The financial robustness of the Saudi economy has reached new heights, with liquidity peaking at an impressive SR2,823,745 million at the end of March 2024. This milestone represents a substantial annual growth rate of 8.3 percent, translating to an increase of over SR215 billion compared to the same period in the previous year, where figures stood at SR2,608,319 million. These insights were gleaned from the Saudi Central Bank’s statistical bulletin for March 2024.
The Kingdom’s liquidity experienced a monthly increase of 2.5 percent or around SR67553 million, further bolstering the economic and commercial sectors. This financial momentum aligns with the objectives of Saudi Vision 2030 and showcases the strength and resilience of the Saudi banking and financial sector.
Central to this liquidity swell is the surge in total money supply (M3) and demand deposits. The latter accounts for nearly half of the total money supply at 49.8 percent, reaching SR1,407,114 million. This represents an annual uptick of more than SR52,722 million, or 3.9 percent, compared to the previous year’s SR1,354,392 million. The month-on-month growth stands at 4.4 percent, with a surge of over SR59,864 million.
Time and savings deposits, the second most significant contributors to the money supply, rose by 29.9 percent to SR843,248 billion, marking an annual increase of over SR144 billion. This 20.7 percent growth from SR698436 million in March 2023 illustrates a steady rise in personal savings. On a monthly scale, growth edged up by 0.6 percent, or more than SR4 billion.
Cash outside the banking system also saw an upward trajectory, contributing 8.1 percent to the total money supply, with a value of SR227,491 million. This reflects an annual growth of 9.6 percent, or more than SR19,938 million, from the previous year’s SR207,553 million. The month-on-month growth mirrored this trend at 4.4 percent, or an increase of more than SR9,514 million.
Lastly, other quasi-cash deposits, including foreign currency resident deposits and various bank transactions, contributed approximately 12.2 percent to the total money supply, amounting to SR345,892 million. These deposits comprise a vital component of the Kingdom’s growing liquidity and financial health.