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Saudi Wealth Fund Cut US Stocks by $3 Billion Last Quarter

Saudi Wealth Fund Cut US Stocks by $3 Billion Last Quarter
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Saudi Wealth Fund Cut US Stocks by $3 Billion Last Quarter

Saudi Wealth Fund Cut US Stocks by $3 Billion Last Quarter

Saudi Arabia's sovereign wealth fund cut its exposure to North American equities by $3 billion in the third quarter, offloading some exchange traded funds (ETF) and stocks including Berkshire Hathaway BRKa.N, a regulatory filing showed.

The Public Investment Fund (PIF) was holding $7.05 billion worth of US equities as of Sept. 30, compared with nearly $10.12 billion in the second quarter, the filing showed late on Monday. The fund cut its holdings of ETFs to $1.96 billion by Sept. 30, from nearly $4.7 billion in the second quarter.

In recent months, the sovereign wealth fund had bulked up minority stakes in companies worldwide, including oil companies, taking advantage of market weakness caused by the COVID-19 pandemic.

In the previous quarter, it moved part of those investments into real estate, materials and utilities ETFs. In the third quarter, it was holding only the utilities ETF, Reuters reported.

“In terms of strategy, there has always been a sense that PIF is trying to play catch-up with regional peers, but wants to fast-track the kind of returns that investments by other sovereign funds generated over many years,” said Rachna Uppal, director of research at Azure Strategy, a Middle East-focused consultancy.

The latest filing showed that PIF sold some stocks, including Berkshire Hathaway, Canadian Natural Resources and Cisco Systems in the third quarter, and bought 13 million shares of Novagold Resources.

PIF, which manages $360 billion worth of funds, pursues a two-pronged strategy - building an international portfolio of investments and investing locally in projects that will help reduce Saudi Arabia’s reliance on oil.

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Saudi Arabia Tackles Carbon Management Challenges at COP 29

Speakers participate in a discussion session in the Saudi pavilion during the COP29. (Asharq Al-Awsat)
Speakers participate in a discussion session in the Saudi pavilion during the COP29. (Asharq Al-Awsat)
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Saudi Arabia Tackles Carbon Management Challenges at COP 29

Speakers participate in a discussion session in the Saudi pavilion during the COP29. (Asharq Al-Awsat)
Speakers participate in a discussion session in the Saudi pavilion during the COP29. (Asharq Al-Awsat)

During a panel discussion titled, “The Carbon Management Challenge: Scaling Carbon Management to Gigaton Levels” at the Saudi Pavilion at COP 29, speakers highlighted the critical role of international collaboration in advancing carbon capture technologies and emphasized Saudi Arabia’s ambitious goal of achieving net-zero emissions by 2060.

The discussion focused on Saudi Arabia’s adoption of the Circular Carbon Economy framework, which centers on four key pillars: reducing emissions, reusing carbon, recycling, and removing carbon.

The participants pointed to the importance of international cooperation in developing new carbon capture technologies and establishing independent carbon transport and storage projects. According to reports, over 50 advanced carbon capture and storage (CCS) projects are currently in progress globally, with a combined capacity of 50 million tons. Furthermore, investment decisions have been made for 44 additional CCS projects under development around the world.

The session also explored advancements in various industries, such as the cement sector. Countries like Japan, China, and European nations have made significant progress in carbon capture technologies, while emerging economies such as Canada and Thailand are working on financing decarbonization efforts in the cement industry.

The speakers underscored the crucial role of governments in enabling these initiatives by making financial investments and developing the necessary infrastructure. They also pointed out that supportive government policies are essential for driving these projects forward and fostering collaboration between the public and private sectors. This aligns with the Clean Energy Ministerial’s focus on advancing policies for carbon capture, utilization, and storage technologies.

The participants further stressed that global goals to reduce emissions and combat climate change can only be achieved through international cooperation, robust policy frameworks, and the sharing of expertise across all stakeholders.