Saudi Arabia Turns to Wealthy Families for Funding

Broadening the search for capital

Saudi Arabia is widening its hunt for funding by turning to the kingdom’s wealthiest families as pressure mounts on public finances. The government is seeking to tap private capital to support the next phase of Crown Prince Mohammed bin Salman’s Vision 2030 economic overhaul.

PIF outreach

As part of the initiative, the Public Investment Fund gathered around a dozen prominent families at a meeting on the Red Sea last month to assess their appetite for future investment opportunities. According to people familiar with the matter, the $1 trillion sovereign wealth fund called for deeper collaboration between the state and private investors.

Strain on public spending

Years of elevated expenditure, softer oil revenues and tighter lending conditions have made it harder for Riyadh to bankroll its ambitious development agenda alone. Authorities have already postponed the 2029 Asian Winter Games and scaled back spending on several flagship projects, including parts of Neom.

Family offices in focus

Family-owned businesses dominate Saudi Arabia’s private sector, accounting for roughly 95% of companies. Collectively, these families control assets worth hundreds of billions of dollars, and many are only now formalising family offices as they seek to manage wealth across generations.

Shifting investment priorities

With banks pulling back amid tighter liquidity, family offices are increasingly exploring alternative investments. Private credit, venture capital, technology and artificial intelligence are gaining traction, while real estate remains a core allocation as the kingdom opens its property market to foreign developers in need of local partners.

Conclusion

As International Investment experts note, Saudi Arabia’s pivot toward domestic family wealth marks a strategic effort to diversify funding sources beyond the state. The effectiveness of this approach will hinge on regulatory clarity and the government’s ability to align long-term national projects with private investors’ risk and return expectations.