoned diplomat’s comments came in the backdrop of speculation that India has supplied drones and artillery shells to Israel as the latter ran short of the items with its war against the Hamas continuing for more than eight months.

Albania player Mirlind Daku banned by UEFA for two Euro 2024 games after nationalist chants

Albania player Mirlind Daku was banned on Sunday for two games after leading fans in nationalist chants at the European Championship, that UEFA said brought soccer into disrepute .Daku took a megaphone after Albania’s 2-2 draw with Croatia on Wednesday in Hamburg and joined in chanting slogans against Serbia and North Macedonia.

T20 World Cup 2024: Near perfect India could play party poopers to under pressure Australia

India will be out to derail Australia’s T20 World Cup campaign when they take on their shocked and under-pressure opponents in their final Super 8 game in Saint Lucia on June 24. A third straight win for India will not only make them the group toppers and send them to the semifinals, it will also substantially threaten Australia’s chances of progressing through to the semifinals following the unexpected loss to Afghanistan in Saint Vincent on Saturday night.

Euro 2024: Croatia faces Italy in crunch survival clash

Group B was dubbed Euro 2024’s ‘Group of Death’ but while Spain soared through with a game to spare, heavyweights Italy and Croatia meet on June 24 fighting to stay in the competition. Both sides were outclassed by Spain, and while reigning champions Italy edged Albania 2-1, Croatia could only draw 2-2 with the minnows.

Muslim devotees walk around the Kaaba, Islam’s holiest shrine, at the Grand Mosque in Saudi Arabia’s holy city of Mecca. File
| Photo Credit: FADEL SENNA

The number of deaths during this year’s haj pilgrimage totaled 1,301 people, Saudi Arabia’s health minister Fahad Al-Jalajel said on Sunday.

The minister, quoted by state television, said that deaths were caused by pilgrims “walking long distances under direct sunlight without adequate shelter or comfort”.

Fatalities also included a number of elderly people and those suffering from chronic diseases. Some 83% of the fatalities were among people who were not authorized to make the pilgrimage, he said.

Muslim pilgrims holding umbrellas walk on the third day of the Satan stoning ritual, amid extremely hot weather, during the annual haj pilgrimage, in Mina, Saudi Arabia, on June 18, 2024.
| Photo Credit: Reuters

A diplomat in Saudi Arabia said on June 19 that 68 Indian nationals died during the haj pilgrimage this year marked by searing heath, bringing the overall tally to more than 600.

“We have confirmed around 68 dead… Some are because of natural causes and we had many old-age pilgrims. And some are due to the weather conditions, that’s what we assume,” the diplomat, who spoke on condition of anonymity, told AFP.

The new toll comes after two Arab diplomats told AFP on Tuesday that 550 deaths had been recorded during the haj, one of the five pillars of Islam that all Muslims with the means must perform at least once.

That figure included 323 Egyptians and 60 Jordanians, the Arab diplomats said, and one specified that nearly all the Egyptians died “because of heat”.

Fatalities have also been confirmed by Indonesia, Iran, Senegal, Tunisia and Iraq’s autonomous Kurdistan region, though in many cases authorities have not specified the cause.

The total reported dead so far is 645, according to an AFP tally.

Last year more than 200 pilgrims were reported dead, most of them from Indonesia.

Saudi Arabia has not provided information on fatalities, though it reported more than 2,700 cases of “heat exhaustion” on Sunday alone.

The diplomat who confirmed the Indian fatalities said there were also some Indian pilgrims missing, but he declined to provide an exact number. “This happens every year… We can’t say that it is abnormally high this year,” he said.

“It’s somewhat similar to last year but we will know more in the coming days.”

For the past several years the haj has fallen during the sweltering Saudi summer.

According to a Saudi study published last month, temperatures in the area where rituals are performed are rising 0.4 degrees Celsius (0.72 degrees Fahrenheit) each decade.

Muslim pilgrims use umbrellas to shield themselves from the sun during the annual haj, in Mina, near the holy city of Mecca, Saudi Arabia, on June 18, 2024. Muslim pilgrims were wrapping up the Haj pilgrimage in the deadly summer heat on Tuesday
| Photo Credit: AP

Diplomats on Tuesday said at least 550 pilgrims died during the haj, underscoring the gruelling nature of the pilgrimage which again unfolded in scorching temperatures this year.

