Saudi Arabia's net foreign assets hit 1.8 trillion riyals ($480 billion) in May, their highest level ever, as surging oil prices helped the kingdom offset increased spending aimed at boosting growth and staving off the protests that have swept through other Arab nations.
The gains in the kingdom's foreign asset position continued for at least the sixth consecutive month, climbing 2.5 percent from April levels of 1.756 trillion riyals, according to a report released by the Saudi Arabian Monetary Agency, the country's central bank.
"It's a reflection of the high oil revenues," John Sfakianakis, chief economist at the Riyadh-based Banque Saudi-Fransi, said Thursday. "If oil prices stay at these levels, then Saudi Arabia will see its foreign assets climbing above the half a trillion (dollar) mark, which is significant."
Unrest in the Arab world, including the civil war in Opec member Libya, helped propel oil prices well above $100 per barrel for much of the past few months before the US benchmark crude futures contract eased back to the low-to-mid $90s following the producer group's meeting earlier this month. The increase in Saudi Arabia's foreign assets came as the prices climbed and the kingdom, to offset lost Libyan production, ramped up its output.
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