The consortium said that it was with "regret" that it had pulled out."As an autonomous and purely commercial investor, our focus was on building long-term value for the club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a hard period of global uncertainty and significant challenges for the fans and the club", the investor group said in a statement.
The PIF, chaired by Prince Mohammad bin Salman, had been set to take an 80 percent stake under the proposed deal, which was criticised by human rights groups.
A Saudi-backed consortium on Thursday announced it had ended its bid to buy Newcastle United after months of waiting for approval from the Premier League.More news: Samsung Galaxy M31s launched in India, price starts at Rs 19499
Newcastle finished 13th in the recently completed Premier League season to secure another year of lucrative television rights.
But the Investment Group made a decision to end their interest, citing the worldwide uncertainty caused by the coronavirus pandemic and the "prolonged process" they found themselves involved in.
Shearer, who also managed the Tyneside club briefly in 2009, said fans" hopes had been raised of a change of ownership which would enable them to truly compete with the Premier League's "Big Six'.
But after the process was hampered by claims regarding Saudi Arabia's human rights record and its handling of TV piracy, the buyers said the delays had brought about a change of course.More news: 10 facts on the new turn in Sushant Singh Rajput case
"The piracy issue was not an issue but we tried to resolve it anyway", she said.
On Thursday, it was revealed Saudi had appealed against that ruling.
The bid was held up by apparent demands from the Premier League to establish a clear link between the PIF and the Saudi state.
Retail tycoon Ashley is a deeply unpopular figure among the Newcastle support for his treatment of fans and an unwillingness to invest on the field to improve the Magpies' fortunes.More news: Virgin Galactic reveals what tourists can expect inside its spacecraft
After 18 weeks of dilly-dallying, the Premier League failed to reach a conclusion whether they should allow them the green signal to get the deal done.