Saudi Arabia's plans for the 2034 World Cup have changed
Saudi Arabia's Public Investment Fund (PIF) has decided to cut costs and put the brakes on stadium projects planned for the 2034 World Cup.
Saudi Arabia's Public Investment Fund (PIF) has decided to cut costs and put the brakes on stadium projects planned for the 2034 World Cup. According to The Guardian, the kingdom is preparing to slash its massive construction budgets.
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Many architectural firms have been told that current designs are "too expensive" and that they must submit lower-cost plans. The start dates of some projects have been postponed.
Saudi Arabia's proposal to FIFA included 15 stadiums. However, the expectation in the industry is that this number may be reduced in order to manage costs.
Behind the austerity measures is the pressure on state oil company Aramco's revenues as oil prices fall and global demand declines. The PIF plans to cut its spending by at least 20% by 2025.
In particular, the stadium and other massive entertainment projects planned for the 500-meter-high futuristic city project Neom (The Line) are expected to be affected.
Although officials say the tournament is still nine years away and such adjustments are "the natural course of business", some companies are at risk of losing contracts if they cannot cut costs.
