The Public Investment Fund (PIF) hasn't cancelled projects in the NEOM giga project, according to Governor Yasir Al-Rumayyan.

The project company has been directed to reorganise expenditure to maximise return on investment, he told  Al Arabiya Business, adding that the process is part of an ongoing reassessment.

According to a March 2026 Zawya Projects report, NEOM terminated several construction contracts linked to the giga project in the first quarter of 2026, with the combined value of cancelled or affected works potentially exceeding $5 billion, based on disclosures by contractors including Italy's Webuild, South Korea's Hyundai Engineering & Construction and Malaysia's Eversendai Corporation.

Al-Rumayyan stated in the Al Arabiya Business interview that the idea that The Line represents the entirety of NEOM is a misconception, adding that it is just one component of the bigger development.

He said that the next phase of NEOM and other mega-projects will aim to achieve targets with reduced direct funding from the PIF and increased private sector participation.

Al-Rumayyan said PIF has invested SAR 750 billion within the Kingdom since 2015, while attracting foreign investments exceeding SAR 75 billion from 2021 to 2025, reflecting the growing attractiveness of investment opportunities associated with its projects.

The fund’s assets under management have risen from SAR 500 billion in 2015 to over SAR 3 trillion, driven by the expansion of domestic and international investments and by the strengthening of the fund’s role in the national economy. 

On Wednesday, the PIF board, chaired by Crown Prince Mohammed bin Salman, approved the fund’s 2026–2030 strategy with investments distributed across three portfolios, namely the Vision portfolio covering six sectors, Strategic investments focusing on strategic assets and PIF-owned companies and Financial investments focussing on diversified global investments.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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