Latest news with #SAMA
Zawya
13 hours ago
- Business
- Zawya
Saudi banking sector assets hit $1.2trln in 2024
RIYADH — Saudi Arabia's financial sector exceeded key Vision 2030 benchmarks in 2024, with total banking sector assets reaching SR4.49 trillion, or 131% of the program's target of SR3.43 trillion, according to the annual report released Sunday by the Financial Sector Development Program (FSDP). The report highlights the sector's achievements in supporting economic growth and outlines strategic goals for the coming years. Among the key indicators, the Tadawul All Share Index (TASI), excluding Aramco, reached a market capitalization of 86.7% of GDP, while private credit accounted for 69% of GDP. Insurance premiums reached 2.59% of non-oil GDP, surpassing the 2024 target by 9%. Small and medium enterprise (SME) loans made up 9.4% of total lending, hitting 94% of the annual goal. Assets under management stood at 26.3% of GDP, reaching 89% of the target. Finance Minister Mohammed Al-Jadaan, who chairs the FSDP committee, said the report reflects the Kingdom's continued success in bolstering financial resilience and enabling broader economic transformation. He noted that fintech continues to play a vital role in sector growth, with 261 licensed fintech firms operating by the end of 2024. In parallel, the Saudi Central Bank (SAMA) approved the launch of D360 Bank, a digital-only financial institution, as part of the Kingdom's push toward a cashless economy. Digital payments surged to 79% of total consumer transactions last year, underscoring the sector's digital maturity. Al-Jadaan also noted continued momentum in the capital markets, with 44 new company listings in 2024 bringing the total number of listed firms to 353. The report, Al-Jadaan said, showcases the scale of reform and growth across all sectors of the Kingdom in this transformative era under the leadership of King Salman and Crown Prince Mohammed bin Salman. The Financial Sector Development Program is one of the key Vision 2030 initiatives, aimed at building a diversified, resilient economy and strengthening Saudi Arabia's regional and global standing in financial services. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
4 days ago
- Business
- Arab News
Saudi money supply surges to $824bn as savers embrace high-interest deposits
RIYADH: Saudi banks' money supply M3 reached SR3.09 trillion ($824.3 billion) in May, rising about 9.39 percent from the same period last year. According to data by the Saudi Central Bank, also known as SAMA, time and savings deposits accounted for 35.16 percent of the total, slightly below the 16-year peak of 35.2 percent recorded in March, but still representing the highest share since 2009. The expansion has been driven by a marked shift in deposits. Savers are increasingly locking their money into term deposits to take advantage of higher interest rates. These interest-bearing accounts have grown at the fastest pace among all money categories, reflecting depositors' preference for higher returns amid a high-rate environment. Term deposits offer better interest in exchange for keeping funds for a fixed period, and therefore tend to gain popularity when interest rates are elevated. Despite this shift, demand deposits — funds in checking accounts that can be withdrawn on demand — remain the single largest component of the money supply, at around SR1.5 trillion, or roughly 48.6 percent of M3. That share has edged down from over 49 percent a year ago as more savers move into interest-yielding options. Meanwhile, other quasi-money deposits, such as foreign currency accounts and certain short-term instruments, represent roughly 8 percent or SR250 billion of the total, and physical currency in circulation outside banks adds about SR246 billion, according to SAMA data. As the US Federal Reserve embarked on aggressive rate hikes over the past two years to curb inflation, SAMA mirrored those moves to maintain the currency peg. This pushed Saudi interest rates to multi-year highs, peaking around 6 percent late last year. With inflation pressures subsequently easing, the US Fed began to loosen policy, implementing rate cuts totaling 100 basis points by the end of 2024. The rate relief was expected to continue into 2025. Indeed, by January, signs emerged that the deposit mix was starting to rebalance, as demand deposits began regaining ground once benchmark rates had come off their peak, according to SAMA data. Any further rate cuts were abruptly put on hold amid renewed global inflation concerns. Speaking earlier this month at the European Central Bank's annual forum in Sintra, Portugal, Federal Reserve Chair Jerome Powell said the Fed would probably be in a position to begin cutting rates were it not for the inflationary impact of President Donald Trump's new tariffs, according to Bloomberg. Central bankers expect Trump's import tariffs to lift inflation, so they have adopted a cautious 'wait-and-see' stance before resuming any rate reductions. As a result, the Fed has kept rates steady in recent months, after having trimmed about 100 basis points late last year, with the risk of inflationary pressure from tariffs delaying further easing. Given that SAMA typically mirrors Fed decisions to defend the riyal's dollar peg, this pause in US rate cuts has likewise led the Saudi central bank to hold its rates, keeping domestic borrowing costs elevated. Banks, in turn, have been competing for deposits by offering better returns on time accounts, a strategy to shore up liquidity while credit demand stays strong. Looking ahead, officials and analysts foresee an eventual turning point in the interest rate cycle. Goldman Sachs, for example, now projects that the Fed will begin cutting rates later in 2025, delivering three quarter-point rate cuts by the end of the year, up from two cuts in its earlier forecast, according to a July article by Bloomberg. Until that pivot materializes in interest rates, Saudi banks and their customers are capitalizing on the elevated returns offered by term deposits — a trend that has pushed savings deposits to record highs and fundamentally altered the composition of the Kingdom's money supply.
