Saudi asset growth sharply slow down in 2014

Saudi Arabia’s foreign assets recorded a sharply growth slowdown in 2014 as a result of higher state spending and a steep decline in oil prices, according to official data.

The assets controlled by the Saudi Arabian Monetary Agency (Sama), the Gulf country’s central bank, grew by about 3.3 per cent to nearly SR2.83 trillion (Dh2.80 trillion) at the end of October 2014 from SR2.73trn at the end of 2013, Sama said in its October bulletin.

The growth this year was a fraction of the rate recorded in the previous three years, when oil prices were at their highest levels and Saudi Arabia’s crude output largely exceeded nine million barrels per day, one of its highest levels.

At the end of 2013, Sama’s assets surged by nearly SR258 billion (Dh255 billion) or about 10.2 per cent while they recorded growth of more than 20 per cent annually over the previous two years, according to Sama’s data.

From SR2,485bn at the end of 2012, the assets swelled to about SR2,738.7bn at the end of 2013, the figures showed.

The rise meant that the assets have surged by more than SR1,000bn since the end of 2010, when they stood at SR1,705bn.

The assets recorded their largest annual increase of around SR428bn in 2012, when Saudi Arabia is believed to have netted its highest ever oil income.

Saudi Arabia recorded a fiscal surplus of around SR206bn in 2013 after oil and other revenues rocketed by around 36 per cent to SR1,131bn above budgeted revenue of SR829 billion. Actual spending also grew by about 12.6 per cent to SR925 billion compared with forecast expenditure of SR821bn.

In contrast with the previous years, the sharp fall in oil prices over the past few months caused persistent fluctuations in Sama’s assets through 2014.

A monthly breakdown showed the assets dropped to SR2,777 at the end of February from SR2,781 at the end of January before slightly rebounding to SR2,782bn at the end of March. They grew to SR2,789 bn at the end of April and to SR2,803bn at the end of May but slipped again to SR2,795bn at the end of June. The assets recovered to SR2,801bn at the end of July and jumped to SR2,840 billion at the end of August before retreating to SR2,823bn at the end of September. At the end of October, they gained about SR8bn to reach SR2,831bn.


 

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