Saudi Arabia's Sovereign Wealth Fund Exits Major U.S. Stocks in Q2, Reduces Exposure to U.S. Equities

Saudi Arabia's Public Investment Fund (PIF) has sold its entire holdings in several US companies, including Shopify, Alibaba, Meta, and FedEx, in Q2. The fund also reduced its exposure to Prologis and Pinterest. PIF's total exposure to US equities decreased to $23.8 bln from $25.5 bln. These moves align with Saudi Arabia's Vision 2030 strategy to diversify the economy beyond oil. The fund reported an $8 bln write-down in its "giga-projects," including NEOM development.

Saudi Arabia's Public Investment Fund (PIF) has significantly reduced its exposure to several US companies, including Shopify, Alibaba, Meta, and FedEx, during the second quarter of 2025. This strategic realignment aligns with Saudi Arabia's broader economic diversification strategy under Vision 2030. The fund reported an $8 billion write-down in its "giga-projects," including NEOM development, further underscoring its commitment to diversifying its investment portfolio.

The Saudi Public Investment Fund (PIF) has announced the dissolution of its share stakes in Meta, Alibaba, and FedEx [2]. This move is part of the fund's ongoing efforts to restructure its investment portfolio and focus on strategic sectors. The dissolution comes as PIF aims to streamline its holdings and allocate resources to more promising opportunities within the tech and logistics industries. The fund's decision to divest from these companies reflects its strategy to focus on sectors that align more closely with its long-term vision.

The total exposure to US equities decreased to $23.8 billion from $25.5 billion, indicating a significant reduction in the fund's holdings in US companies [2]. This strategic realignment is part of the fund's broader effort to diversify its investments and support the Kingdom's economic diversification initiatives under Vision 2030. By dissolving these stakes, PIF aims to allocate resources to more promising opportunities within the tech and logistics industries, aligning with its long-term investment goals.

The fund's decision to reduce its exposure to Prologis and Pinterest, along with the dissolution of stakes in other US companies, reflects a broader shift in investment strategy. This move is in line with the Kingdom's vision to diversify its economy beyond oil, as outlined in Vision 2030. The fund's focus on strategic sectors such as tech and logistics is expected to contribute to the Kingdom's long-term economic growth and sustainability.

References:
[1] https://www.ainvest.com/news/saudi-arabia-public-investment-fund-sells-stake-meta-alibaba-fedex-2508/
[2] https://www.globenewswire.com/news-release/2025/08/13/3132341/28124/en/Saudi-Arabia-10-2-Bn-Automotive-Components-Markets-Competition-Forecast-Opportunities-2030F.html