EconomySaudi Arabia

Saudi Arabia’s Foreign Reserves Cover Imports for Four Years

An economic report said the current indicators have stressed the cohesion of the Kingdom’s national economy, amid the unprecedented challenges afflicting the global economy as a result of the outbreak of COVID-19.

The report revealed that the Kingdom’s financial reserves were sufficient to cover Saudi imports for 4 years (47 months).

According to Jadwa Investment (licensed by the Capital Market Authority), the size of the current foreign reserves with the Saudi Central Bank can cover about 47 months (4 years) of the Kingdom’s imports, or $10.5 billion of goods and products every month.

The indicators come amid extensive Saudi government efforts to stimulate the economy and overcome the negative effects of the coronavirus.

The Kingdom has launched a number of incentives and direct financial support packages worth 120 billion riyals ($32 billion) to strengthen economic activities through the private sector.

The Saudi government has also subsidized the salaries of private sector employees and granted concessional financing to MSMEs to support business continuity.

The Jadwa Investment report stated that the latest government official data reveals that the comprehensive money supply (an indicator of the availability of deposits and cash in circulation) has increased significantly in February by 7.5 percent on an annual basis, and by one percent on a monthly basis.

The growth in the overall money supply came mainly – according to the report – as a result of a continuous rise in demand deposits, which increased by 9.5 percent from February 2019, in addition to an increase in term deposits by 6.6 percent on an annual basis until February.