Saudi Arabia’s Public Investment Fund (PIF) said Wednesday that its investment value in US stocks fell by about $5.9 billion at the end of last year, decreasing from $36.8 billion in the third quarter to $30.94 billion in the fourth quarter of 2022.
The sovereign wealth fund did not invest in any new company in the last quarter of 2022, according to a regulatory filing. However, it increased its stake in electric automaker Lucid by about 93.75 million shares, but its value fell from $14.2 billion in the third quarter to $7.6 billion. PIF already owned more than 60% of Lucid.
At the end of 2022, the shares of Lucid were down 51%. PIF, which is at the center of Saudi Arabia’s ambitious plans to diversify its revenue streams from oil, invested about $1 billion in Lucid in 2018.
In the fourth quarter of last year, the wealth fund also increased its stakes in Activision Blizzard and marginally in Salesforce, while reducing its stake in Compote Health Education, Cobang Inc., and Farfetch Ltd., according to the fund’s disclosure in the US Securities and Exchange Commission (SEC).
The PIF said Tuesday it invested $1.3 billion in four contracting firms in the kingdom as it continues to support local entities in key sectors with significant contributions to the Gulf state's economy. The four companies are Nesma & Partners Contracting Company, ElSeif Engineering Contracting Company, AlBawani Holding Company, and Almabani General Contractors Company.
The $1.3 billion investment would give the sovereign wealth fund minority stakes in the Saudi firms and, simultaneously, shore up the capital of four companies to fund future projects and expansion programs. PIF expects its partnership with the local firms to further enhance the kingdom’s construction services sector by increasing their capacity, competencies, and opportunities for the local private sector.
On Monday, the wealth fund acquired a 30% stake in the Saudi Tabreed District Cooling Company or Saudi Tabreed, which underscores the PIF’s initiatives to develop the local utilities and low-carbon sectors.
