RIYADH:聽海角直播鈥檚 Public Investment Fund will no longer allocate capital to Switzerland鈥檚 financial markets, two years after suffering losses from the collapse of Credit Suisse.
During the FII PRIORITY Europe Summit in Albania, PIF Gov. Yasir Al-Rumayyan said that the decision was driven聽by the manner in which聽Swiss regulators handled the 2023 government-backed rescue of Credit Suisse by UBS Group, reported Bloomberg.
The abrupt deal was executed without shareholders鈥 approval, impacting investors across the Middle East.
PIF, one of the world鈥檚 largest聽sovereign wealth funds, is reassessing its investment strategy amid growing concerns over regulatory stability and investor protection.
The fund鈥檚 decision to halt investments in Switzerland鈥檚 financial markets marks a significant shift in its approach, underscoring the long-term impact of the 2023 Credit Suisse collapse on regional and institutional investor confidence.
PIF also continues to expand its footprint across Europe, signaling a redirection of capital.
鈥淲e鈥檙e not going to invest in the financial markets in Switzerland. If you change something overnight and wipe out all of your investors, this is a big red flag,鈥 Al-Rumayyan said, as reported by Bloomberg.
The remarks were made聽during an on-stage discussion with Noel Quinn, newly appointed chairman of Zurich-based Julius Baer Group Ltd.
Quinn responded: 鈥淎s the chairman of a Swiss bank as of 10 days ago, that concerns me.鈥
The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price.
The plunge became worse聽after the former chairman of the Saudi National Bank, Ammar Al-Khudairy, said the bank would 鈥渁bsolutely not鈥 be open to further investments in Credit Suisse.
鈥淭he deal didn鈥檛 receive approval from either Credit Suisse or UBS shareholders as regulators and lawmakers rushed to contain a crisis of confidence that was聽spreading across global markets,鈥 according to Bloomberg.
The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price. Shutterstock
At the time, shareholders from the Middle East, including SNB and the Qatar Investment Authority, collectively held around 20 percent of Credit Suisse.
SNB, which was聽the largest shareholder in the Swiss lender, had called on Credit Suisse to reject the offer from UBS, Bloomberg reported.
Other investors had cautioned that the Swiss government鈥檚 decision to override standard merger procedures and sideline shareholder votes could deter institutional investors.
Legal analysts also warned that the rushed nature of the transaction had undermined Switzerland鈥檚 standing as a reliable investment destination where the rule of law is safeguarded.
Al-Rumayyan鈥檚 remarks came as PIF announced plans to open a subsidiary office in Paris and committed to doubling its investments in Europe to $170 billion by the beginning of the next decade.
The fund has already聽deployed approximately $85 billion across the region between 2017 and 2024, making strategic investments in key European economies, including the UK, France, and Italy.
