Prime Highlight
- Saudi Arabia’s reserve assets grew by SR8.4 billion, reflecting the Kingdom’s strong financial position and liquidity.
- The increase supports long-term economic stability and the country’s Vision 2030 transformation initiatives.
Key Facts
- Foreign currency reserves, making up 94.5% of total reserves, rose nearly 3% year-on-year to SR1.64 trillion.
- The Kingdom’s IMF reserve position increased 5% to SR12.8 billion, while SDRs grew 4% to SR80.6 billion; monetary gold remained steady at SR1.62 billion.
Background
Saudi Arabia’s reserve assets grew by SR8.4 billion, reflecting the continued strength and liquidity of the Kingdom’s financial position as it advances its Vision 2030 economic transformation. The central bank, SAMA, said the increase supports the country’s long-term goal of building a strong financial safety net during ongoing diversification efforts.
Reserve assets are a key indicator of economic stability and include foreign securities, foreign currency, and bank deposits, along with the Kingdom’s reserve position at the International Monetary Fund, Special Drawing Rights (SDRs), and monetary gold.
Foreign currency reserves, which form the bulk of the total at 94.5%, recorded a solid increase of nearly 3% year on year, reaching SR1.64 trillion. The Kingdom’s reserve position at the IMF also rose by 5% to SR12.8 billion, while SDRs increased by 4% to SR80.6 billion.
Meanwhile, monetary gold holdings remained unchanged at SR1.62 billion, a level that has stayed steady since 2008. Analysts say the stability reflects a long-term approach to managing gold within the reserves.
Saudi Arabia has steadily increased its overall reserves, which strengthens its financial safety and keeps the national currency stable. A strong reserve base lets SAMA protect the riyal’s fixed value against the US dollar, which is a key part of the country’s monetary policy. It also boosts investor confidence and lowers borrowing costs.
The growing reserves help Saudi Arabia handle global economic challenges and continue funding major development programs under Vision 2030. The financial cushion lets the government support public finances, maintain monetary stability and continue progress in national transformation initiatives.
