Saudi reserve assets rise to $459bn in May on foreign deposit surge
Data from the Saudi Central Bank, also known as SAMA, shows the reserve boost was primarily driven by a jump in foreign currency and deposits held abroad, which surged 15.5 percent from April to SR671.27 billion — the highest level in nearly six years.
The rise in reserves comes as Saudi Arabia navigates a shifting global economic landscape marked by volatile oil prices and rising project-driven imports.
While oil revenues remain a core contributor to external inflows, the Kingdom has also seen growing non-oil export activity and expanding tourism receipts under its Vision 2030 diversification push.
These factors, along with disciplined financial account management, have supported external balances and bolstered reserve accumulation, even as the current account surplus narrows.
Despite this sharp monthly uptick, reserves were still about 2 percent lower compared to May of the previous year, according to SAMA data.
The central bank's largest reserve component — investments in foreign securities — fell by roughly 2 percent month on month to around SR955 billion.
Together, these two categories — foreign currency deposits abroad and foreign securities — accounted for approximately 94.5 percent of Saudi Arabia's total reserve assets in May.
This suggests a deliberate allocation of reserves into more liquid foreign deposits, even as longer-term foreign securities slightly declined. Shifting more funds into overseas bank deposits could enhance liquidity, allowing the Kingdom quicker access to reserves when needed.
Other components include monetary gold, which has remained unchanged at SR1.62 billion since 2008; Special Drawing Rights, or SDRs, steady at SR80.16 billion; and Saudi Arabia's reserve position at the International Monetary Fund, totaling SR12.65 billion.
The IMF reserve position reflects the amount the Kingdom can access on demand from the fund without any conditions attached.
According to a January report from Fitch Ratings, in 2024, Saudi Arabia had strong foreign financial reserves. It could cover 14.4 months' worth of imports and external payments using its reserves — well above the average of around 2 months for countries with a similar credit rating.
Also, Saudi Arabia's net foreign assets — total assets abroad minus external liabilities — stood at 63.7 percent of gross domestic product, compared to an average of just 8.7 percent for other 'A'-rated countries. This highlights the Kingdom's robust financial cushion.
Overall, the rise in reserves to SR1.72 trillion, driven by strategic allocation to foreign deposits and sustained by prudent reserve management, signals continued resilience and confidence in Saudi Arabia's economic fundamentals. This upward trend also enhances the Kingdom's ability to absorb external shocks, maintain currency stability, and support long-term investment goals aligned with Vision 2030.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
19 minutes ago
- Arab News
Saudi delivery volumes surge to 101m in Q2 amid logistics push
RIYADH: Saudi Arabia's delivery sector processed more than 101 million orders in the second quarter of 2025, driven by surging e-commerce demand and ongoing investments in logistics infrastructure, official data showed. According to the latest report from the Transport General Authority, Riyadh accounted for 45.04 percent of the total delivery volume, followed by Makkah at 21.17 percent and the Eastern Province with 15.87 percent. Saudi Arabia's delivery and rail sector expansion aligns closely with the National Transport and Logistics Strategy, which aims to position the Kingdom as a global logistics hub by 2030. Key NTLS goals include increasing the sector's gross domestic product contribution to 10 percent, expanding rail networks to 8,080 km, boosting port throughput to 40 million Twenty-foot Equivalent Units annually, and enhancing air cargo capacity beyond 4.5 million tonnes. Other regions contributed smaller shares to the total delivery volume in the second quarter, including Al Madinah at 4.65 percent, Asir at 3.56 percent, and Al Qassim at 2.89 percent. Northern and less populated areas recorded modest volumes, with Al Baha at 0.21 percent, Northern Borders at 0.54 percent, Najran at 0.66 percent, and Al Jouf at 0.77 percent. This growth in delivery activity coincides with broader momentum in Saudi Arabia's transport and logistics infrastructure. In the first half of 2025, Saudi Arabia Railways recorded over 7.9 million passengers across 21,205 passenger train trips, an 8 percent increase from the previous year. The rail network also supported the 1446 Hajj season, transporting over 4.3 million pilgrims via the Haramain High-Speed Railway and nearly 5.1 million pilgrims through the Mashaer Train network. On the freight side, SAR moved more than 14.9 million tonnes of cargo during the same period, marking a 13 percent year-on-year increase. These logistics gains were reinforced by Saudi Arabia's active participation in key industry events and strategic partnerships with local and international firms. SAR's involvement in major exhibitions and forums, alongside collaborations with companies such as STC, Lucid, Turkish Airlines, and SDAIA, underscores the Kingdom's push to elevate transport capabilities and digital integration. Additionally, SAR's recognition through ISO certifications and national quality awards reflects the growing emphasis on service excellence and governance in the sector. Supported by regulatory reforms, digital transformation, and infrastructure investment, the National Transport and Logistics Strategy aims to leverage Saudi Arabia's strategic location to enhance multimodal connectivity and position the Kingdom among the world's top ten in the Global Logistics Performance Index.
