Saudi assets rose at the end of the second quarter of this year to about 3.99 trillion riyals, the highest level since the fourth quarter of 2014, continuing its growth for the eighth consecutive quarter.

According to an analysis of the reports unit in Al-Eqtisadiah newspaper, based on SAMA estimates, Saudi invested assets grew 2.3 percent to 90.07 billion riyals, compared with 3.90 trillion riyals at the end of the same quarter last year.

The rise in Saudi assets at the end of the second quarter of 2019 was due to the growth of one of its sub-items, "other accounts receivable", in addition to the growth of one of its main items, "direct investment abroad.

Saudi assets are divided into four main divisions, namely offshore reserve assets and portfolio investments which are divided into equity, mutual fund shares, and debt securities.

The third is Other Investments, which is divided into four items: Trade Credit, Loans, Currency and Deposits, and Other Accounts Receivable and Direct Investments Abroad.

Reserve assets

The reserve assets constitute the largest part of the total Saudi assets by about 48.2 percent, to reach at the end of the second quarter of 2019 about 1923.26 billion riyals, registering a growth of 1.2 percent equivalent to 23.44 billion riyals, compared to 1899.82 billion riyals at the end of the corresponding period in 2018.

Other investments

Other investments grew 11.1 percent to 855.56 billion riyals at the end of the second quarter of this year compared to 769.81 billion riyals at the end of the same period last year, accounting for 21.4 percent of total Saudi assets.

The growth of "other investments" was due to the growth of two of its four items, most of which were "other accounts receivable", which increased by 113.5 percent, equivalent to about 86.05 billion riyals to 161.82 billion riyals, compared to 75.78 billion riyals at the end of the second quarter of 2018.

While its second item "Loans" increased by 80.8 percent, equivalent to 29.19 billion riyals to reach 65.29 billion riyals, compared to 36.10 billion riyals at the end of the second quarter of 2018.

The two sub-items, which fell, are "currency and deposits", "trade-credit", where the first item fell 3.5 percent, equivalent to 20.68 billion riyals, to about 578.53 billion riyals, compared to 599.21 billion riyals at the end of the same period last year.

The second item, Commercial Credit, fell by 15 percent, equivalent to QR 8.80 billion to QR 49.92 billion, compared to QR 58.72 billion at the end of the second quarter of 2018.

Portfolio investments

The third major component of Saudi assets, Portfolio Investments, recorded a decline of 9.2 percent, or 80.87 billion riyals, to reach about 798.06 billion riyals, compared with 878.93 billion riyals at the end of the second quarter of 2018.

The value of Portfolio Investments at the end of the second quarter of 2019 accounted for about 20.0 percent of total Saudi assets.

Portfolio investments are divided into two parts, the first is "Equity and Equity Funds", which registered a decline of 2.1 percent, equivalent to 12.60 billion riyals to 588.65 billion riyals, compared to 601.25 billion riyals at the end of the same period in 2018.

The second item, "debt securities," amounted to 209.41 billion riyals, a decline of 24.6 percent, equivalent to 68.27 billion riyals, compared to about 277.68 billion riyals at the end of the corresponding quarter of 2018.

Direct investment abroad

The value of "direct investment abroad" increased by 17.6 percent, equivalent to about 61.75 billion riyals to about 412.31 billion riyals, compared to 350.56 billion riyals at the end of the same period in 2018.

Source: Asharqia Chamber

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