Saudi Central Bank

Not to be confused with Saudi National Bank.
Saudi Central Bank
البنك المركزي السعودي
Central bank ofSaudi Arabia
HeadquartersRiyadh, Saudi Arabia
Coordinates24°39′51″N 46°41′14″E / 24.6643°N 46.6871°E / 24.6643; 46.6871
Established4 October 1952 (1952-10-04)
Ownership100% state ownership[1]
GovernorAyman Al-Sayari
CurrencySaudi riyal
SAR (ISO 4217)
Reserves$415 billion (end-2024)[2]
Preceded bySaudi Arabian Monetary Authority
Websitesama.gov.sa

The Saudi Central Bank (Arabic: البنك المركزي السعودي), established on 4 October 1952 and known until November 2020 as the Saudi Arabian Monetary Authority (SAMA; Arabic: مؤسسة النقد العربي السعودي),[3] is the central bank of the Kingdom of Saudi Arabia. Despite the 2020 name change, the institution has continued to use the acronym SAMA.[4]

The bank is headquartered in Riyadh and its current governor is Ayman Al-Sayari, appointed by royal decree on 2 February 2023.[5] As of end-2024, SAMA's net foreign assets stood at approximately $415 billion, equivalent to 15 months of imports.[2]

History

Pre-establishment

Prior to the establishment of the Saudi Central Bank, the Saudi Hollandi Bank, a branch of the Netherlands Trading Society from 1926, acted as a de facto central bank. It kept the Kingdom's gold reserves and received oil revenues on behalf of the Saudi Arabian government.[6] In 1928 it assisted in the establishment of a new Saudi silver coin, commissioned by King Abdulaziz, which became the Kingdom's first independent currency. The Saudi Hollandi Bank handed over its responsibilities to the SAMA when it was established in 1952[7] and became a model for other foreign banks in the kingdom.[8]

Foundation and early years (1952–1970s)

SAMA was formally established by two royal decrees dated 20 April 1952 and began operations on 4 October 1952, with Jeddah as its original headquarters. George A. Blowers, an American national who had previously served as Deputy Director of the Economic Cooperation Administration overseeing the Marshall Plan, was appointed its first governor.[9] At the time of its founding, the Kingdom lacked a formal financial system; foreign currencies were used alongside Saudi silver coins in commercial transactions. Among SAMA's first tasks were establishing a banking system, issuing a national paper currency, and regulating monetary affairs.

In March 1961, the Saudi riyal was introduced as the Kingdom's official paper currency. During the 1970s and 1980s, SAMA focused on controlling inflation as the Saudi economy grew rapidly following the oil boom. Abdul Aziz Al Quraishi became the first Saudi national to serve as governor, appointed in 1974.

Relocation and modernisation (1980s–2000s)

SAMA relocated in late 1984 from Jeddah to Riyadh. The institution's new head office building in Riyadh was designed by American architect Minoru Yamasaki — best known for his design of the original World Trade Center in New York — and was completed in 1985.[10][11]

Supervision of the stock market was transferred from SAMA to the newly formed Capital Market Authority in July 2004. In 2003, SAMA took on oversight of the insurance sector, which was subsequently transferred to the Insurance Authority in November 2023.

Renaming and recent developments (2020–present)

On 24 November 2020, a royal decree approved the renaming of the institution from the Saudi Arabian Monetary Authority to the Saudi Central Bank, while retaining the acronym SAMA for its historical significance.[12]

The modern central bank operates through regulatory infrastructure developed by Irish firm Vizor.[13]

In March and April 2020, SAMA transferred 150 billion Saudi riyals (approximately US$40 billion) to the Public Investment Fund (PIF) to support market stability during the COVID-19 pandemic.[14]

In June 2024, SAMA joined the BIS Project mBridge as a full participant at its Minimum Viable Product (MVP) stage — a multi-central bank digital currency (CBDC) platform for cross-border payments involving China, Hong Kong, Thailand, and the UAE.[15] SAMA is also conducting domestic wholesale CBDC pilots in collaboration with local banks and fintech firms, as part of its ongoing research into digital currencies.

On 20 February 2025, SAMA issued an official symbol for the Saudi riyal, adopted by royal decree and developed in coordination with the Ministries of Culture and Media and the Saudi Standards, Metrology and Quality Organization.[16]

Functions

SAMA's core mandates include:[17]

  • Issuing and managing the national currency, the Saudi riyal
  • Formulating and implementing monetary policy and financial stability policies
  • Supervising and regulating financial institutions including commercial banks
  • Managing the Kingdom's foreign exchange reserves
  • Operating and developing payment systems, including MADA (previously SPAN), SARIE, and SADAD
  • Providing banking services to the government
  • Collecting and publishing financial and monetary data, and conducting economic research

International memberships

SAMA actively participates in several international and regional financial organisations, including the International Monetary Fund, the World Bank Group, the G20, the Bank for International Settlements, the Financial Stability Board, the Financial Action Task Force (FATF), the Islamic Financial Services Board, and the Gulf Monetary Council.

List of governors

Name[18] Tenure
Ayman Mohammed Al-Sayari 2023–present
Fahad Almubarak 2021–2023
Ahmed Abdulkarim Alkholifey 2016–2021
Fahad Almubarak 2011–2016
Muhammad Al-Jasser 2009–2011
Hamad Ibn Saud Al Sayari 1985–2009
Abdul Aziz Al Quraishi 1974–1983 (first Saudi national to hold the position)
Anwar Ali 1958–1974
Ralph Standish 1954–1958
George A. Blowers 1952–1954 (first governor)

Leadership and structure

A board of directors oversees the operations of SAMA. It comprises the governor, vice-governor, and three other members nominated from the private sector. The governor and vice-governor serve four-year terms, extendable by royal decree; other board members serve five-year terms, also extendable by royal decree. No member may be removed except by royal decree.

