9 Hrs
Source:
الاقتصادية
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Saudi Funds Shift Toward Cash and Debt
Public investment funds in Saudi Arabia have experienced a significant expansion in the gap between their investments in cash, debt instruments, and equities, reaching 71.7 billion Riyals by the end of June 2026—an increase of six times compared to the end of 2024. Data shows that transactions in money markets and debt instruments account for approximately 96% of the asset growth, indicating a clear trend toward short-term investments. Cash holdings increased from 55.5 billion Riyals to 111.6 billion, while equity investments declined from 58 billion to 56.6 billion Riyars. This shift is attributed to high benchmark returns and elevated interest rates, with the average SIBOR rate at 5.6% at the end of 2024 compared to 4.7% in June 2026, making short-term liquidity more attractive. However, equity returns may improve in the future and reduce the gap if investment preferences change.
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