Monetary and financial reports

Monetary and financial reports

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    Thu, 15 December 2016

    Monetary and financial update: (Rebound in monetary aggregates)

    In December 14, 2016, the Saudi Arabian Monetary Authority (SAMA) increased its reverse repo policy rate by 25bps to 0.75 percent, its second such increase since 2008, mirroring the hikes in the US. Meanwhile, SAMA’s key policy repo rate was kept unchanged at 2.0 percent. SAMA’s rate increase and the prospect of further Fed hikes in 2017 will not have a significant impact on the domestic liquidity situation. This is specifically due to SAMA recently passing several measures to enhance liquidity in the domestic financial system.

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    Thu, 10 March 2016

    Monetary and Financial Update: Pace of Slowdown in Monetary Aggregates to Moderate in 2016

    Following a rapid slowdown of monetary aggregates towards the end of 2015, we now expect some moderation in the pace of slowdown in the Kingdom in 2016. The current series of sovereign bond issuances should reassure investors of the government’s commitment to maintain a high level of spending on the economy, which will continue to be the growth driver for credit to both consumers and corporations. We expect annual growth in credit to the private sector to slow in 2016.

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    Wed, 04 September 2013

    Saudi monetary update (July 2013): Flat deposits, but higher credit


    Based on data released recently by SAMA on the Saudi monetary indicators for the month of July, we highlighted a number of key updates in this report. Net credit issued to the private sector maintains positive momentum while growth of consumer lending recorded an all-time high. Loan-to-deposit ratio rises to 82.5 percent as total deposits remain flat.  Money supply growth maintains a double digit growth and foreign assets continue to rise on the back of higher oil revenues.

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    Wed, 31 July 2013

    Monetary update (June 2013): Credit expands, but not deposits

    SAMA released data on monetary indicators for the month of June. All indicators are healthy, though some decline compared with the previous month. Net credit issued to the private sector increased by SR13.9 billion to record an annual growth of 15.9 percent, total deposits slipped by SR3.6 billion, SAMA’s reserve assets slipped by SR2.4 billion, and bank excess deposits contracted to SR56 billion, though they are still higher than a year earlier.

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    Tue, 25 June 2013

    Monetary update (May 2013): Credit growth continues to rise

    SAMA released recently data on monetary indicators for the month of May.  All indicators are healthy in the month, as the net credit to the private sector increased 16,5 percent year-on-year, total bank deposits increased by SR17.7 billion, SAMA’s reserve assets continued to grow and added SR31 billion, and bank excess deposits with SAMA remained elevated at SR79.9 billion reflecting the strong liquidity of the domestic banks.

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    Mon, 27 May 2013

    Monetary update- April 2013

    The current monetary conditions in the Kingdom reflect the strong performance of domestic economic activities. In this report, we take a closer look at the recent monetary developments in the Kingdom.  Net credit issued to the private sector and banks deposits maintained an upward trend. SAMA’s gross foreign assets continued to grow and Bank excess deposits with SAMA remained elevated reflecting the strong liquidity position of the domestic banks.

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    Wed, 04 July 2012

    Mortgage Law

    The endorsement by the Council of Ministers of the mortgage law is a very important step in broadening home ownership. It will help to tackle one of the most pressing social issues for many in the Kingdom and will generate significant benefits to the economy. However, it will take some time before the full benefits of the mortgage law are realized and the initial impact will probably not be substantial.

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    Fri, 01 January 2010

    Lessons from the global crisis

    The global crisis made the high degree of interconnectedness between the Saudi economy and the rest of the world abundantly clear. Perhaps the most important unexpected impact is that the stress point for Saudi Arabia in this recession turned out to be more related to credit than oil.

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    Fri, 01 May 2009

    UAE withdrawal threatens GCC monetary union


    The UAE has withdrawn from the proposed Gulf Cooperation Council (GCC) monetary union, heightening doubts about whether the project will advance. As it was a purely political decision, we do not think there are any implications for the currency pegs of the GCC members to the US dollar.

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    Sun, 01 March 2009

    Revisiting the global crisis

    There has been a spectacular and widespread decline in the global economy over the past few months. As the global environment has shifted from financial crisis to economic recession, the effects on the Saudi economy have altered.

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