Liquidity in the Saudi economy grows by 9.4% in May

Domestic liquidity in the Saudi economy (Money Supply – M3) recorded significant annual growth by the end of May 2025, reaching approximately SAR 265.4 billion, an increase of 9.4% compared to the same period in 2024. This represents a record high of SAR 3.09 trillion, compared to SAR 2.82 trillion in May of last year.

The monthly statistical bulletin issued by the Saudi Central Bank (SAMA) showed that liquidity also grew on a monthly basis by SAR 39.1 billion, equivalent to 1.3%, compared to its level in April of approximately SAR 3.05 trillion. Analyzing the components of money supply (M3), “demand deposits” topped the list, accounting for 48.6% of the total, with a value of 1.5 trillion riyals. This was followed by “time and savings deposits,” which recorded 1.1 trillion riyals, representing 35.2%.

“Other quasi-cash deposits” amounted to approximately (256) billion riyals, representing 8.3%, while “cash in circulation outside banks” amounted to 246.2 billion riyals, representing 8%.

It should be noted that “quasi-cash deposits” include resident deposits in foreign currencies, deposits allocated to documentary credits, outstanding transfers, and repurchase (repo) operations between banks and the private sector. The narrow concept of money supply (M1) is defined as the sum of cash circulating outside banks plus demand deposits, while (M2) includes both (M1) and time and savings deposits, and (M3) is the broader concept, as it also includes other quasi-monetary deposits.