According to its monthly statistical bulletin, the Saudi Central Bank (SAMA) reported a 3.4 percent increase in its total assets in September. Figures stood at $490 billion, up from $469 billion in August.
However, comparing it to the same month last year, this marked a $44.9 billion decline.
SAMA’s bulletin comprises the performance of banks listed on the Saudi Stock Exchange and some foreign banks operating in Saudi.
Saudi Central Bank’s September performance
Apart from disclosing the total assets of the Saudi Central Bank, the report also revealed that there was an 11.5-year-on-year (YoY) percent decrease in its investments in foreign securities. It reached $266 billion in September this year. On the other hand, SAMA’s deposits with foreign banks rose by 7 percent compared to September 2022, hitting over $100 billion.
The central bank’s assets included $68.4 billion in foreign currencies and gold. Meanwhile, $6.6 billion in cash was stored in the vault as of September 2023.
The report additionally highlighted that banks operating in Saudi Arabia witnessed a 22 percent increase in their aggregate profits before zakat and taxes. It reached $1.9 billion in September, compared to $1.6 billion in the same month of 2022.
Furthermore, the report indicated that the aggregate assets of these banks grew annually by 9.43 percent to $1 trillion in September. Simultaneously, deposits in these banks increased by 8.34 percent to $653 billion compared to September 2022.
Emphasizing the growth of the private sector, the SAMA report revealed that loans extended to privately operated firms in September experienced a YoY increase of 9.33 percent, amounting to $658 trillion.
In August, SAMA Governor Ayman Al-Sayari highlighted that Saudi Arabia is the most prominent Islamic finance market worldwide. It boasts total assets exceeding $826 billion and accounts for 33 percent of Islamic assets worldwide. He also mentioned that Saudi Arabia is the largest sovereign sukuk issuer globally.
Read: Saudi Arabia leads MENA’s top 30 banks — S&P report
Non-oil growth continues
The growth in Saudi Central Bank’s total assets is in parallel to the country’s non-oil expansion.
In the third quarter of 2023, non-oil activities in Saudi Arabia posted a 3.6 percent increase. This underscores the success of the country’s concerted efforts to diversify its sources of revenue, aligning with the key objectives outlined in Saudi Vision 2030.
Conversely, the local GDP exhibited a contraction of 4.5 percent in the same quarter. This is primarily attributed to a 17.3 percent decrease in oil-related activities.
These figures support the latest annual review of the International Monetary Fund (IMF). According to the IMF, Saudi’s growth will be particularly highlighted by an improvement in its non-oil sector.
This upward trend has gained momentum since 2021, achieving an average of 4.8 percent growth in 2022. The non-oil sector is poised to maintain this trajectory, with growth expected to hover around 5 percent throughout 2023.
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