Cash flow (N3) rose, at the end of 2004, to reach a record level of SR 482.4 billion, 17.1% higher compared to its level of SR 411.7 billion at the end of the preceding year 2003.
Recently issued figures relating to cash flow announced by the Saudi Arabian Monetary Agency (SAMA), also indicate that cash flow (N2) reached the figure of SR 400.1 billion, compared to SR 336.4 billion in the previous year, an increase of 19%.
The increased cash flow has been attributed to two main factors. The first of these is more cash being infused into the economy due to the higher oil prices, as well as increased credit facilities provided by the banks to support economic activities in both the public and private sectors. The second reason is said to be the attractive investment opportunities prevailing in the Kingdom, particularly in the stock market and the real estate sector, which has prompted the citizens to utilize their savings locally, more than ever before.
The volume of cash outside banks rose to SR 60.1 billion, by the end of 2004, compared to SR 55.4 billion, at the end of the preceding year 2003, an increase of 8.4%. On demand deposits came to SR 203.3 billion against SR 167.5 billion in the preceding year, showing an increase of 21%.
Average cash flow (N1) reached SR 263.4 billion against SR 223 billion, an increase of 18.1%. Period and saving deposits reached SR 136.6 billion against SR 113.3 billion, an increase of 20%. Deposits similar to cash reached SR 82.2 billion against SR 75.3 billion.
The following chart shows the developments in cash flow in the Kingdom, for the year 2003 and the 1st half of 2004:
(Figures shown are in billions of riyals)
Period Cash outside On demand Cash flow Savings and Cash flow Other deposits Cash flow
banks deposits (N1) period deposits (N2) similar to cash* (N3)
1998 45.019 95.253 140.272 83.436 223.708 58.353 282.062
1999 55.060 101.605 156.665 85.341 242.007 59.139 301.146
2000 51.019 114.481 165.500 90.832 256.332 58.299 314.631
2001 49.203 130.192 179.396 91.685 271.080 59.248 330.328
2002 52.329 150.101 202.339 108.028 310.367 70.232 380.600
2003 55.445 167.577 223.022 113.382 336.404 75.351 411.755
2004 60.133 203.319 263.452 136.673 400.125 82.275 482.400
Note: 1. Cash flow (N1) includes cash in circulation outside banks and on demand deposits.
2. Cash flow (N2) includes (N1) in addition to savings and period deposits.
3. Cash flow (N3) includes (N1) and (N2) as well as other deposits similar to cash.
Includes expatriates deposits in foreign currencies, deposits against securities, guarantees and remittances.
© Saudi Economic Survey 2005
