Saudi Arabia's Liquidity Levels Increase By Over SAR 275 Billion In November 2024

In 2024, Saudi Arabia's economy saw a notable rise in liquidity levels, reaching SAR2,945,656 million by November's end. This marked a 10.3% annual increase, equivalent to SAR275,155 billion, compared to the same period in 2023 when liquidity was SAR2,670,501 million. These figures are based on the broad money supply (M3) as detailed in the Saudi Central Bank's (SAMA) November 2024 monthly statistical bulletin.

Demand deposits played a significant role in the broad money supply (M3), making up 48.8% or SAR1,436,392 million by November 2024. Time and savings deposits followed closely behind, contributing 33.6% with a value of SAR989,986 billion. Quasi-cash deposits accounted for 9.9%, reaching SAR292,630 billion. Currency circulating outside banks contributed 7.7%, valued at SAR226,647 billion.

The broad money supply (M3) is composed of several elements: M1 includes currency outside banks and demand deposits; M2 adds time and savings deposits to M1; and M3 encompasses M2 along with quasi-cash deposits. Quasi-cash deposits include residents' foreign currency deposits, secured deposits via letters of credit, ongoing transfers, and repurchase agreements (repos) conducted by banks with the private sector.

From January to November 2024, liquidity levels grew by 8.3%, or over SAR224,699 billion. This compares to the liquidity level of SAR2,720,957 million at January's end. Monthly growth was also observed with a 0.3% increase or over SAR9,567 billion from October's end figure of SAR2,936,089 million.

The robust liquidity levels have been pivotal in driving economic and commercial activities within Saudi Arabia. They have significantly contributed to positive economic growth throughout the year.

Overall liquidity levels have shown consistent growth throughout the year. The increase from October to November alone highlights a steady upward trend in economic activity.

With inputs from SPA