The liquidity levels, or available cash, in the Saudi economy have shown positive growth, reaching their highest historical levels by the end of February 2025. There was an annual increase of 277.49 billion riyals, representing a growth rate of 10.1%, bringing the total liquidity to 3.03 trillion riyals compared to 2.76 trillion riyals in the same period in 2024. This performance reflects a good growth in the broad and comprehensive money supply concept known as “M3,” as indicated by data from the monthly statistical bulletin of the Saudi Arabian Monetary Authority (SAMA).
Monthly liquidity levels saw an increase of 67.54 billion riyals, or 2.3%, compared to the end of January of the current year when it stood at 2.97 trillion riyals.
These liquidity levels act as a driving force and support for the economic and commercial system, contributing to achieving positive rates in the economic development process.
Analyzing the four components of money supply “M3” in its broad and comprehensive sense, “demand deposits” made the largest contribution to the total at 48.5%, with a value of 1.47 trillion riyals at the end of February. Meanwhile, “time and savings deposits” recorded 1.03 trillion riyals, making it the second largest contributor to the total money supply at 34%.
“Other quasi-monetary deposits” reached a level of 293.68 billion riyals with a contribution of 9.7% to the total money supply, making it the third largest contributor. Coming in fourth was “currency outside banks” with a value of 237.91 billion riyals, contributing around 7.8% to the total money supply.
It is worth noting that quasi-monetary deposits consist of residents’ deposits in foreign currencies, deposits against documentary credits, standing transfers, and repurchase agreements (“repos”) executed by banks with the private sector. Local liquidity “M1,” which includes currency in circulation outside banks in addition to demand deposits only, and “M2” includes “M1” plus time and savings deposits. The broad definition “M3” includes “M2” plus other quasi-monetary deposits.
