SAMA’s Foreign Reserves Lift Total Assets Past SAR 2 Trillion

Saudi Central Bank’s balance sheet expanded to roughly SAR 2 trillion by the end of May 2025, marking an advance of around 5 percent from the prior year. This milestone reflects substantial accumulation in reserve assets, reinforcing the kingdom’s broader financial stability.

Total assets grew from SAR 1.9 trillion in May 2024 to SAR 2 trillion in May 2025. The increase of SAR 89.2 billion year-on-year, equivalent to a 4.7 percent rise, stands as the strongest annual pace since mid‑2022. Month-on-month growth was also notable, with SAMA adding SAR 81.1 billion in May alone.

A key contributor was the build‑up in foreign assets. Foreign currency holdings climbed to SAR 292.8 billion at the end of May 2025, up from SAR 272.2 billion a year earlier. Meanwhile, miscellaneous assets—including items such as deposits and derivatives—increased sharply to SAR 273.8 billion, compared to SAR 153.5 billion previously. Cash reserves in vaults also rose to SAR 25.5 billion from SAR 22.6 billion.

Conversely, investment in foreign securities, traditionally the largest asset component, edged lower to SAR 969.5 billion from SAR 1 trillion in the prior year. Gold reserves remained steady at SAR 1.6 billion. Deposits with overseas banks also saw a slight decline, dropping by approximately 1.5 percent year‑on‑year to SAR 436.9 billion.

These developments correspond with the International Monetary Fund’s May projection that SAMA’s net foreign assets were steady at $415 billion by end‑2024—sufficient to cover around 15 months of imports. The IMF further noted that the current account had swung into a marginal deficit in 2024, necessitating sustained reserve accumulation to support external buffers.

Economic analysts point to the kingdom’s robust non‑oil diversification agenda as a driving force behind this financial strengthening. Key sectors—construction, services, tourism—have posted solid growth, stimulating demand for foreign reserves. Simultaneously, tighter global monetary conditions have made holding diverse foreign assets prudent to manage external volatility.

Foreign currency inflows stem from sovereign fund investments, Saudi-based international remittances, and ongoing bond issuances—both domestic and international. Bank holdings of treasury bonds, with SAMA’s backing, rose to SAR 622.9 billion in May, suggesting parallel expansion in the kingdom’s fiscal toolkit.

In response to fluctuating global interest rates, SAMA maintained its repo rate at 5 percent and reverse repo at 4.5 percent, aligning with the Federal Reserve’s monetary policy tightening, while preserving the peg of the Saudi riyal. With inflation contained—headline CPI at about 2.3 percent in April 2025 —the central bank retains capacity to support domestic liquidity without undermining reserves.

SAMA governor’s public addresses have emphasised maintaining monetary and financial stability, with these strategic reserves forming a core pillar. Stabilisation of foreign exchange reserves supports confidence in economic policymaking and underpins international investor sentiment.

Sector experts caution, however, that global oil price volatility and geopolitical tensions remain risks. Should oil revenues soften, the central bank might need to deploy reserves to sustain currency stability. Moreover, rising fiscal debt—projected at around 26 percent of GDP by end‑2024—could increase pressure on reserves if external borrowing is required.