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), the kingdom's nearly $1 trillion sovereign wealth fund, has substantially reduced its exposure to U.S.-listed companies in the second quarter of 2025. According to recent securities filings, the PIF exited positions in major firms including Meta (NASDAQ:META), Shopify (SHOP.TO), PayPal (PYPL.O), Alibaba Group, and FedEx (FDX.N) [2].

The PIF's holdings in U.S. companies decreased from $43.6 billion at the end of March to $36.5 billion by the end of June. The fund no longer holds any shares in Meta, Shopify, PayPal, Alibaba, Nu Holdings (NU.N), or FedEx, as indicated in the 13F filings [2].

This move aligns with the PIF's broader strategy of diversifying its portfolio and reducing risk. The fund has been actively involved in various sectors, including technology, sports, and infrastructure, under the Vision 2030 plan spearheaded by Crown Prince Mohammed bin Salman [1]. However, the PIF has also faced significant challenges, including an $8 billion write-down on some of its gigaprojects, such as NEOM, due to cost overruns and delays [3].

The PIF's decision to reduce its exposure to U.S. equities comes at a time when U.S. stock markets have rebounded from an April drop tied to U.S. tariff policies [2]. This strategic shift underscores the fund's commitment to balancing its investments and adapting to changing market conditions.

References:

[1] https://seekingalpha.com/news/4485888-saudi-wealth-fund-slashes-us-tech-holdings-in-q2-exits-meta-paypal-alibaba
[2] https://www.reuters.com/world/middle-east/saudi-wealth-fund-sold-its-stakes-meta-shopify-paypal-q2-2025-08-14/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3U608J:0-saudi-gigaprojects-take-8-billion-hit-in-reality-check-for-diversification-efforts/