Liquidity levels in Saudi Arabia’s economy recorded an annual growth of 9 percent last year to SAR2.921 trillion ($778.6 billion). This growth was mainly reflected in the broad money supply measure (M3), according to the December edition of the Saudi Central Bank (SAMA) monthly statistical bulletin.
Liquidity levels grew from the beginning of 2024 until the end of December by SAR236.129 billion from SAR2.685 trillion in 2023. Over the past five years, liquidity levels in Saudi Arabia have shown positive growth, rising by 36 percent, with an increase of approximately SAR772.205 billion. These significant liquidity levels are a key driver of the economic and commercial system, contributing to positive growth in the Kingdom’s economic development trajectory.
Demand deposits drive liquidity growth
Reviewing the four components of the broad money supply (M3), demand deposits, which constitute the largest share, accounted for 49.3 percent of the total at SAR1.440 trillion. Meanwhile, time and savings deposits, the second-largest contributor to the total money supply, amounted to SAR949.708 billion, representing 32.5 percent of the total in 2024.
Other quasi-monetary deposits reached SAR302.036 billion, accounting for 10.3 percent of the total money supply, making them the third-largest contributor. Additionally, currency in circulation outside banks ranked fourth, amounting to SAR229.088 billion, with a 7.8 percent contribution to the total money supply.
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Saudi Arabia’s economy grows 1.3 percent in 2024
Growth in liquidity coincided with overall growth in Saudi Arabia’s economy last year. The latest report from the General Authority for Statistics (GASTAT) revealed a 1.3 percent growth in real GDP compared to the previous year, with non-oil and government activities increasing by 4.3 percent and 2.6 percent, respectively, while oil activities declined by 4.5 percent.
Saudi Arabia’s real GDP grew by 4.5 percent in the fourth quarter of 2024 compared to the same quarter of the previous year. This growth was attributed to positive performance across all economic sectors. Non-oil activities increased by 4.7 percent, oil activities grew by 3.4 percent, and government activities rose by 2.2 percent year-on-year.
The GASTAT report also noted that seasonally adjusted real GDP in the fourth quarter of 2024 grew by 0.5 percent compared to the third quarter of 2024.
