Saudi Arabia's sovereign wealth fund (Public Investment Fund, PIF), a key tool for diversifying the kingdom's economy away from oil, is facing a shortage of liquid assets for new investments. This was reported to the New York Times by sources familiar with the fund's operations.
In recent years, the Saudis have been actively investing in global assets, including the video game industry. The fund has acquired stakes in publishers Take-Two Interactive and Nintendo, and recently participated in a $55 billion deal to acquire Electronic Arts jointly with Silver Lake and Affinity Partners.
However, according to 11 NYT sources, the fund is forced to suspend new investments due to the financial difficulties of several megaprojects. Among them is the ambitious city of the future Neom with robotic staff, a ski resort and beaches made of marble chips, a chain of coffee shops, a cruise line with a single ship, and an electric vehicle startup.
In response, PIF is restructuring operations: the prince has already fired the head of Neom, and the fund plans to refocus on traditional assets, such as shares of public companies.