Saudi net reserves surge near $449bn, highest since 2020

Saudi Arabia’s net foreign assets rose to SAR1.69tn ($448.8bn) in September, the most in nearly two years, as high crude prices boosted the coffers of the world’s largest oil exporter.

The stockpile grew by SAR36.8bn from the previous month in the biggest increase since June, according to the central bank’s monthly report published on Sunday.

Saudi Arabia has committed to rebuilding holdings depleted during years of subdued crude prices as it takes a different approach to spending its oil windfall. The kingdom has also changed the way it manages its petrodollar wealth by putting a floor and a ceiling on its reserves measured as a share of economic output, according to the Finance Ministry.

High oil prices and production volumes mean Saudi Arabia’s economy is the fastest growing in the Group of 20 and also on track to run a budget surplus for the first time in nearly a decade this year.

The kingdom will look to use the budget surplus to replenish reserves, make additional transfers to sovereign wealth funds, and potentially boost spending on projects intended to help diversify the economy away from a reliance on crude sales, Finance Minister Mohammed Al-Jadaan said last month.