RIYADH: Saudi Arabia’s holdings of US Treasuries rose 6.22 percent from a year earlier to $134.8 billion in January, even as they declined from the previous month, US Treasury data showed.
The Kingdom’s holdings fell by $14.7 billion from December, when they stood at $149.5 billion, marking a pullback after a steady build-up in recent months. Holdings were $148.8 billion in November and $134.3 billion in October.
Countries including Saudi Arabia invest in US Treasuries for their perceived safety, liquidity, diversification benefits, and alignment with economic ties to the US.
Saudi Arabia ranked 18th among the largest foreign holders of US government debt, slipping one position from the previous month after being overtaken by South Korea, whose holdings rose to more than $141 billion.
The bulk of the Kingdom’s portfolio remained concentrated in long-term securities, which stood at $106.2 billion and accounted for 78.8 percent of the total. Short-term holdings amounted to $28.6 billion, or 21.2 percent.
The allocation toward longer-dated Treasuries underscores the Kingdom’s strategy to preserve capital, maintain liquidity and diversify foreign reserves, as global markets navigate interest rate uncertainty and shifting monetary conditions.
Globally, Japan remained the largest foreign holder of US Treasury securities at $1.22 trillion, followed by the UK at $895.3 billion, mainland China at $694.4 billion, and Belgium at $451 billion.
Luxembourg ranked fifth with holdings valued at $446.9 billion, followed by the Cayman Islands and Canada in sixth and seventh positions, with portfolios valued at $432.7 billion and $395.8 billion, respectively.
France placed eighth with $380.5 billion, followed by Ireland at $342 billion and Taiwan at $307.8 billion.
Other countries in the top 20 include Switzerland, Singapore, Hong Kong, Norway, India, and Brazil, along with South Korea, Israel, and the UAE.
The UAE ranked 20th with holdings amounting to $112.4 billion and was the only other Gulf Cooperation Council country on the list alongside Saudi Arabia.
The trade relationship between Saudi Arabia and the US remains strong, with the Kingdom exporting SR1.13 billion ($301 million) worth of non-oil goods in December, according to data from the General Authority for Statistics.
Source: www.arabnews.com