Saudi Arabia’s sovereign wealth fund has significantly reduced its holdings in US-listed stocks, selling its entire positions in nearly a dozen companies including Pinterest Inc. and Linde Plc. The move brought the total value of the Public Investment Fund’s (PIF) American equity portfolio to $19.4 billion in the third quarter, its lowest point in almost a year.
PIF Sells Stakes in Major US Firms
The $1 trillion PIF also divested its full stakes in Prologis Inc. and Air Products and Chemicals Inc., a company involved in developing a green hydrogen plant in Saudi Arabia’s Neom mega-project. According to a regulatory filing, the fund’s US portfolio value dropped by approximately 18% from the previous period.
While it pared back its holding in Lucid Group Inc., the PIF maintained its positions in Uber Technologies Inc. and Electronic Arts Inc. The third-quarter sales continue a trend of divestment from US markets, following previous exits from major firms like Meta Platforms Inc. and FedEx Corp.
A Strategic Shift Towards Domestic Projects
This strategic shift aligns with the PIF’s growing focus on prioritising local investment to support the kingdom’s ambitious economic diversification plans. The focus on domestic growth contrasts with other regional strategies, such as efforts that have seen Dubai become a key US investment hub.
Chaired by Crown Prince Mohammed bin Salman, the PIF is the primary vehicle for implementing Saudi Arabia’s Vision 2030 programme. This national strategy includes the development of several mega-projects, such as the futuristic city of Neom and the Diriyah historical site, part of a broader regional boom in large-scale property development that includes ventures like the Apparel Group’s first residential project in Dubai. These initiatives are central to the kingdom’s goal of reducing its reliance on oil revenue.
Future Investment Outlook
The PIF’s increased focus on the local economy comes as subdued oil prices place greater pressure on the government’s budget. Despite these challenges, the fund plans to increase its capital deployment in the coming years. It has stated an aim to invest $70 billion annually after 2025, with the majority directed towards Saudi investments. In 2024, the fund deployed $57 billion across key priority sectors, according to its annual report.
The sell-off of US equities underscores the PIF’s deliberate pivot towards funding its domestic transformation agenda. As the fund prepares to unveil its 2026-2030 investment strategy early next year, its actions signal a clear commitment to fuelling growth at home and realising the goals of Vision 2030.
