Saudi Arabia’s foreign reserves plunge by $16 bln in July

Saudi Arabia’s foreign reserves dropped by more than $16 billion in July, the biggest drop since the onset of the pandemic in 2020, according to the Saudi Central Bank (SAMA) data published on Monday.

The net foreign assets fell to 1.53 trillion riyals ($407 billion) after increases reported in May and June. This is the sharpest decline reported since 2009, according to Bloomberg, following Saudi Arabia slashing oil production in a bid to bolster prices.

“The net foreign asset position should improve in September, especially when the first performance-linked dividend distribution,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC.