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Saudi Arabia’s PIF Curbs New Investments as Projects Face Financial Distress

Distressed megaprojects have prompted a near-term pause in fresh allocations, with the sovereign fund citing $60 billion in liquidity.

Overview

  • The New York Times reports the Public Investment Fund told some international investors it is unable to allocate more money for the foreseeable future.
  • A PIF spokesperson said the fund holds about $60 billion in cash and similar financial instruments and described its position as liquid by regional standards.
  • Projects reported to be in trouble include the Neom development, a nascent coffee chain, a single-ship cruise line, and an electric-vehicle startup yet to deliver cars.
  • Reporting says the fund is restructuring operations, with leadership changes at least at Neom, as it reassesses underperforming ventures.
  • The $55 billion Electronic Arts acquisition involving PIF, Silver Lake, and Affinity Partners remains pending and is targeted to close in the first quarter of EA’s 2027 fiscal year.