Saudi PIF Unloads US Holdings Amid Market Volatility

The Saudi Public Investment Fund (PIF) has divested its holdings in several major US companies, including Alibaba, Meta, FedEx, Shopify, PayPal, and Nu Holdings, in Q2. The fund sold off its stakes entirely, exiting these investments, amidst a volatile US stock market. PIF previously held significant shares in these companies.

The Saudi Public Investment Fund (PIF) has sold its entire stakes in several major U.S.-listed companies, including Alibaba Group, Meta Platforms, FedEx, Shopify, PayPal, and Nu Holdings, according to recent securities filings [1]. The divestments took place during the second quarter of 2025, amidst a volatile U.S. stock market that rebounded from an April drop tied to U.S. tariff policies [1].

At the end of March, PIF held significant shares in these companies. For instance, it owned 667,996 class A shares in Meta, 1.25 million class A shares in Shopify, and 1.76 million shares in PayPal [1]. By the end of the second quarter, PIF no longer held any shares in these companies, indicating a complete exit from these investments.

The divestments come as PIF, tasked with spearheading Saudi Arabia's economic diversification under Vision 2030, has expanded its portfolio beyond early holdings in Saudi public equities and infrastructure. In recent years, the fund has taken high-profile stakes in global brands like Uber and Lucid Motors, and has backed sports ventures including LIV Golf and English soccer club Newcastle United [1].

The total exposure of PIF to U.S. equities, including call options, was valued at $23.8 billion at the end of the second quarter, down from $25.5 billion at the end of the first quarter [1]. The decrease in value may be attributed to the fund's divestments and market volatility.

The move by PIF to divest these stakes could be part of a broader strategy to manage risk and diversify its investment portfolio. The fund has also been facing financial strains due to budget overruns and lower oil prices, which have necessitated spending adjustments [2].

Reference List:
[1] https://www.reuters.com/world/middle-east/saudi-wealth-fund-sold-its-stakes-meta-shopify-paypal-q2-2025-08-14/
[2] https://www.ainvest.com/news/oil-daily-vietnam-crude-purchase-saudi-budget-cuts-highlight-industry-shifts-2508/