Saudi funds abroad cross SR385 billion
Financial assets belonging to independent Saudi organizations, including the Saudi Arabian Monetary Agency (SAMA) and Public Investment Fund (PIF), in foreign countries amounted to SR385.3 billion, comprising 63 percent of their total assets.
“These organizations have invested SR335.1 billion, or 55 percent of their total assets in foreign stock markets and bonds,” said an analytical report, adding that they deposited SR50.2 billion, or eight percent of their funds, in foreign banks.
The report indicated that the total assets of these organizations rose to SR608.3 billion by the end of June 2014, showing an increase of one percent, or SR4 billion, compared to May 2014, when the amount was SR604.2 billion.
Economist Ehsan Buhulaiga told Arab News that a number of independent Saudi organizations, including SAMA and PIF, invest their money in foreign countries, especially in stocks and bonds to make good profits.
“They publish their annual reports. There is nothing surprising,” he said.
The amount declined by SR6 billion compared to the assets of SR614.3 billion in June 2013 and reduced by SR21.4 billion compared to their assets of SR629.8 billion at the end of 2013.
The report indicated that most of these organizations prefer to deposit their funds in foreign banks. They deposited SR50.2 billion, or 99.6 percent, in foreign banks, with local banks receiving only SR211 million. It is believed that they preferred foreign banks because of high interest rates compared with local banks. These organizations had no deposits in local banks in 2010, 2011 and 2012, the report said.