The latest data released by the US Treasury Department reveals a notable shift in the sovereign investment strategy of the Kingdom of Saudi Arabia, as the Kingdom significantly increased its holdings of US Treasury bonds during November 2025. According to official figures, the Kingdom's portfolio of these bonds rose to $148.8 billion, registering a substantial monthly increase of $14.4 billion compared to the levels of October of the same year.
A jump in the world rankings and a victory over South Korea
This strategic increase was not merely a numerical change; it directly impacted the global ranking of countries holding US debt. Saudi Arabia surpassed South Korea, securing the 17th position among the largest holders of US Treasury securities. With this achievement, the Kingdom maintains its status as the only Arab nation among the top 20 holders of US debt, reflecting the strength of its financial position and the robustness of its foreign reserves.
Economic context: The strategy of pegging the riyal to the dollar
This move comes within the framework of the Kingdom's long-standing monetary policy of pegging the Saudi riyal to the US dollar. Holding US Treasury bonds is an integral part of the financial instruments used by Saudi monetary institutions to maintain exchange rate stability and provide a safe and highly liquid reserve. These bonds are considered risk-free assets in global markets, making them a safe haven for sovereign reserves, particularly amidst global economic volatility.
Global landscape: Divergent trends among economic powers
Internationally, data from the US Treasury Department showed that total foreign holdings of US Treasury securities reached a record high of $9.36 trillion in November 2025. Looking at the global landscape, Japan maintained its position as the largest holder of US debt, slightly increasing its holdings to $1.202 trillion. Meanwhile, China continued to reduce its exposure to US debt, with its holdings decreasing by $6.1 billion to settle at $682.6 billion. The UK, Canada, and Norway followed Saudi Arabia's lead in increasing their investments in these assets, with the UK adding approximately $11 billion to its portfolio.
The importance and impact of the event
This expansion in purchases of US Treasury bonds reflects the confidence of Saudi financial policymakers in the American economy despite the challenges, and underscores the depth of the historical economic ties between Riyadh and Washington. This growth in foreign assets also indicates the Kingdom's substantial financial surpluses, which are being reinvested in financial instruments that guarantee stable returns and high liquidity, thus supporting the financial stability necessary to fund the Kingdom's ambitious Vision 2030 projects.
