Savings and time deposits in Saudi Arabia reached a record SAR949.708 billion by the end of 2024, according to the Saudi Central Bank (SAMA) statistical bulletin for December 2024. This marks an annual growth of 10 percent, with an increase of SAR85.638 billion compared to SAR864.069 billion at the end of 2023. The deposits accounted for 32.5 percent of the total broad money supply, which stood at approximately SAR2.921 trillion.
Context and Background
The consistent rise in savings and time deposits reflects growing confidence in Saudi Arabia’s banking sector and its broader economic stability. These deposits, which stood at around SAR698.436 billion in earlier periods, have steadily increased, driven by higher interest rates, economic diversification efforts under Vision 2030, and increased household savings. The fourth quarter of 2024 saw a 0.3 percent quarter-on-quarter increase, adding SAR2.824 billion to reach SAR949.708 billion from SAR946.866 billion at the end of the third quarter.
Key Details
Monthly data shows that deposits peaked at SAR989.986 billion in November 2024, before a slight moderation in December. The average monthly balance for savings and time deposits in 2024 was approximately SAR908.268 billion. The Saudi Central Bank’s bulletin highlights the sustained growth trajectory, with deposits increasing by over SAR85 billion from January to December 2024. This trend underscores the banking sector’s liquidity and the population’s increasing propensity to save.
Implications and Impact
The surge in savings and time deposits signals a robust financial ecosystem in Saudi Arabia, supporting lending capacity and investment in non-oil sectors. This aligns with global trends of rising savings rates in stable economies, but Saudi Arabia’s growth notably outpaces many regional peers. The high deposit base provides a solid foundation for financing infrastructure projects and small-medium enterprises, key pillars of Vision 2030. International investors view such data as a positive indicator of economic resilience and banking sector health.
Vision 2030 Alignment
The record savings and time deposits directly support the Kingdom’s Vision 2030 goals by strengthening the financial sector, encouraging a culture of savings and investment, and providing capital for economic diversification. SAMA’s prudent monetary policies have fostered an environment where savings grow sustainably, contributing to long-term economic stability and enabling the realization of mega-projects such as NEOM and the Red Sea Project. As Saudi Arabia continues its transformation, a robust deposit base will be crucial for funding future growth.
20 Questions
Q1. What is the total amount of savings and time deposits in Saudi Arabia by end of 2024?
A1. The total reached a record SAR949.708 billion by the end of 2024, according to the Saudi Central Bank (SAMA) statistical bulletin.
Q2. How much did savings and time deposits grow annually in 2024?
A2. They grew by 10 percent annually, an increase of SAR85.638 billion compared to SAR864.069 billion at the end of 2023.
Q3. What percentage of the total broad money supply do these deposits represent?
A3. They accounted for 32.5 percent of the total broad money supply, which amounted to approximately SAR2.921 trillion.
Q4. How did the deposits change quarter-on-quarter in the fourth quarter of 2024?
A4. They grew by 0.3 percent quarter-on-quarter, increasing by SAR2.824 billion from the third quarter’s SAR946.866 billion.
Q5. What was the peak monthly level of savings and time deposits in 2024?
A5. The highest monthly level was SAR989.986 billion, recorded at the end of November 2024.
Q6. What was the average monthly balance for savings and time deposits in 2024?
A6. The average monthly balance stood at approximately SAR908.268 billion throughout 2024.
Q7. Which Saudi agency published the data on savings and time deposits?
A7. The data was published by the Saudi Central Bank (SAMA) in its statistical bulletin for December 2024.
Q8. Why are savings and time deposits important for Saudi Arabia’s economy?
A8. They provide a stable source of liquidity for banks, enabling lending to businesses and individuals, supporting investment and economic growth.
Q9. How does Vision 2030 relate to the growth in savings and time deposits?
A9. Vision 2030 promotes financial stability and a savings culture, which directly contributes to the rise in deposits and funds diversification projects.
Q10. What factors drove the increase in savings and time deposits in 2024?
A10. Higher interest rates, economic diversification, increased household savings, and confidence in the banking sector drove the increase.
Q11. How does this deposit growth compare to earlier years?
A11. Deposits stood at around SAR698.436 billion earlier, showing consistent growth, with a significant acceleration in 2024.
Q12. What is the broad money supply in Saudi Arabia at the end of 2024?
A12. The broad money supply amounted to approximately SAR2.921 trillion as of end of December 2024.
Q13. How does the deposit growth support Saudi Arabia’s non-oil sectors?
A13. Higher deposits increase bank lending capacity, financing non-oil sectors like tourism, tech, and renewable energy under Vision 2030.
Q14. What is the significance of the deposit data for international investors?
A14. It signals economic stability, a healthy banking system, and strong savings culture, boosting investor confidence in Saudi Arabia.
Q15. Did the deposits decline from the November peak in December 2024?
A15. Yes, deposits moderated slightly in December to SAR949.708 billion from November’s peak of SAR989.986 billion.
Q16. How does the Saudi Central Bank ensure the accuracy of this data?
A16. SAMA follows rigorous statistical methodologies and publishes monthly bulletins based on verified data from all licensed banks in Saudi Arabia.
Q17. What role do savings and time deposits play in the banking sector’s liquidity?
A17. They form a stable component of bank liabilities, providing long-term funding for loans and investments, enhancing financial stability.
Q18. How might future interest rate changes affect these deposits?
A18. Higher interest rates typically attract more savings, while lower rates may reduce deposit growth, but SAMA’s policies aim for balanced stability.
Q19. Can this deposit growth be linked to specific Vision 2030 projects?
A19. Yes, increased deposits provide capital for banks to fund mega-projects like NEOM and the Red Sea Project, directly supporting Vision 2030.
Q20. Where can readers find the original statistical bulletin?
A20. The original bulletin is available on the Saudi Central Bank’s official website and was reported by the Saudi Press Agency (SPA).
Reader Feedback
We value your thoughts. Please share your feedback on this article.
Your feedback helps us improve our coverage.