RIYADH: Two years after incurring losses due to Credit Suisse’s collapse, Saudi Arabia’s Public Investment Fund has decided to stop allocating funds to Switzerland’s financial markets. According to Bloomberg, PIF Governor Yasir Al-Rumayyan stated at the FII PRIORITY Europe Summit in Albania that the decision was motivated by how Swiss authorities handled the government-backed Credit Suisse bailout by UBS Group in 2023.
The sudden transaction, which was carried out without the consent of shareholders, impacted investors around the Middle East. One of the biggest sovereign wealth funds in the world, PIF, is reviewing its approach to investing in light of mounting worries about investor protection and regulatory stability.
The fund’s decision to stop investing in Switzerland’s financial markets, a significant change in strategy, highlights the long-term effects of the 2023 Credit Suisse failure on institutional and regional investor trust. Additionally, PIF keeps growing throughout Europe, indicating a shift of capital.
We will not invest in Switzerland’s financial markets. It’s a serious red signal if you make a change overnight and lose all of your investors, Bloomberg cited Al-Rumayyan’s statement. The comments were delivered in an on-stage conversation with Noel Quinn, the recently appointed chairman of Julius Baer Group Ltd., a company located in Zurich.
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