At least 323 of those who died were Egyptians, most of them succumbing to heat-related illnesses, two Arab diplomats coordinating their countries’ responses told AFP.

“All of them (the Egyptians) died because of heat” except for one who sustained fatal injuries during a minor crowd crush, one of the diplomats said, adding the total figure came from the hospital morgue in the Al-Muaisem neighbourhood of Mecca.

At least 60 Jordanians also died, the diplomats said, up from an official tally of 41 given earlier on Tuesday by Amman. The new deaths bring the total reported so far by multiple countries to 577, according to an AFP tally. The diplomats said the total at the morgue in Al-Muaisem, one of the biggest in Mecca, was 550.

The haj is one of the five pillars of Islam and all Muslims with the means must complete it at least once.

The pilgrimage is increasingly affected by climate change, according to a Saudi study published last month that said temperatures in the area where rituals are performed were rising 0.4 degrees Celsius (0.72 degrees Fahrenheit) each decade.

Temperatures hit 51.8 degrees Celsius (125 Fahrenheit) at the Grand Mosque in Mecca on Monday, the Saudi national meteorology centre said.

Heat stress

Earlier on Tuesday, Egypt’s foreign ministry said Cairo was collaborating with Saudi authorities on search operations for Egyptians who had gone missing during the haj.

While a ministry statement said “a certain number of deaths” had occurred, it did not specify whether Egyptians were among them.

Saudi authorities have reported treating more than 2,000 pilgrims suffering from heat stress but have not updated that figure since Sunday and have not provided information on fatalities.

At least 240 pilgrims were reported dead by various countries last year, most of them Indonesians.

AFP journalists in Mina, outside Mecca, on Monday saw pilgrims pouring bottles of water over their heads as volunteers handed out cold drinks and fast-melting chocolate ice cream to help them keep cool.

Saudi officials had advised pilgrims to use umbrellas, drink plenty of water and avoid exposure to the sun during the hottest hours of the day.

But many of the haj rituals, including the prayers on Mount Arafat which took place on Saturday, involve being outdoors for hours in the daytime.

Some pilgrims described seeing motionless bodies on the roadside and ambulance services that appeared overwhelmed at times.

Around 1.8 million pilgrims took part in the haj this year, 1.6 million of them from abroad, according to Saudi authorities.

Unregistered pilgrims

Each year tens of thousands of pilgrims attempt to perform the haj through irregular channels as they cannot afford the often costly procedures for official haj visas.

This places these off-the-books pilgrims at risk as they cannot access air-conditioned facilities provided by Saudi authorities along the haj route.

One of the diplomats who spoke to AFP on Tuesday said that the Egyptian death toll was “absolutely” boosted by a large number of unregistered Egyptian pilgrims.

“Irregular pilgrims caused great chaos in the Egyptian pilgrims’ camps, causing the collapse of services,” said an Egyptian official supervising the country’s haj mission.

“The pilgrims went without food, water, or air conditioning for a long time.”

They died “from the heat because most people had no place” to take shelter.

Earlier this month, Saudi officials said they had cleared hundreds of thousands of unregistered pilgrims from Mecca ahead of the haj.

Other countries to report deaths during the haj this year include Indonesia, Iran and Senegal.

Most countries have not specified how many deaths were heat-related.

Saudi Health Minister Fahd bin Abdul Rahman Al-Jalajel said on Tuesday that health plans for the haj had “been successfully carried out”, preventing major outbreaks of disease and other public health threats, the official Saudi Press Agency reported.

Health officials “provided virtual consultations to over 5,800 pilgrims, primarily for heat-related illnesses, enabling prompt intervention and mitigating the potential for a surge in cases,” SPA said.

Muslim pilgrims take part in the annual haj pilgrimage in Mina, Saudi Arabia, June 16, 2024.
| Photo Credit: Reuters

At least 19 Jordanian and Iranian pilgrims have died while on the haj pilgrimage in Saudi Arabia, authorities from their countries said on June 16, as temperatures soar in the kingdom.

“Fourteen Jordanian pilgrims died and 17 others were missing” during the performance of haj rituals, Jordan’s foreign ministry said in a statement. The Ministry later confirmed the 14 had died “after suffering sun stroke due to the extreme heat wave”.

