Saudi Arabia’s Public Investment Fund (PIF), one of the largest sovereign wealth funds globally, has unveiled significant adjustments in its investment portfolio for Q2 2025. According to the fund’s 13F filing released on August 14, PIF has strategically increased its focus on the healthcare sector while reducing its exposure to several tech and consumer-focused companies.
The Focus on Healthcare
PIF’s recent moves reflect a growing confidence in the healthcare sector. Among its new additions were industry giants like UnitedHealth Group (NYSE: UNH), Eli Lilly (NYSE: LLY), and Vertex Pharmaceuticals (NASDAQ: VRTX). The healthcare market continues to present new opportunities, particularly in the wake of advancements in personalized medicine and telehealth technologies.
Increased stakes in companies like Mastercard (NYSE: MA) and Home Depot (NYSE: HD) further suggest PIF’s diversification efforts, aiming to balance between high-growth potential and stable market leaders.
Reduction in Tech and Retail Giants
At the same time, PIF reduced positions in several notable companies, including Salesforce (NYSE: CRM), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Starbucks (NASDAQ: SBUX), and AMD (NASDAQ: AMD). This cautious approach might align with broader concerns regarding valuation and volatility in these sectors.
Significant Portfolio Holdings
Even with these changes, PIF’s largest disclosed holdings still include major global brands. Uber (NYSE: UBER) comprises about 28.54% of the portfolio, followed by Electronic Arts (NASDAQ: EA) at 16.64%, Lucid Group (NASDAQ: LCID) at 15.69%, and Take-Two Interactive (NASDAQ: TTWO) at 11.64%, emphasizing strong confidence in transportation and entertainment industries.
The Future of NEOM and Domestic Investments
On the domestic front, the NEOM project—a flagship initiative of PIF designed to build a futuristic city—has faced challenges. Its valuation dropped by 12.4% to $56.2 billion, now making up just 6% of PIF’s portfolio compared to 8% the prior year. This setback stems from operational delays and fluctuating global energy prices. Despite recent hurdles, NEOM remains a cornerstone of Saudi Arabia’s diversification goals.
PIF has also shifted focus toward increasing domestic investments, minimizing its international holdings to 17% of total assets from 20% a year earlier. This aligns with Saudi Arabia’s Vision 2030 program aimed at reducing reliance on oil revenues.
Challenges Amid Global Trends
The adjustments come amid weaker oil prices and heightened fiscal pressures. PIF reported an $8 billion write-down last year, yet its total assets under management surged to $913 billion by late 2024, showcasing its enduring strength as a financial powerhouse.
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