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Saudi Arabia’s investments in US bonds will decline in 2020

Saudi investments

Saudi investments in US Treasury bills and bonds decreased at the end of 2020, after a four-month rise.

The US Treasury Department said Saudi Arabia’s investments in US bonds amounted to $136.4 billion by the end of 2020.

Saudi Arabia’s investments in November of last year were $137.6 billion recording  a decrease of 0.9%, ($1.2 billion).

Saudi investments

Despite the decline in Saudi investments, it maintained the 14th among the world’s major investors in the American debt instrument.

Saudi Arabia’s investments in US Treasury bonds were distributed to $105.6 billion in long-term bonds, 78% of the total, while about $29.4 billion in short-term bonds that account for 22% of the total.

On an annual basis, Saudi Arabia’s balance of US Treasury bonds and bills decreased by 24.1% ($43.4 billion) at the end of December 2020, compared to its balance at the end of the same month of 2019 of $179.8 billion.

Saudi Arabia possesses 59.4% of the gulf holdings of the US debt instrument amounting to $229.8 billion. Then comes Kuwait with $46.6 billion, UAE with $32.2 billion, Qatar with $8 billion, the Sultanate of Oman with $5.7 billion, and finally Bahrain with $916 million.

Saudi Arabia invests only in Treasury bonds and bills. The country does not invest in securities, assets and cash in dollars in the United States.

Saudi Arabia’s balance of US Treasury bonds and bills increased during 2019 by about 4.8%, equivalent to $8.2 billion, compared to its balance at the end of 2018 of $171.6 billion.

During 2018, Saudi Arabia raised its balance of US Treasury bonds by 16.4%, equivalent to $24.2 billion, compared to its balance at the end of 2017 of $147.4 billion.

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