Iranian Red Crescent chief Pirhossein Koolivand separately said “five Iranian pilgrims have lost their lives so far in Mecca and Medina during the haj this year”, without saying how they died.

The haj, one of the world’s biggest religious gatherings, is one of the five pillars of Islam and all Muslims with the means must perform it at least once. Temperatures have pushed well past 40 degrees Celsius during the annual pilgrimage that around 1.8 million Muslims are taking part in this year.

Many of the rituals are performed outdoors and on foot, creating challenges especially among the elderly.

Saudi Arabia has not provided any information on fatalities. However, the kingdom has implemented heat mitigation measures, including climate-controlled areas. It distributes water, and offers advice to pilgrims on protecting themselves from the sun.

During last year’s hajj at least 240 people — many from Indonesia — died, according to figures announced by various countries which also did not specify causes of death. More than 10,000 heat-related illnesses were recorded last year, 10% of them heat stroke, a Saudi official told AFP this week.

A Saudi study said regional temperatures were rising 0.4 C each decade, and worsening heat may be outpacing mitigation measures.

Riyadh:

Saudi Arabia’s King Salman has a lung infection and is undergoing a treatment programme involving antibiotics, the Royal Court said Sunday in the latest update on the ageing monarch’s health.

Earlier in the day, the court said King Salman was suffering from “high temperature” and joint pain and would undergo medical tests at Al-Salam Palace in Jeddah.

It was the second time in less than a month that the Saudi government had commented publicly about the 88-year-old king’s health.

The tests on Sunday “found that there was a lung infection”, and doctors decided on “a treatment programme consisting of antibiotics until the inflammation went away”, according to the latest royal statement published by the official Saudi Press Agency (SPA).

King Salman has been on the throne since 2015, though his son, Mohammed bin Salman, 38, was named crown prince in 2017 and acts as day-to-day ruler.

Saudi Arabia, the world’s biggest crude exporter, has for years sought to quell speculation over King Salman’s health.

The monarch’s health is rarely discussed, but the Royal Court disclosed in April that he had been admitted to King Faisal Specialist Hospital for “routine examinations”. He left the hospital later that day.

Prior to that, his most recent hospitalisation had been in May 2022, when he went in for a colonoscopy and stayed for just over a week for other tests and “some time to rest”, SPA reported at the time. 

In 2017, Riyadh dismissed reports and mounting speculation that the king was planning to abdicate in favour of Prince Mohammed.

King Salman underwent surgery to remove his gall bladder in 2020.

He was also admitted to hospital in March 2022 to undergo what state media described as “successful medical tests” and to change the battery of his pacemaker.

King Salman had served as Riyadh governor for decades and also as defence minister.

His reign as king has been marked by ambitious social and economic reforms largely managed by his son, who is trying to position Saudi Arabia for an eventual post-oil future.

Prince Mohammed has also overseen an intense crackdown on dissent that analysts say has helped him consolidate power.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Dubai:

Amnesty International called on Saudi Arabia to free a 29-year-old fitness instructor it says has been sentenced to 11 years in prison for her choice of clothing and social media posts urging an end to the kingdom’s male guardianship system.

Manahel Al-Otaibi was sentenced in January and details of her case emerged in Saudi Arabia’s formal reply to a request from the United Nations human rights office, London-based Amnesty said in a statement on Tuesday.

Amnesty and the London-based Al-Qst, a Saudi group that focuses on human rights in the kingdom, said Al-Otaibi was charged for posting the social media hashtag “Abolish male guardianship” and videos of her wearing what were deemed to be “indecent clothes” and shopping without an abaya, a long robe.

Saudi Arabia’s international media office did not respond to Reuters’ questions about the information given by Amnesty.

Saudi Arabia, in its formal reply to the U.N. rights office, denied that Al-Otaibi was sentenced for social media posts. It said she was “convicted of terrorist offences that have no bearing on her exercise of freedom of opinion and expression or her social media posts”.

The Saudi response, seen by Reuters, did not provide further details.

Saudi Arabia’s counter-terrorism law, under which Al-Otaibi was convicted, has been criticised by the United Nations as an overly broad tool to stifle dissent.

The U.N. human rights office did not immediately respond to a Reuters request for comment or to confirm the details of this case.

