TLDR:
– Neom, Saudi Crown Prince’s mega-project, facing budget cuts due to lower oil prices
– Jordan’s tech startups receive new venture capital funding
The flagship mega-project of Saudi Crown Prince Mohammed bin Salman, Neom, is facing budget cuts due to lower oil prices. The development along the Red Sea coast is expected to be allocated 20% less than its targeted budget for this year. This revision comes as Saudi Arabia reconciles lower-than-expected oil prices and foreign investment, leading to projected national budget deficits for at least three years. The modifications to the Vision 2030 plan, according to Saudi Finance Minister Mohammed Al-Jadaan, are necessary to prevent overheating the economy and causing inflation to rise. Analysts view the adjustments as a sign of maturity and sensibility in managing projects.
In contrast, Jordan’s tech startups have received a boost with the announcement of new venture capital funding. The $98 million Innovative Startups and SMEs Fund in Jordan will invest $5 million in the UAE-based Global Ventures Fund III to support Jordanian entrepreneurs and startup companies. This investment is seen as a positive development at a time when global startup investments are facing challenges. Small and medium-sized enterprises and start-ups are a significant part of Jordan’s private sector, driving economic growth and employment opportunities.
Additionally, there are new challenges for Microsoft’s $1.5 billion AI deal with UAE-based G42 as Republicans in Congress raise concerns about the deal’s ties to China. The lawmakers have requested an intelligence assessment of G42’s connections with China’s Communist Party and government before the deal proceeds. China has expressed interest in intensifying trade and investment exchanges with Saudi Arabia, particularly in areas such as infrastructure, energy resources, and the digital economy.
