Saudi Wealth Fund Sells Tech Holdings, Exits Meta and Alibaba

The Saudi Public Investment Fund (PIF) significantly reduced its exposure to US-listed companies in Q2, exiting positions in Meta, PayPal, Alibaba, and Shopify. The fund's holdings in US companies decreased from $43.6bn in March to $36.5bn in June. The PIF's move comes as part of its efforts to diversify its portfolio and reduce risk.

The Saudi Public Investment Fund (PIF) has significantly reduced its exposure to U.S.-listed companies in the second quarter of 2025, according to recent 13F filings with the U.S. Securities and Exchange Commission (SEC). The fund exited positions in major firms including Meta Platforms Inc. (META.O), Shopify Inc. (SHOP.TO), PayPal Holdings Inc. (PYPL.O), Alibaba Group Holding Ltd. (BABA), and Nu Holdings (NU.N) [1, 2, 3].

The PIF's holdings in U.S. companies decreased from $25.5 billion at the end of the first quarter to $23.8 billion at the end of the second quarter, representing a decline of $1.7 billion [1]. This reduction comes as part of the fund's ongoing efforts to diversify its portfolio and reduce risk.

The PIF, tasked with spearheading Saudi Arabia's economic diversification under Crown Prince Mohammed bin Salman’s Vision 2030 plan, has been shifting its focus towards global brands, sports ventures, and infrastructure projects. In recent years, the fund has taken high-profile stakes in companies such as Uber Technologies Inc. (UBER.N), Lucid Motors, and Electronic Arts Inc. (EA), while also backing sports ventures like LIV Golf and English soccer club Newcastle United [1].

The PIF's move to reduce its exposure to U.S. equities follows a broader trend of diversification within the fund's portfolio. The fund's total exposure 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]. This reduction highlights the fund's strategy to mitigate risk and align with its long-term investment objectives.

The PIF's shift in focus is part of a broader trend of diversification within the fund's portfolio, aiming to reduce reliance on a single market or sector. By reducing its exposure to U.S. equities, the PIF is positioning itself to take advantage of growth opportunities in other sectors and regions.

References:
[1] Reuters. (2025, Aug 14). Saudi Arabia's almost $1 trillion sovereign wealth fund sold its stakes in several U.S.-listed companies - including Meta (META.O), Shopify (SHOP.TO) and PayPal (PYPL.O) - in the second quarter, according to securities filings released on Thursday. Retrieved from https://www.reuters.com/world/middle-east/saudi-wealth-fund-sold-its-stakes-meta-shopify-paypal-q2-2025-08-14/
[2] Seeking Alpha. (2025, Aug 14). Saudi Arabia's nearly $1 trillion sovereign wealth fund significantly cut its exposure to U.S.-listed companies in the second quarter, according to securities filings released Thursday. Retrieved from https://seekingalpha.com/news/4485888-saudi-wealth-fund-slashes-us-tech-holdings-in-q2-exits-meta-paypal-alibaba?feed_item_type=news
[3] Arabian Business. (2025, Aug 14). Saudis' PIF sold its entire holding in Meta, Shopify and FedEx in Q2. Retrieved from https://www.arabianbusiness.com/industries/banking-finance/saudis-pif-sold-its-entire-holding-in-meta-shopify-fedex-and-alibaba-in-q2