The lowest foreign investments for Saudi banks since July 2009.. 92.39 billion riyals at the end of May

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The value of foreign investments of banks operating in Saudi Arabia at the end of last May amounted to about 92.39 billion riyals, recording a decline of 8.3 percent, equivalent to 8.4 billion riyals, compared to about 100.8 billion riyals at the end of the same month of 2020. According to the monitoring of the Economic Reports Unit in the newspaper Al-Eqtisadiah, based on the data of the Saudi Central Bank “SAMA”, that the investments of foreign banks at the end of May recorded their lowest level since July 2009.
This comes in light of the expansion of banks in local lending operations, whether for companies or individuals on the one hand, as well as the expansion of buying government bonds on the other hand.
Banks’ investments in government bonds during the same period rose by about 7.1 percent to reach 450.1 billion riyals, while credit to the private sector for the period grew by about 16 percent.
The foreign investments of the banks recorded a decline of 4.9 percent on a monthly basis, declining by 4.81 billion riyals, as foreign investments at the end of last April amounted to about 97.2 billion riyals.
Foreign bank investments are one of the foreign assets of banks operating in Saudi Arabia. Foreign assets are divided into four items, which are “foreign investments, amounts due from foreign banks, amounts due from branches abroad, and other assets.”
The largest of the previous items in terms of the percentage was “foreign investments”, as their value represented about 37.9 percent of the total foreign assets of banks operating in Saudi Arabia, amounting to about 243.56 billion riyals at the end of last May, while it constituted about 36 percent during the same period. from last year. As for the “amounts owed by foreign banks” came second with a value of 59.32 billion riyals, which represents about 24.4 percent of the banks’ total foreign assets, while the amounts owed by branches abroad constituted about 22.2 percent, or the equivalent of 54.1 billion riyals.
By the end of last year 2020, bank investments abroad recorded their first growth after declining for four consecutive years, as they grew by 9.4 percent, while they fell by 1.2 percent during 2019, and about 13.7 percent in 2018, while they decreased during 2017 and 2016 by about 11.4 and 26.2 percent, respectively.
Economic Reporting Unit





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