Saudi Arabia's net foreign reserves declined to $407.1 billion by the end of July 2023, nearly 4% lower than the previous month and the lowest level so far this year, according to official data released on Tuesday.
Last month's fall of $16.4 billion compared to June 2023, when net foreign assets were $423.5 billion, based on the latest monthly report from the Saudi Arabian Monetary Authority (SAMA).
On a year-on-year basis, net foreign reserves dropped 8.7%, or $39 billion. Saudi had $446.1 billion by the end of July 2022. The latest monthly figure was also the lowest since late 2009, per Bloomberg's analysis.
Saudi's net foreign assets rose in May and June, following a downturn in April. In April, Fitch upgraded Saudi's credit rating from A to A+ with a stable outlook, citing strong fiscal and external balance sheets.
Saudi Finance Minister Mohammed al-Jadaan said in May the kingdom is committed to maintaining fiscal sustainability by setting a minimum reserve threshold as a percentage of GDP through its Fiscal Sustainability Program.
The latest data comes as Saudi GDP grew just 1.1% in Q2 year-on-year, largely due to a 5.5% rise in non-oil activities offsetting a 4.2% drop in oil activities, which remain the main revenue driver.
