Saudi Arabia's Economy Liquidity Surges By $65.7 Billion By October 2024
The Saudi Arabian economy has witnessed a substantial influx of liquidity, demonstrating a robust monetary foundation essential for ongoing growth and stability. Data from the Saudi Central Bank, also known as SAMA, reveals that the total liquidity, or the available money within the economy, has seen a significant year-on-year increase.
By the end of October 2024, the liquidity levels had surged to SAR2,936.089 billion ($781.39 billion) from SAR2,688.442 billion ($715.51 billion), marking a 9.2% growth. Such figures underscore the Kingdom's positive trajectory in economic development, fueled by a strong increase in the broad money supply indicator (M3).
This growth in liquidity is not only observed on an annual basis but also quarterly, with a 1.5% increase recorded by the end of Q3 2024. This period saw liquidity levels reach SAR2,943.661 billion, up from SAR2,898.706 billion at the close of the second quarter. Since the beginning of 2024, the Saudi economy has added more than SAR215 billion in liquidity, demonstrating an 8% increase from its starting level of SAR2,720.957 billion in January. Such data further illustrates the Kingdom's capacity to foster economic and commercial activities, paving the way for its continued economic expansion.
A closer look at the components contributing to this liquidity reveals that Demand Deposits lead at 49%, amounting to SAR1,425.489 billion by October 2024. Following closely, "Time and Savings Deposits" constitute the second-largest portion, representing 33% of the total liquidity with a value of SAR971.103 billion.
Additionally, "Quasi-Monetary Deposits" stand as the third-largest contributor at 11%, totaling SAR312.506 billion. Currency in circulation outside banks also plays a significant role, accounting for 8% of the total liquidity, valued at SAR226.991 billion.
Quasi-monetary deposits, specifically, encompass a variety of financial instruments. These include residents' foreign currency deposits, deposits linked to letters of credit, outstanding transfers, and repurchase agreements (repos) executed by banks with the private sector. Such diverse contributions to the liquidity levels indicate the multifaceted nature of the Saudi economy's monetary base, which supports its sustained growth and financial stability.
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