Arab News
an hour ago
- Arab News
Saudi cabinet backs Syria reconstruction efforts, urges global action to end Gaza war and aid blockade
Ministry of culture highlights 2024 achievements in historic Jeddah JEDDAH: The Saudi Ministry of Culture has unveiled a series of landmark achievements in the revitalization of Historic Jeddah, illustrating continued progress under the directive of Crown Prince Mohammed bin Salman. Launched in 2021, the project plays a key role in the national strategy to preserve the Kingdom's heritage and enhance its cultural landscape, aligning with the objectives of Saudi Vision 2030. In 2024, the ministry successfully restored 27 historic buildings, rehabilitated an additional 10 structures, and supported the stabilization of 39 others, fortifying the district's unique architectural identity. As part of broader adaptive reuse efforts, the first three heritage hotels opened their doors, delivering luxury experiences steeped in authenticity. This is the beginning of an initiative to transform 34 heritage buildings into boutique accommodations that merge cultural heritage with modern hospitality. Important archaeological findings further enriched Jeddah's historical narrative. Excavations at the Othman bin Affan Mosque revealed Ceylonese wooden fragments on mihrab pillars dating back to the 1st century AH (7th century CE). Also, the discovery of a 13th-century pottery shard reaffirmed Jeddah's long-standing status as a pivotal maritime and commercial hub linking the Islamic world to the Far East. In a milestone of urban regeneration, the ministry completed Phase I of the Al-Arbaeen Lagoon waterfront project, which included the removal of obstructive infrastructure to reconnect the sea with the historic Al-Bunt Port. In parallel, 90,000 sq. meters of green space were developed, significantly enhancing the environmental and visual quality of the district. To enhance operational readiness, 110 pieces of equipment were used to service a six-sq. kilometer area. Historic Jeddah is also going through a surge in cultural engagement. The Red Sea International Film Festival was hosted at Culture Square for the first time, attracting local and international audiences. Simultaneously, the ministry inaugurated the teamLab Borderless Jeddah museum, spanning 10,000 sq. meters, and launched a Performing Arts and Cinema Centre, offering immersive experiences that bridge traditional heritage with contemporary expression. A significant step in skills development was marked by the opening of the Royal Institute for Traditional Arts, which promotes local craftsmanship and empowers Saudi youth to participate in cultural restoration. To integrate leisure with heritage, the ministry introduced Irth, a concept store and cafe that blends cultural offerings with a modern hospitality experience. In support of long-term sustainability, the ministry signed six strategic agreements aimed at bolstering investment and enhancing cultural infrastructure. A dedicated digital tourism platform was also launched to provide comprehensive access to landmarks, events, and visitor services in the district. In 2024, more than 140 educational trips were organized, engaging 2,100 students in immersive cultural experiences. To enrich visitor journeys, 500,000 copies of the official visitor map were distributed. These efforts contributed to a record-breaking 5.7 million visitors to Historic Jeddah over the year, including 2.5 million during Ramadan. As part of the Historic Jeddah Master Plan, the Ministry of Culture is committed to restoration, infrastructure enhancement, and improving livability. These endeavors aim to position the district as a global destination for cultural tourism and creative industries, reflecting the ambitions of Saudi Vision 2030 and celebrating the Kingdom's enduring cultural legacy.
Arab News
an hour ago
- Arab News
Saudi real estate transactions hit $320bn
RIYADH: Saudi Arabia's real estate market recorded transactions worth around SR1.2 trillion ($319.8 billion) between July 2023 and July 2025, under the implementation of a new property initiative, according to a recent announcement. The figure was revealed by the General Real Estate Authority after the second edition of the Real Estate Brokerage Forum 2025, held at the Riyadh International Convention and Exhibition Center, the Saudi Press Agency reported. Saudi Arabia's real estate sector is transforming under Vision 2030, which aims to raise homeownership to 70 percent by 2030, up from about 63.7 percent in 2023. The plan focuses on expanding mortgage lending, diversifying financing, and doubling mortgage activity through wider bank participation. Tayseer Al-Mufarrej, general director of strategic communication and official spokesperson for the authority, highlighted the system's impact during his keynote address, saying that it has led to over 8 million real estate transactions and the licensing of more than 86,000 brokers, alongside the approval of 75 digital platforms that host over 685,000 authorized listings. The shift is driven by Vision 2030 and the Real Estate Brokerage Law, introduced in 2022, which aims to professionalize property transactions through standardized contracts, broker licensing, and stricter oversight to boost transparency and protect consumers. 'Al-Mufarrej noted that the system had brought about a fundamental transformation in the structure of the sector by turning brokerage into a licensed profession governed by regulations and defined responsibilities and obligations,' SPA said. Within its first year, transactions rose by 17 percent, totaling SR605 billion in deals and prompting the licensing of tens of thousands of individual and corporate brokers, as well as digital platforms. In the forum's first panel discussion, titled Legislative Updates and Empowerment Opportunities in the Real Estate Brokerage System, speakers said that the sector now operates within an enabling regulatory framework that supports growth. They described the current environment as the most significant regulatory transformation in the sector's history, aimed at boosting reliability and sustainability. A second panel discussion, titled 'From Value Creation to Sustainable Sales,' addressed the ongoing urban development in the Kingdom. Participants praised the governance measures and planning standards that have improved residential neighborhoods and elevated the quality of life. The forum, organized by the authority, is part of broader efforts to enhance the real estate business environment, supporting economic growth and aligning with the comprehensive national real estate strategy.
