Riyadh, Saudi Arabia — Liquidity in the Saudi economy, as measured by the broad money supply (M3), reached a record SAR 3.09 trillion at the end of May 2025, according to the Saudi Central Bank (SAMA). This reflects a 9.4% year-on-year rise—equivalent to SAR 265.4 billion—from SAR 2.82 trillion in May 2024.
Compared to April 2025, M3 rose by SAR 39.1 billion or 1.3%. This month-on-month gain signals steady growth in domestic liquidity, mainly driven by increased deposits across Saudi banks.
Deposits Drive Liquidity Growth
Demand deposits remained the largest component, totaling SAR 1.5 trillion, or 48.6% of M3. Time and savings deposits followed at SAR 1.1 trillion, accounting for 35.2%. Quasi-monetary deposits—which include foreign currency holdings, letters of credit, transfers in transit, and repo agreements—stood at SAR 256 billion (8.3%). Currency circulating outside the banking system added SAR 246.2 billion (8%).
M3, the broadest measure of the money supply, encompasses all these elements. M1 captures demand deposits and currency in circulation, while M2 adds time and savings deposits to M1. The continued rise in M3 suggests strong liquidity conditions that support lending, investment, and overall financial system stability.
As these monetary aggregates expand, they offer key insights into the health of Saudi finance. They help track bank strength, capital availability, and potential inflation trends. SAMA’s monthly bulletin remains a vital tool for assessing these dynamics.
THE SAUDI STANDARD’S VIEW: Record Saudi Liquidity Signals Banking Strength and Economic Momentum
SAMA’s report showing SAR 3.09 trillion in M3 liquidity for May 2025 underscores the growing strength and structural depth of Saudi Arabia’s financial system. This record high confirms both investor trust and the solid performance of domestic banks.
The 9.4% annual increase in M3—driven by rising demand and savings deposits—indicates growing confidence among Saudi households and businesses. It also signals alignment with Vision 2030’s push for a savings-driven, diversified economy.
Demand deposits, making up nearly half of total liquidity, ensure flexibility for business transactions and consumer spending. At the same time, the growth in time deposits and quasi-monetary instruments suggests a maturing financial culture.
Month-on-month gains of SAR 39.1 billion reinforce the momentum in financial flows. Moreover, they show how banks are ready to support credit expansion, investment, and capital market development.
The shift toward diversified deposit behavior reflects structural progress in wealth management and long-term financial planning. This development strengthens the foundation for economic resilience.
Ultimately, this milestone in Saudi liquidity illustrates the success of prudent monetary policy and robust banking infrastructure. It confirms Saudi Arabia’s readiness to direct capital into high-impact sectors, driving inclusive and sustainable growth in the years ahead.
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