Saudi Arabia’s PIF Ramps Up Financial Discipline as Uber Becomes Top U.S. Holding

Saudi Arabia’s Public Investment Fund (PIF) has identified Uber Technologies Inc. as its most valuable U.S. holding, with a market valuation of $5.31 billion. The fund’s stake in Uber, unchanged at 72.84 million shares, surged in value due to rising stock prices, according to PIF’s latest regulatory filing with the U.S. Securities and Exchange Commission.

Meanwhile, the market value of PIF’s long-standing stake in Lucid Group Inc. dropped to $4.29 billion, down from over $5.3 billion at the end of 2024, despite no change in the 1.77 billion shares held.

Overall, PIF’s U.S. equity portfolio declined slightly to $25.55 billion by the end of March, compared to $26.77 billion in the previous quarter. The drop was largely attributed to market-driven valuation changes rather than strategic divestments, with most shareholdings remaining stable.

The fund also reported significant derivative positions, including call options tied to leading tech firms like Amazon, Microsoft, Meta, and Alphabet. These options provide capital-efficient exposure to the tech sector without direct share ownership. Notable positions include options controlling 961,300 shares of Adobe and 1.2 million shares of Alphabet.

In terms of equity changes, PIF nearly doubled its stake in PayPal Holdings and increased investments in companies such as Amazon, Zoetis, Micron Technology, and Lam Research, signaling a selective expansion in high-growth sectors.

Parallel to its investment activities, PIF continues to raise capital to support Saudi Arabia’s Vision 2030 transformation plan. In May, it secured $1.25 billion through a sukuk issuance, attracting over $8.2 billion in orders and narrowing pricing spreads to 110 basis points above U.S. Treasuries. This marks the second debt issuance of the year and demonstrates strong investor confidence in PIF’s financial strategy.

However, behind the scenes, the fund is undergoing a period of fiscal recalibration. Reports suggest PIF is slashing 2025 budgets across its portfolio by at least 20 percent, with some flagship megaprojects like NEOM and the Red Sea Project facing cuts as high as 60 percent. The moves come amid weaker-than-expected oil revenues, a downward revision in Brent oil forecasts to $66 per barrel, and shrinking government income from Aramco dividends.

Despite budget constraints, PIF has raised $5.25 billion in 2025 through a mix of bonds, sukuks, and credit facilities. Analysts say the fund is shifting toward economically viable infrastructure and co-investment deals with major global firms like Goldman Sachs, BlackRock, and Brookfield. The goal is to mobilize up to $70 billion annually while preserving long-term financial sustainability.

Analysts view the changes not as a retreat, but a strategic pivot — signaling PIF’s evolution from high-spending investor to disciplined economic steward, setting a potential model for sovereign wealth funds globally.