Amnesty said Al-Otaibi’s sister, Fawzia, faced similar charges but fled Saudi Arabia after being summoned for questioning in 2022.

“With this sentence the Saudi authorities have exposed the hollowness of their much-touted women’s rights reforms in recent years and demonstrated their chilling commitment to silencing peaceful dissent,” Bissan Fakih, Amnesty’s campaigner on Saudi Arabia, said in the statement.

The de facto Saudi ruler, Crown Prince Mohammed Bin Salman, came to power in 2017 promising sweeping social and economic reforms, and he eased some curbs in male guardianship laws.

Saudi women have since been able to drive cars, get a passport and travel on their own, register births and deaths, and divorce. The laws, however, still make it more difficult for women to obtain a divorce than a man.

The kingdom still faces scrutiny over its human rights record including a 2022 personal status law that codified many aspects of male guardianship, including male custody over children and permission for a woman to marry. Some provisions could facilitate domestic abuse, according to Amnesty.

Saudi Arabia eased dress codes for foreign women in 2019, but rights activists say that Saudi women continue to face restrictions.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

At a gleaming white hangar on Saudi Arabia’s western coast last year, the kingdom’s business and political elite gathered to applaud one of Crown Prince Mohammed bin Salman’s riskiest bets yet.

The first electric cars assembled in Saudi Arabia with Lucid Group Inc. twinkled under factory spotlights, designed to show the world how a kingdom built on oil could draw in foreign capital to become a global hub for the industries of the future.

The short-term reality is more complicated. California-based Lucid is increasingly guzzling Saudi money to stay in business. Last week it got a $1 billion cash lifeline from the kingdom, on top of the $5.4 billion Saudi Arabia’s Public Investment Fund (PIF) has already pumped in.

Lucid, which counts the PIF as its top shareholder, had been held up as an example of foreign firms investing in Saudi Arabia’s multi-trillion-dollar “Vision 2030” economic transformation plan. But Lucid’s need for Saudi money is one sign the country’s rushed attempt at reinvention is being paid for out of pocket, with the kingdom relying heavily on its oil riches to entice firms in. 

“The government had to give Lucid tremendous incentives to come,” said Karen Young, a Gulf-focused political economist at the Columbia University Center on Global Energy Policy.

It also speaks of the difficulties foreign companies face in Saudi Arabia, a country with little experience of complex manufacturing or heavy industry beyond the petroleum sector.

“Lucid is fully committed to our long-term partnership with the PIF and supporting the goals of Saudi Arabia’s Vision 2030,”  Chief Executive Officer Peter Rawlinson said in a statement to Bloomberg. “Lucid is creating hundreds, and eventually thousands, of new employment opportunities for Saudi talent.”

The PIF did not respond to a request for comment.

Saudi Arabia has long recognized its funding requirements would mostly be backed by local capital and only partly by foreign money. Still, it wants to hit $100 billion of foreign direct investment annually by 2030, a haul roughly three times bigger than it has ever achieved and about 50% more than what India gets today. Between 2017-2022 annual FDI inflows into the kingdom averaged just over $17 billion. Preliminary data for 2023 shows FDI below target, at about $19 billion, according to a statement from the Ministry of Investment.

Scaling up to the 2030 goal seems out of reach for now as foreign investors remain cautious, according to conversations with bankers, lawyers who advise investors and people with knowledge of Saudi Arabia’s fundraising efforts.

That’s led to a reckoning for the government as it weighs up the possibility of self-funding a larger portion of its economic remake on a tight timeline. Already, it has started to cut back on megaprojects designed to revamp its $1.1 trillion economy. And it’s issuing billions of dollars in bonds to help plug a fiscal deficit that it hadn’t been forecasting until late last year.

How it wields its money carries implications for its investments at home and abroad, and for oil policies that shape global markets.

‘Insanely Expensive’

The crown prince, or MBS as he is known, wants foreign investors to transfer expertise and co-fund megaprojects like the one to develop Neom. That $500 billion plan envisions turning the remote north-western region into a carbon-free high tech hub filled with robots.

While Neom has rolled out marketing and investor roadshows, it’s not made serious progress raising capital yet, people familiar with the matter said.

