Saudi Arabia Scales Back Vision 2030 Amid Regional War

The Government of Saudi Arabia has begun scaling back its ambitious Vision 2030 development goals, including the Neom project and The Line, due to the ongoing war between the United States, Israel, and Iran. Regional instability and unprecedented attacks on oil infrastructure, combined with a blockade of the Strait of Hormuz, have severely disrupted the kingdom's exports and deterred international investors.

To safeguard its economic stability and critical infrastructure, the kingdom is attempting to mediate an end to the conflict. Saudi officials face existential risks, including potential Iranian strikes on desalination plants and the threat of Houthi militia blocking the Bab al-Mandeb Strait, which would halt oil exports through the port of Yanbu. While some exports have been diverted through Red Sea ports, volumes remain below pre-war levels.

Seeking to reduce its dependence on the United States, Saudi Arabia has formed a quad partnership with Pakistan, Turkey, and Egypt to lead mediation efforts. Meanwhile, President Donald Trump is weighing a multi-phased ceasefire proposal from Iran, as Gulf allies express concern that U.S. prioritization of Israeli security interests has marginalized their own regional stability.