Prime Highlights:
Saudi public funds raise domestic money market investments by 82.4% year-on-year.
The total assets held by these funds increase to SR160.1 billion ($42.6 billion).
Key Background:
Saudi Arabia’s public funds boosted their domestic money market holdings to SR41.38 billion ($11.03 billion) in the third quarter of 2024, marking an impressive 82.4% year-on-year growth, as reported by the Saudi Central Bank (SAMA). The total value of assets held by these funds surged to SR160.1 billion, representing a 36.7% increase compared to the same period the previous year.
The number of operating funds grew by 9.54%, reaching 310, while the number of subscribers rose by 50.65%, totaling 1.57 million. Notably, domestic holdings experienced the highest growth, with a 41.8% increase, now accounting for 84% of the total portfolio, or SR134.43 billion. Among these assets, 25.83% were allocated to shares, totaling SR41.24 billion, and 7.24% in sukuk and bonds, amounting to SR11.58 billion. Real estate investments, valued at SR27.6 billion, represented 17.24% of the portfolio.
On the international front, foreign investments increased by 16% year-on-year, reaching SR25.66 billion. These investments were spread across foreign shares, bonds, and money market instruments. This trend reflects Saudi Arabia’s growing economic expansion under Vision 2030, with the banking sector experiencing a notable increase in loan growth driven by infrastructure projects, real estate developments, and rising consumer spending. Consequently, Saudi investment funds are increasing their investments in low-risk money market instruments such as short-term government securities, ensuring liquidity while limiting market risk exposure.
SAMA’s data also shows that 92% of active funds are open-ended, with assets totaling SR128.71 billion, while the remaining 8% are closed-ended, holding SR31.38 billion. Notably, the Saudi Public Investment Fund, which focuses on long-term strategic investments aligned with Vision 2030, is excluded from this report.