It’s not just along the less-developed coastline that projects are facing headwinds. Near the capital, an entertainment city dubbed Qiddiya has more than $1 trillion of committed spending – but that’s backed entirely by the PIF and a Saudi developer it owns,  two people briefed on the project said.

“If we don’t have clear evidence of more funding by the end of the year, then it’s certainly worth asking where the money is going to come from for these projects,” said David Dawkins from London-based investment data firm Preqin, which analyzes Saudi trends. “They are insanely expensive.”

Delays approving regulations for Neom have left question marks for investors. Many say their reluctance to commit funds to the kingdom is often down to unclear and untested laws governing contracts and investment.

There are signs the push for more external capital is gaining traction. There were 232 investment deals closed in 2023, many of which have “sizable” components of foreign investments that may start “working their way” into 2024 FDI numbers, the Ministry of Investment said in a statement.

More recently, Amazon.com Inc.’s cloud unit led a group of firms that agreed to invest more than $10 billion in Saudi data centers. 

Shrinking Money Pot

But the government, burning through cash, is stepping up efforts to attract much more foreign money. It asked smaller neighbor Kuwait for over $16 billion in financing for projects including Neom as recently as this year, people familiar with the matter said.

At stake for MBS are ambitions synonymous with Vision 2030. While companies like US-based Air Products have signed on for joint ventures at Neom, Saudi Arabia is still on the hook for underwriting close to the entirety of the cost – roughly equivalent to half its current economic output.

“It’s effectively still a public sector-led development model,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC. “At the moment they’re using all their pockets of strength for this transformation plan and I think going forward it will still be predominantly a Saudi-led development plan.”

How Saudi Arabia spends its cash will resonate around the world given its investing footprint now extends from a London airport to golf and private equity, making it a critical source of funds for Wall Street and governments alike. As the kingdom fills in the financing gaps at home, it will be leaning on earning money from the way it knows best: oil.

That realization is ushering in an approach that consolidates spending power in the hands of the PIF. The kingdom recently gave the fund an additional $164 billion stake in Saudi Aramco, which will translate into a dividend payment of at least $20 billion this year. 

The move is basically “raising money from one public pocket at the expense of the other,” said Mohamed Abu Basha, head of research at Cairo-based investment bank EFG Hermes. 

It shows how the kingdom remains reliant on on high oil prices to sustain its diversification plans, he said.

Saudi Arabia is likely to advocate longer production curbs by OPEC+, the oil cartel it leads along with Russia, that have helped prop up prices, said Jean-Michel Saliba, Bank of America Corp.’s Middle East and North Africa economist.

Yet for all that the cuts have restricted supply, prices remain below what the crown price requires to fund his grand ambitions. When accounting for domestic spending by the PIF, the kingdom needs crude of at least $108 a barrel to balance its budget, according to Bloomberg Economics. Brent’s jumped in recent weeks but remains below $90.

Mind the Gap

The PIF is feeling the pinch already. It controls assets of about $900 billion but had just $15 billion in cash reserves as of September.

The fund, which previously deployed almost 30% of its capital for international investments, is now targeting an allocation of 20% to 25%, though the absolute number is still set to rise over time, according to its governor, Yasir Al-Rumayyan.

“Our deployment will continue internationally but our focus right now is on the projects that we have in Saudi Arabia,” he said in February.

Finance Minister Mohammed Al-Jadaan has also acknowledged a funding shortfall and flagged the issuance of more debt. He’s been part of a committee chaired by MBS that studied Vision 2030’s massive financing needs and set them against the kingdom’s expected revenue streams.

“There was a gap,” he told the Thmanyah’s Socrates podcast. “We called it the Gap Study.”

Postponing and scrapping some projects will plug that hole, he said, without going into detail. 

That marks a crossroads for some of Saudi Arabia’s most ambitious projects. Those in Riyadh, where Expo 2030 is due to take place, may start taking priority. And some like Lucid will see the kingdom committing even more funds, not less. The kingdom sees it as part of a wider plan to build an autos supply chain, in which the PIF is also partnering with Hyundai Motor Co. and suppliers such as Italian tire-maker Pirelli & C. SpA.

But other Vision 2030 dreams will fade or be cut back, according to people familiar with the matter.

“Some of them were strategies where we said to ourselves: we actually do not need to spend on this,” Jadaan said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)