Saudi Arabia increased its US Treasury holdings by $4 billion by the end of June, pushing its total stockpile to over $140 billion—the highest level since the pandemic in 2020. This rise comes as part of a broader trend, with other major holders like China, the UK, and France also boosting their investments in US government debt. Key factors behind this move include the higher interest rates and the appeal of US Treasuries as a liquid and stable asset, according to Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC.

Saudi Arabia, the world's largest oil producer, has been steadily adding to its Treasury holdings since April. The yield on the benchmark 10-year Treasury rose by 10 basis points by the end of June, hovering around 3.9%. This contrasts with 2020 when Saudi Arabia reduced its US debt holdings as the pandemic shook the global economy. That year, the central bank transferred $40 billion to the kingdom’s sovereign wealth fund to finance stock investments during a market slump. Overall, foreign holdings of US Treasuries reached $8.2 trillion in June.