Saudi Arabia’s Foreign Reserves Climb to SR1.72 Trillion in May, Driven by Surge in Overseas Deposits

Saudi Arabia’s official reserve assets rose to SR1.72 trillion ($459 billion) in May, marking a 4.5 percent increase from the previous month, according to the latest data released by the Saudi Central Bank (SAMA). The rise was primarily fuelled by a sharp jump in foreign currency and deposits held abroad — the highest level seen in nearly six years.

Foreign currency holdings abroad surged 15.5 percent month-on-month to SR671.3 billion, reflecting a strategic reallocation of reserves toward more liquid assets. SAMA figures show that this category, along with foreign investments in securities — which stood at SR955 billion, down 2 percent from April — accounted for 94.5 percent of total reserve assets in May.

The increase in foreign deposits suggests a shift in reserve management strategy, with greater emphasis on liquidity and quicker accessibility in times of need. Analysts view this as a prudent move amid global economic uncertainty and fluctuating oil prices.

Despite the monthly growth, May’s reserve figure remains around 2 percent lower than the same period in 2024, indicating that the Kingdom continues to manage its external position carefully as it balances rising imports and long-term investments.

Other components of the reserve portfolio remained stable. Saudi Arabia’s monetary gold reserves were unchanged at SR1.62 billion, while Special Drawing Rights (SDRs) held steady at SR80.16 billion. The Kingdom’s reserve position at the International Monetary Fund (IMF) stood at SR12.65 billion — an amount it can access on demand without conditions.

The positive reserve figures come as Saudi Arabia continues to pursue its Vision 2030 agenda, aimed at reducing economic reliance on oil. Growth in non-oil exports and record tourism revenues have helped maintain external inflows, even as the current account surplus narrows.

A January report by Fitch Ratings noted that Saudi Arabia maintains one of the strongest reserve positions among its credit peers. The Kingdom can cover approximately 14.4 months of imports and external payments, well above the two-month average for similarly rated countries. Net foreign assets were also reported at 63.7 percent of GDP — a significant buffer compared to the 8.7 percent average for other “A”-rated economies.

The latest increase in reserves underscores Saudi Arabia’s continued resilience and effective financial management, supporting its ability to maintain currency stability, absorb external shocks, and fund long-term economic diversification efforts.