CairoScene
5 days ago
- Business
- CairoScene
Foreign Investments in Saudi Arabia Rise 16% to Over SAR 3 Trillion
Foreign investments in Saudi Arabia surged 16% in early 2025, surpassing SAR 3 trillion for the first time, with net inflows rising 44% and direct investment hitting nearly SAR 1 trillion. Foreign investment in Saudi Arabia rose in early 2025, reaching SAR 3.05 trillion by the end of the first quarter - a 16% increase compared to the same period in 2024, according to the Saudi Central Bank (SAMA). This is the first time the Kingdom's foreign investment stock has crossed the SAR 3 trillion mark. Direct foreign investment accounted for SAR 995.5 billion, or roughly a third of the total. Portfolio investments, including shares, equity funds, and debt instruments, reached SAR 1.24 trillion, while other forms of investment contributed SAR 808.4 billion. The Kingdom also saw a 44% increase in net inflows, which reached SAR 22.2 billion, fuelled by a 24% rise in inward flows and a sharp 54% drop in outflows, down to SAR 1.8 billion. In 2024, Saudi Arabia attracted USD 26 billion in foreign direct investment, exceeding the government's annual target. However, the figures reflect growing global confidence in the Kingdom's economic reforms and investment climate as part of Vision 2030.
Arab News
5 days ago
- Business
- Arab News
Saudi POS spending up 5% in early July driven by hotel sector
RIYADH: Saudi Arabia's point-of-sale transactions climbed 5 percent to SR14.3 billion ($3.81 billion) in the week ending July 5, driven by increased spending across multiple sectors. The latest data from the Kingdom's central bank, also known as SAMA, showed that hotels led the growth, registering the largest jump in transaction value, up 22.7 percent to SR260.74 million. The sector also saw an 18 percent rise in the number of transactions, reaching 802 million. According to SAMA's bulletin, the telecommunication division followed, recording a 9.8 percent increase in transaction value to SR136.09 million. Public utilities spending ranked next, rising 8.8 percent to SR56.92 million, with transactions up 7.2 percent to 740 million. Food and beverages — responsible for the largest share of total POS value among the defined categories — recorded a 6.9 percent increase to SR2.13 billion. Transportation spending rose 4.1 percent to SR776.28 million, while restaurants and cafes saw a 3.5 percent increase, totaling SR1.95 billion and claiming the second-biggest share of this week's POS. Miscellaneous goods and services claimed the third-largest share of the total transaction value, with an uptick of 8.6 percent to SR1.79 billion. The smallest spending gains were in gas stations, rising by 1.1 percent to SR974.03 million, and electronics, which increased by 3 percent to SR187.56 million. The health and furniture sectors also saw upward changes, increasing by 3.7 percent and 8 percent to reach SR871.34 million and SR289.99 million, respectively. On the downside, spending on education dipped by 33.5 percent to SR141.12 million, followed by a 6 percent decrease in spending on jewelry. Recreation and culture followed the trend, falling 2.3 percent to SR287.79 million. Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.87 billion, a 3.9 percent increase from the previous week. Jeddah followed with a 6.8 percent rise to SR2.06 billion, while Dammam ranked third, up 1 percent to SR680.17 million. Tabuk saw the smallest increase, inching up 0.1 percent to SR278.76 million, followed by Khobar with a 0.5 percent uptick to SR387.48 million. Hail recorded 4.21 million deals in transaction volume, up 6.4 percent, while Makkah reached 8.9 million transactions, rising 8.8 percent.
Zawya
6 days ago
- Business
- Zawya
Foreign investments in Saudi Arabia jump 16% to $800bln by 1Q 2025
JEDDAH — Foreign investments in the Saudi economy have exceeded SR3 trillion by the end of the first quarter of 2025. According to the data released by the Saudi Central Bank (SAMA), foreign investments increased for the first time during this period to SR3,048.5 billion, a 16 percent increase compared to the same period in 2024. Foreign investments include foreign direct investment (FDI), which represents 33 percent of the total, equivalent to SR995.5 billion; portfolio investments, which include equity, investment fund shares, and debt securities valued at SR1,244.6 billion; and other investments valued at SR808.4 billion. It is noteworthy that foreign investment inflows into Saudi Arabia jumped by 24 percent during the first quarter of 2025, reaching SR24 billion (approximately $6.4 billion). On the other hand, outflows amounted to SR1.8 billion ($480,000), a 54 percent decrease, bringing net foreign investment inflows to SR22.2 billion ($5.9 billion), a 44 percent increase compared to the same quarter last year, according to data from the General Authority for Statistics (GASTAT). During the year 2024, foreign direct investment (FDI) inflows to Saudi Arabia reached approximately $26 billion, exceeding the interim target set by the government. These indicators showed an increase in the attractiveness of the Saudi economy for foreign direct investment during the first quarter of 2025, despite the decline in outflows compared to the same period last year. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
