Saudi liquidity hits historic high, surpassing SR3 trillion in February 2025

Dubai:  Liquidity in the Saudi economy surged to record levels by the end of February 2025, reaching an all-time high with an annual increase of SR277.49 billion—equivalent to a growth rate of 10.1 per cent.

According to the Saudi Central Bank, total liquidity (broad money supply, M3) exceeded SR3 trillion (SR3,033,684 million), up from SR2,756,193 million during the same period in 2024.

This robust expansion underscores the strong performance of the broad money supply, a key indicator of economic vitality.

On a monthly basis, liquidity rose by SR67.54 billion, or 2.3 per cent, compared to SR2,966,140 million at the end of January 2025. These elevated liquidity levels are a key driver of Saudi Arabia’s economic momentum, underpinning both commercial activity and overall economic growth.

Breaking down the components of broad money supply, demand deposits held the largest share, accounting for 48.5 percent of total liquidity, or SR1,470,383 million as of February’s end. Time and savings deposits followed, amounting to SR1,031,712 million and comprising 34 per cent of the money supply.

Quasi-cash deposits came in third, contributing SR293,683 million, or 9.7 percent of total liquidity. Currency in circulation outside the banking system ranked fourth, standing at SR237,905 million, or approximately 7.8 per cent of the total. Quasi-cash deposits include residents’ deposits in foreign currencies, deposits backed by letters of credit, ongoing remittance transfers, and repurchase (repo) agreements with the private sector. The broad money supply is categorised as follows: M1 includes currency in circulation and demand deposits; M2 combines M1 with time and savings deposits; and M3 encompasses M2 along with quasi-cash deposits.