Saudi Arabia Goes Green

By Douglas McIntyre  •  October 16, 2025
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Saudi Arabia is working against its own best interest. It is funding renewable energy to the tune of billions of dollars, and plans to invest more. The investments may also be risky. With the world awash in crude oil, renewables may not offer much of a return.

According to Semafor,  “Saudi Arabia’s sovereign wealth fund plans to accelerate its issuance of green bonds in order to finance a widening array of projects tied to the energy transition.” The fund is known as the PIF (Public Investment Fund)

The PIF continues to offer these bonds, but the sums they provide are not enough. Demand for the money is far, far greater than the amount that PIF offers. 

Flooded With Oil

Because renewables are considered risky, bonds issued elsewhere have performed poorly in the market.

Even if PIF tripled its commitment, it would not be enough to fund all the “unfunded” legitimate green projects that cannot get capital elsewhere. “Elsewhere” is worried about extreme risk. Renewables in many parts of the world are still considered bad investments, even though in some nations, particularly China, renewable installations are surging. 

The US withdrawal from the renewables sector and has flooded the world with crude (along with Saudi Arabia), making the near-term future of renewables even more tentative.

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