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Gulf Central Banks Boost Foreign Assets as Money Supply Expands in 2024

Gulf Central Banks Boost Foreign Assets as Money Supply Expands in 2024
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The net foreign assets of Gulf central banks climbed to nearly US$762 billion in 2024, a 6.3 percent rise from the previous year, according to new figures from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The report shows steady growth across key monetary indicators. The region’s narrow money supply (M1) reached about US$801 billion by the end of 2024, up 10 percent year-on-year. Broad money supply (M2) stood at roughly US$1.76 trillion, recording a 9.3 percent increase compared with the close of 2023.

While M2 expanded in every quarter of 2024, M1 showed weaker performance in the first three quarters of 2023, driven by a decline in cash deposits. The turnaround in 2024 reflects stronger demand deposits, which posted significant monthly gains compared to the same months a year earlier.

Quasi-money, which includes savings and time deposits, also recorded monthly growth, though the pace slowed over time. Currency in circulation outside banks grew at more moderate rates, contributing alongside quasi-money to the broader expansion in money supply.

The rise in foreign assets and liquidity highlights the region’s solid financial position, underscoring resilience in the GCC’s monetary framework through 2024.

News Source: Emirates News Agency

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Shahba Mayyeri

Written by Shahba Mayyeri

Shahba is a Content Creator at HiDubai with 3 years of experience in crafting compelling stories and articles. She holds a Master’s degree in Media and Communications from MAHE Dubai.
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