Saudi Arabia's Public Investment Fund Boosts US Holdings to $23.8 Billion, Rebalances Portfolio
The sovereign wealth fund expands its US equity investments while shifting focus towards semiconductors and healthcare.
Riyadh: Saudi Arabia's Public Investment Fund (PIF) has increased its US equity holdings to approximately $23.8 billion by the second quarter of 2025, up from around $20.6 billion a year prior.
According to PIF's latest Form-13F filing with the US Securities and Exchange Commission, the sovereign wealth fund now holds positions across 57 equities and options, compared to 38 holdings in the previous year, but with a distinct shift in portfolio composition.PIF exited stakes in prominent companies such as Meta Platforms, PayPal, Alibaba, Shopify, and other e-commerce and social-media names.
Conversely, the fund has significantly bolstered its investments in Lucid Group, an electric-vehicle maker, increasing its holdings by nearly 400 million shares, and more than doubling its stake in chip designer Arm Holdings.The sovereign wealth fund also expanded its portfolio to include Apple, ASML, Analog Devices, and leading US healthcare giants such as UnitedHealth, Eli Lilly, and Merck.
This strategic pivot towards semiconductors and healthcare reflects PIF's evolving investment strategy.As Saudi Arabia's key economic diversification tool under Vision 2030, PIF is tasked with building national champions, fostering job creation, and attracting foreign investments across various sectors including tourism, technology, and infrastructure.
With a dual mandate of delivering returns and driving economic transformation, PIF stands as not only one of the world's largest sovereign wealth funds but also a crucial policy instrument in shaping Saudi Arabia's post-oil future.The recent rebalancing of PIF's portfolio comes amid its intensified investment drive both domestically and internationally.
According to Global SWF, PIF's assets under management rose to $1.15 trillion by 2025, placing it fourth among sovereign wealth funds globally.
This growth marks a transition from rapid deployment to a more measured approach focused on cost control and return-on-investment.Approximately 37 percent of PIF's portfolio is invested in alternatives such as real estate, infrastructure, private equity, and hedge funds, with more than two-thirds of its assets deployed within Saudi Arabia.
Since 2021, the fund has invested over $171 billion domestically, representing around 10 percent of the Kingdom's non-oil gross domestic product.Despite a significant increase in assets, PIF reported a 60 percent decline in net profit to SR26 billion in 2024 due to higher interest rates, impairments, and project delays.
In response, PIF has adopted measures such as liquidity management through commercial paper and sukuk, and a focus on revenue-generating assets.PIF's commitment to governance, sustainability, and resilience earned it a perfect 100 percent score, positioning the fund at the top of its peer group within the Europe, Middle East, and Africa region according to Global SWF.The diversification strategy has also led to notable international investments.
PIF signed agreements with major US asset managers to invest up to $12 billion in Saudi markets and establish a multi-asset platform in Riyadh.
Additionally, the fund is exploring a substantial investment in Brazil's renewable energy and green hydrogen industries.However, challenges persist as PIF grapples with funding costs and liquidity constraints, leading to management restructuring and a focus on projects with clear paths to profitability.
The fund must balance its domestic objectives, such as supporting mega-projects and job creation, with growing international ambitions across technology, mobility, gaming, and sports sectors.As PIF's US portfolio shifts from consumer internet to semiconductors and healthcare, the sovereign wealth fund signals confidence in long-term innovation while acknowledging the need for steady returns amidst a challenging global environment.
This strategic evolution combined with its rising global rank and deeper domestic investments illustrates how PIF is transforming into a more mature and diversified investor.
According to PIF's latest Form-13F filing with the US Securities and Exchange Commission, the sovereign wealth fund now holds positions across 57 equities and options, compared to 38 holdings in the previous year, but with a distinct shift in portfolio composition.PIF exited stakes in prominent companies such as Meta Platforms, PayPal, Alibaba, Shopify, and other e-commerce and social-media names.
Conversely, the fund has significantly bolstered its investments in Lucid Group, an electric-vehicle maker, increasing its holdings by nearly 400 million shares, and more than doubling its stake in chip designer Arm Holdings.The sovereign wealth fund also expanded its portfolio to include Apple, ASML, Analog Devices, and leading US healthcare giants such as UnitedHealth, Eli Lilly, and Merck.
This strategic pivot towards semiconductors and healthcare reflects PIF's evolving investment strategy.As Saudi Arabia's key economic diversification tool under Vision 2030, PIF is tasked with building national champions, fostering job creation, and attracting foreign investments across various sectors including tourism, technology, and infrastructure.
With a dual mandate of delivering returns and driving economic transformation, PIF stands as not only one of the world's largest sovereign wealth funds but also a crucial policy instrument in shaping Saudi Arabia's post-oil future.The recent rebalancing of PIF's portfolio comes amid its intensified investment drive both domestically and internationally.
According to Global SWF, PIF's assets under management rose to $1.15 trillion by 2025, placing it fourth among sovereign wealth funds globally.
This growth marks a transition from rapid deployment to a more measured approach focused on cost control and return-on-investment.Approximately 37 percent of PIF's portfolio is invested in alternatives such as real estate, infrastructure, private equity, and hedge funds, with more than two-thirds of its assets deployed within Saudi Arabia.
Since 2021, the fund has invested over $171 billion domestically, representing around 10 percent of the Kingdom's non-oil gross domestic product.Despite a significant increase in assets, PIF reported a 60 percent decline in net profit to SR26 billion in 2024 due to higher interest rates, impairments, and project delays.
In response, PIF has adopted measures such as liquidity management through commercial paper and sukuk, and a focus on revenue-generating assets.PIF's commitment to governance, sustainability, and resilience earned it a perfect 100 percent score, positioning the fund at the top of its peer group within the Europe, Middle East, and Africa region according to Global SWF.The diversification strategy has also led to notable international investments.
PIF signed agreements with major US asset managers to invest up to $12 billion in Saudi markets and establish a multi-asset platform in Riyadh.
Additionally, the fund is exploring a substantial investment in Brazil's renewable energy and green hydrogen industries.However, challenges persist as PIF grapples with funding costs and liquidity constraints, leading to management restructuring and a focus on projects with clear paths to profitability.
The fund must balance its domestic objectives, such as supporting mega-projects and job creation, with growing international ambitions across technology, mobility, gaming, and sports sectors.As PIF's US portfolio shifts from consumer internet to semiconductors and healthcare, the sovereign wealth fund signals confidence in long-term innovation while acknowledging the need for steady returns amidst a challenging global environment.
This strategic evolution combined with its rising global rank and deeper domestic investments illustrates how PIF is transforming into a more mature and diversified investor.