RIYADH: º£½ÇÖ±²¥â€™s official reserve assets reached SR1.72 trillion ($459 billion) in May, marking a roughly 4.5 percent increase from the previous month.Â
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.Â
The rise in reserves comes as º£½ÇÖ±²¥ navigates a shifting global economic landscape marked by volatile oil prices and rising project-driven imports.Â
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.  Â
These factors, along with disciplined financial account management, have supported external balances and bolstered reserve accumulation, even as the current account surplus narrows. Â
Despite this sharp monthly uptick, reserves were still about 2 percent lower compared to May of the previous year, according to SAMA data.Â

The Saudi Central Bank said the reserve boost was primarily driven by a jump in foreign currency and deposits held abroad. Wikipedia
The central bank’s largest reserve component — investments in foreign securities — fell by roughly 2 percent month on month to around SR955 billion.  Â
Together, these two categories — foreign currency deposits abroad and foreign securities — accounted for approximately 94.5 percent of º£½ÇÖ±²¥â€™s total reserve assets in May. Â
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.  Â
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 º£½ÇÖ±²¥â€™s reserve position at the International Monetary Fund, totaling SR12.65 billion. Â
The IMF reserve position reflects the amount the Kingdom can access on demand from the fund without any conditions attached.Â
According to a January report from Fitch Ratings, in 2024, º£½ÇÖ±²¥ 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. Â
Also, º£½ÇÖ±²¥â€™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 “Aâ€-rated countries. This highlights the Kingdom’s robust financial cushion.  Â
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 º£½ÇÖ±²¥â€™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. Â