03/04/2026 08:07 AST
Saudi bank deposits exceeded SR3 trillion ($800 billion) for the first time at the end of February, driven primarily by growth in government deposits, alongside continued increases in deposits from individuals and companies.
Deposits recorded an annual increase of about 8.8 percent in February, the slowest pace in two months, while rising 2.3 percent month on month compared to January.
The government's growth in this area grew by around SR127.6 billion, or 14.8 percent, while deposits from individuals and companies increased by approximately SR114.3 billion, up 6.1 percent, according to data from the Saudi Central Bank.
Government deposits account for about 32.5 percent of total holdings compared with 65.6 percent for deposits from individuals and companies, reflecting the continued key role of the private sector in supporting banking liquidity.
Time and savings deposits account for 39% of total
Higher interest rates have reshaped deposit structures in Saudi banks, with account holders shifting toward higher-yield options.
Over the past three years, time and savings deposits have increased by about 1.5 times since the start of the interest rate hiking cycle, compared with modest growth of about 9.3 percent in demand deposits, which do not offer returns to customers.
As a result, the share of time and savings deposits rose to 39.4 percent of total deposits by the end of February, compared with about 23 percent before the tightening cycle began in early 2022.
Higher returns have also intensified competition among banks, prompting them to introduce new low-risk savings products aimed at attracting liquidity and supporting their ability to meet rising financing demand, while mitigating risk by linking these products to fixed-term contracts.
5 years to reach the third trillion
Data points to a clear acceleration in the growth of liquidity and financial depth in the Kingdom. It took around 19 years to reach the first SR1 trillion in deposits from 1992 to 2011, followed by 10 years to reach the second trillion by 2021, and only about five years to achieve the third trillion in February 2026.
This acceleration reflects key economic shifts, including higher oil revenues during upcycles, increased government spending, and the expansion of mega projects. Programs under Saudi Vision 2030 have also boosted economic activity and diversified income sources, supporting deposit growth.
In addition, the expansion of the private sector, along with improvements in employment and income levels, has increased savings among individuals and businesses.
Arab News
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