“PIF’s reduction in US equity holdings should not necessarily be viewed as a retreat from US markets, but rather as part of a broader portfolio recalibration and capital allocation strategy,” said Tony Hallside, CEO of STP Partners.
He added that Saudi Arabia is in the midst of a major domestic transformation under Vision 2030, and, naturally, the fund is becoming more selective and concentrated in its international capital deployment.
“Saudi Arabia’s insurance sector continues to benefit from strong structural drivers, particularly regulatory reform, compulsory insurance lines and broader economic diversification linked to Vision 2030,” said Tony Hallside, CEO of STP Partners.
Tony Hallside, chief executive of STP Partners in Dubai, says most portfolios look diversified on paper but are more concentrated than investors realise. “A typical allocation today is heavily exposed to a small group of large-cap tech names."
Investors should not panic and shift funds out of riskier areas, but should reduce concentration, Mr Hallside says. “The key is to avoid being exposed to the same macro risk through multiple channels, whether that is AI-driven equity concentration or leveraged credit exposure.”
Tony Hallside, CEO of STP Partners, said that Fitch’s analysis points to a clear differentiation in performance, with investment-grade sukuk maintaining stronger liquidity profiles than lower-rated segments.
“Sovereign, supranational and asset-backed sukuk in particular have shown the highest levels of liquidity and the lowest declines,” he said.
Hallside said this reinforces what is consistently seen in the GCC, where high-quality issuers, particularly those linked to government or strategic sectors such as infrastructure, continue to provide a strong foundation for market resilience.
