In October 2024, Saudi Arabia’s official reserve assets increased by 22.22% year-over-year to SR1.63 trillion (USD 435.41 billion), demonstrating the Kingdom’s fiscal stability. These holdings include foreign reserves, the reserve position of the International Monetary Fund (IMF), monetary gold, and special drawing rights, according to data from the Saudi Central Bank, or SAMA.
The latter group, which included foreign currency, deposits, and securities investments, made up 94.34% of the total and reached SR1.54 trillion in October 2024, a 2.32% increase over the previous year. With a 2.09% increase, special drawing rights now total SR78.42 billion, or 4.8% of Saudi Arabia’s total reserves.
A basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling, determine the value of SDRs, which were created by the IMF to augment member nations’ official reserves. Governments can trade SDRs for freely usable money when necessary.
Apart from offering additional liquidity, SDRs serve as a unit of account, aid in exchange rate stabilisation, and promote global trade and financial stability. The IMF reserve position decreased by 8.03% during this time, from a total of approximately SR12.41 billion. This category shows how much a nation can take out of the IMF unconditionally.
Gold reserves stayed at SR1.62 billion, which hasn’t changed since February 2008. The Kingdom of Saudi Arabia’s fiscal strength is based on its reserve assets, which are supported by significant foreign exchange reserves and sovereign wealth that is managed by organisations such as the Public Investment Fund.
The government can manage economic uncertainties such as shifting oil revenues, volatility in the world financial markets, and geopolitical threats with the help of these reserves. The Kingdom has substantial reserve levels, which put it in a strong position to meet its financing needs over the short, medium, and long term.
Saudi Arabia’s ability to obtain advantageous borrowing terms from both domestic and foreign markets is strengthened by its financial resilience, which boosts investor confidence and promotes fiscal sustainability.
Meanwhile, the Kingdom has reported a 2.8% increase in real GDP for the third quarter of 2024, with non-oil activities driving the year-on-year growth.
Seasonally adjusted real GDP was up 0.9% in the second quarter, according to Riyadh’s General Authority for Statistics. Non-oil GDP was 4.3% higher year-on-year and 0.7% higher than in Q2 2024.
Oil GDP, which constitutes 22.8% of the Gulf major’s economy, rose by just 0.05% in Q3 2024. Retail and leisure recorded the fastest growth, with a 5.8% rise for the wholesale and retail trade, restaurant and hotel sector. Next came finance, insurance and business services with a 5.7% increase and construction with a 4.6% rise.
The Kingdom’s GDP stood at SAR1,007 billion (USD 268.5 billion) in the third quarter of 2024. Oil activities remain the biggest contributor to GDP, followed by government activities at 16.1% and wholesale and retail trade, restaurant and hotel activities at 10.1%.
Saudi Arabia’s imports were 7.3% higher year-on-year and 3.8% higher than in Q2 2024. Exports have risen by 3% since the third quarter of 2023, but dropped by 5.7% compared with the previous quarter. The S&P Saudi Arabia Purchasing Managers’ Index, a measure of non-oil private sector performance, hit a 16-month high in November.