Riyadh: The Saudi Arabian Monetary Agency (Sama), the kingdom's central bank, said yesterday that gold and foreign currency reserves increased by 131.5 billion riyals (Dh129.04 billion), or 6.8 per cent, in July compared to the same month last year.

According to Sama's monthly statements, the kingdom's reserves of foreign currency and gold were valued at 1.62 trillion riyals at the end of July, an increase of 12 billion riyals over June.

Compared to last year's 1.49 trillion riyals, Sama's assets rose by more than 127 billion riyals, or 9 per cent. Part of these assets — 1.14 trillion riyals — are invested in securities outside the kingdom, while 298 billion riyals are deposited in foreign banks.

The foreign currency reserves are an indicator of the ability of a country to settle its foreign debt, bolster its currency and control the exchange rate. It is also used to determine the credit rating and financial strength of a nation.

This indicator also comprises foreign currency deposits and bonds kept at the central banks and financial authorities.

Foreign investment

At the end of last year, the world's foreign currency reserves jumped to $8 trillion, with Saudi Arabia alone accounting for 400 billion riyals ($106.85 billion).

According to the United Nations Conference on Trade and Development (Unctad), the flow of foreign direct investment to Saudi Arabia reached 133 billion riyals in 2009, raising total FDI in the kingdom to 552 billion riyals.

A report by the Saudi Press Agency (SPA) on the occasion of Saudi National Day on Thursday revealed that the kingdom disbursed 120.6 billion riyals in loans and assistance to developing countries between 1991 and 2008.

In an annual classification of the investment environment issued by the International Finance Corporation of the World Bank, Saudi Arabia rose from the rank of 67th among 135 countries in 2005 to eighth out of 183 countries in 2010.

The kingdom is part of the G20 and attended three summits in 2008, 2009 and 2010.

Sama said Saudi commodity exports rose to 1.2 trillion riyals in 2008 while imports stood at 431.8 billion riyals. Crude oil production in 2008 reached about 3.36 billion barrels in 2008 with a daily output of 9.2 million. That year, it exported 2.67 billion barrels of crude and 386.3 million barrels of refined oil.