The net foreign assets (NFAs) of the central bank fell by $16bn in July to $407bn, down from a high of almost $750bn in 2014. In late 2014, oil prices fell from a trading range around the $100 per barrel mark to average closer to $50 from 2015 until 2021. Although net foreign assets stabilised during 2022, they have fallen $33bn in 2023 despite higher oil prices averaging around $80 and the ministry of finance stated policy to increase SAMA reserves using last year’s budget surplus. July’s drop in NFAs was the biggest fall since April 2020 when the government made large transfers to PIF for investments in US equities, which had fallen to low valuations. PIF has remained active in 2023 as per our update last week.
