The latest data issued by the Saudi Central Bank “SAMA” showed remarkable growth in Saudi banks’ investments in treasury bonds, reaching record levels of 649.1 billion riyals by the end of November 2025. This increase, which recorded a monthly increase of 724 million riyals compared to October of the same year, reflects the growing confidence in government financial instruments and the strength of the banking sector in the Kingdom.
On an annual basis, banks' investment portfolios in these bonds achieved a significant leap, increasing by over SAR 62 billion, representing an 11% growth compared to the same period of the previous year. These figures underscore the pivotal role played by national banks in supporting the Kingdom's fiscal policy, as their investments in government treasury bonds constituted 72% of their total claims on the government and quasi-government sectors.
A supportive economic context and an ambitious vision
This surge in banks' holdings of treasury bonds aligns with the significant economic activity underway in Saudi Arabia under Vision 2030. The government, through the Ministry of Finance and the National Debt Management Center, is working to develop and deepen the domestic debt market, providing banks with secure and stable long-term investment channels. These bonds are a vital tool for managing liquidity in the banking sector and contribute to financing major development projects and infrastructure initiatives across the country.
Liquidity indicators and liabilities of the public sector
In a related context, the data indicated that the total claims of banks on the public sector rose to about 895.6 billion riyals by the end of November 2025, compared to 779.4 billion riyals in the same month of 2024. This increase reflects the strategic partnership between the financial sector and the government sector, and enhances the stability of the Saudi financial system, which enjoys high capital adequacy ratios and strong liquidity.
What are treasury bonds and their importance?
Treasury bonds in Saudi Arabia are defined as long-term government debt instruments issued by the government through the Public Debt Management Office at the Ministry of Finance. According to the methodology of the Saudi Central Bank (SAMA), these figures include government bonds and sukuk, including those issued internationally and purchased by banks in the secondary market, while central bank treasury bills are excluded in accordance with international financial disclosure standards. The high demand for these bonds is a positive indicator of the Kingdom's strong creditworthiness and the attractiveness of its sovereign debt instruments to investors and financial institutions.
