The latest data issued by the Saudi Central Bank (SAMA) revealed a remarkable growth in the investment portfolios of Saudi banks, as banks' holdings of treasury bonds rose to record levels of 653.3 billion riyals during 2025. This figure represents a significant increase of 61.4 billion riyals, with a growth rate of 10% compared to the levels recorded at the end of 2024.
Details of growth in government assets
Statistical reports indicate that banks' investments in government treasury bonds have become a cornerstone of the banking sector's asset structure, accounting for approximately 72% of total bank claims on the government and quasi-government sectors during the period in question. In a related development, total bank claims on the public sector rose to approximately SAR 909.9 billion by the end of last year, compared to SAR 795 billion at the end of 2024, reflecting the depth of the financial partnership between the banking and public sectors.
Economic implications and the context of Vision 2030
This growing increase in government bond holdings aligns with the objectives of Vision 2030 and the Financial Sector Development Program, which aim to deepen the local debt market and make it more attractive to investors. The strong demand from Saudi banks for government bonds is a clear indicator of the financial strength of the Saudi economy and the high level of confidence in the government's creditworthiness. These investments also contribute to providing the necessary financing for major development and infrastructure projects underway in the Kingdom, while offering banks a safe investment tool for efficient liquidity management and risk mitigation.
Enhancing financial and banking stability
From a banking perspective, expanding the purchase of treasury bonds is an effective asset and liability management strategy, as these bonds provide stable and guaranteed returns, thus enhancing bank profitability and financial stability. Furthermore, the growth of the government debt market reflects the maturity of the Kingdom's financial market and its capacity to absorb large issuances, further solidifying Saudi Arabia's position as a leading regional financial center.
International methodologies and definitions
According to clarifications from the Saudi Central Bank, the classification of "treasury bonds" includes internationally issued government bonds and sukuk purchased by banks from the secondary market. Central bank bills, however, are excluded from this classification in accordance with internationally recognized methodologies and standards for monetary statistics. In Saudi Arabia, treasury bonds are defined as long-term government debt instruments issued by the Kingdom's government (through the Ministry of Finance and the National Debt Management Center) and are considered key tools in fiscal and monetary policy.
