Saudi Arabia’s Major Projects in ‘Uneven’ Progress, Moody’s Says

According to Moody's Investors Service, Saudi Arabia's progress on its major infrastructure projects has been "uneven" due to several challenges. These challenges include engineering constraints, a shortfall in private investment, and lower oil prices. The report highlights that while some projects, such as the $500 billion NEOM city, are progressing, others, like the Qiddiya entertainment city, have faced delays. Moody's notes that the kingdom's ability to attract private investment has been hampered by global economic conditions and the ongoing COVID-19 pandemic. The rating agency also cautions that the lower oil prices have put pressure on the government's finances, potentially impacting the pace and scope of these ambitious projects. Nevertheless, Moody's recognizes that the Saudi government remains committed to these transformative initiatives, which are central to its broader economic diversification efforts.