Gulf Central Banks’ Net Foreign Assets Reach $761.9 Billion Amid Strong Monetary Growth in 2024
Ashwini Gambo
Muscat, Sep.15 : The Gulf region’s central banks continue to show strong financial resilience, with net foreign assets reaching USD 761.9 billion by the end of 2024 a 6.3% increase over the previous year, according to the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).
This increase underscores robust external financial positioning across the GCC, supported by sustained energy revenues, fiscal consolidation, and diversified investment strategies.
In tandem with this, the narrow money supply (M1) across the GCC reached USD 801 billion, up 10% year-on-year by the close of 2024. Meanwhile, the broad money supply (M2) climbed to approximately USD 1.763 trillion, reflecting a 9.3% annual increase indicating a solid expansion in liquidity across the Gulf economies.
The GCC-Stat data highlights that M2 rose consistently across all quarters in 2024, while M1 declined during the first three quarters of 2023 due to a reduction in cash deposits. However, 2024 saw a strong recovery in demand deposits, which showed significant year-on-year monthly gains, helping drive the rebound in M1.
Additionally, quasi-money which includes savings and time deposits continued to grow, albeit at a slower pace. Currency in circulation outside banks also posted gains, though these remained modest compared to the growth in deposits.
The upward trajectory of both M1 and M2 indicates increased consumer and business confidence, improved banking sector performance, and greater monetary flexibility in supporting economic activity across the GCC. The data reflects both monetary expansion and financial system stability, key to supporting the region’s economic diversification and Vision 2030 goals.
