Saudi Arabia’s US Treasury bond holdings rise to $140.3bn in June

RIYADH: Saudi Arabia’s holdings of US Treasury bonds increased to $140.3 billion in June, reflecting a 26.73 percent year-on-year rise. 

Data from the US Treasury Department showed the Kingdom maintained its position as the 17th largest holder of these securities, which are known for their stability and liquidity.

Saudi Arabia and other nations invest in these bonds for their safety, diversification benefits, and alignment with their economic relationships with the US. 

The Kingdom is the only Arab nation among the top 20 holders of US Treasury securities.  

Saudi Arabia’s June holdings were also up month on month, with the May figure standing at $136.3 billion.

This increase highlights Saudi Arabia’s expanding influence in global financial markets and its strategic use of sovereign wealth to bolster its economic standing. The rise in US Treasury holdings aligns with the Kingdom’s financial strategy to diversify investments beyond oil revenues. 

This growth in Saudi Arabia’s holdings reflects a broader pattern seen across the Gulf Cooperation Council nations, where other member states have also maintained substantial investments in US Treasury securities.  

The UAE held $65.2 billion in US Treasury bonds as of June, demonstrating a slight decrease from the $66.5 billion it held in May. 

Kuwait has maintained a steady presence in the US Treasury market, with its holdings standing at $50.8 billion in June.  

This figure is consistent with previous months, indicating a stable investment strategy that prioritizes steady returns and minimal risk exposure. 

Oman and Qatar, though smaller in scale compared to their GCC counterparts, also contribute to the region’s collective investment in US Treasury bonds.  

Oman’s holdings were recorded at approximately $7.6 billion in June, while Qatar’s holdings reached around $7.4 billion during the same period. 

Bahrain also participated in this trend, though its holdings are more modest. As of June, its investments in US Treasury bonds were valued at $1.2 billion. 

The data collected is primarily from US-based custodians and broker-dealers. Since American securities held in overseas accounts may not be attributed to the actual owners, the department said, the data may not provide a precise accounting of individual country ownership of treasury securities.