Senior management

Name Position Date of appointment
Ayman Mohammed Al-Sayari Governor 4 February 2023
Khaled Walid Al-Dhaher Vice Governor for Supervision & Technology 4 July 2022
Ziad Bander Al-Yousef Deputy Governor for Development & Technology N/A
Yazeed Ahmed Al-Sheikh Deputy Governor for Supervision N/A
Dr. Fahad Ibrahim Al-Shathri Deputy Governor for Research and International Affairs N/A
Talal Fouad Al-Humoud Deputy Governor for Investment N/A

Balance sheet

The SAMA balance sheet is denominated in Saudi riyals, which is pegged at an official rate of 3.75 against the US dollar. All currency notes issued by SAMA are fully backed by equivalent gold deposits.

(Millions of Saudi Riyals)

2007 2008 2009 2010 2011 2012*
Liabilities
Notes Issued
Government Deposits 514,123 933,912 1,008,251 1,203,477 1,299,676
Commercial Banks' Deposits 36,277 44,698 50,715 54,976 63,511 68,011
Foreign entities' Riyal Deposits 14,939 12,488 10,300 10,310 3,774 3,750
Other liabilities 525,424 479,406 452,599 495,823 618,069 617,698
Total 1,196,816 1,709,995 1,570,653 1,705,389 2,057,864 2,154,065
Assets
Currency cover (gold) 106,054 121,066 123,127 136,029 169,033 164,930
Cash in vault 23,842 27,053 23,876 25,060 29,187 24,171
Deposits with banks abroad 246,792 379,487 335,673 343,887 414,007 495,246
Investments in foreign securities 790,559 1,154,247 1,071,542 1,181,916 1,427,820 1,446,610
Other assets 29,569 28,142 16,435 18,497 17,817 23,108
Total 1,196,816 1,709,995 1,570,653 1,705,389 2,057,864 2,154,065

* 2012 figures are at end of first quarter.[19]

SAMA Foreign Holdings

In addition to its central banking functions, SAMA controls SAMA Foreign Holdings, the sovereign wealth fund of Saudi Arabia, which invests the country's foreign exchange reserves. As of end-2024, SAMA's net foreign assets stood at approximately $415 billion.[2] The fund has historically ranked among the largest sovereign wealth funds globally.[20]

Payment systems

SAMA operates several electronic payment and settlement systems linking all banks and related entities in the Kingdom:

  • SARIE (Saudi Arabian Riyal Interbank Express): An electronic interbank payment and settlement system, operational since 1997.
  • MADA (formerly SPAN): The national debit card and ATM network.
  • SADAD: A government payment and billing system, launched in 2004, enabling electronic bill payments across all banking channels.

Digital currency initiatives

SAMA has been actively researching central bank digital currencies (CBDCs). In 2019–2020, it conducted Project Aber, a joint pilot with the Central Bank of the United Arab Emirates to test wholesale cross-border CBDCs. In June 2024, SAMA formally joined BIS Project mBridge as a full participant, becoming the fifth central bank member alongside China, Hong Kong, Thailand, and the UAE, in a multi-CBDC platform designed to facilitate real-time cross-border settlements.[21] SAMA is also conducting domestic wholesale CBDC pilots with local banks and fintech firms to evaluate the economic impact and technical feasibility of a digital riyal.[22]

See also

References

  1. ^ Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
  2. ^ a b c "Saudi Arabia: Concluding Statement of the 2025 Article IV Mission". International Monetary Fund. 25 June 2025.
  3. ^ "Saudi Arabia's SAMA renamed Saudi Central Bank". www.tradearabia.com. Archived from the original on 23 March 2023. Retrieved 13 September 2021.
  4. ^ "SAMA renamed to Central Bank of Saudi Arabia, policy remains unchanged says governor". Al Arabiya English. 25 November 2020. Retrieved 16 June 2023.
  5. ^ "Saudi Arabia: Royal Order to appoint Ayman Al-Sayari as Governor of the Central Bank". Asharq Al-Awsat. 2 February 2023. Retrieved 2 February 2023.
  6. ^ "Saudi Hollandi Bank History". Saudi Hollandi Bank. Retrieved 26 May 2013.
  7. ^ Albert Habib Hourani; Philip Shukry Khoury; Mary Christina Wilson (1993). The Modern Middle East: A Reader. University of California Press. p. 587. ISBN 978-0-520-08241-0.
  8. ^ "SHB Overview". Saudi Hollandi Bank.
  9. ^ "Saudi Central Bank (SAMA)". Saudipedia. Retrieved 1 January 2024.
  10. ^ Friend, Theodore (2012). Woman, Man, and God in Modern Islam. Wm. B. Eerdmans Publishing. ISBN 978-0-8028-6673-8.
  11. ^ Gyure, Dale Allen (28 November 2017). Minoru Yamasaki: Humanist Architecture for a Modernist World. Yale University Press. ISBN 978-0-300-22986-8.
  12. ^ "SAMA renamed to Central Bank of Saudi Arabia, policy remains unchanged says governor". Al Arabiya English. 25 November 2020. Retrieved 16 June 2023.
  13. ^ "Technology consultant of the year: Vizor Software". 23 January 2018.
  14. ^ "SAMA Had Transferred $40 Billion to PIF, More Firepower for Market Opportunities". swfinstitute.org. Retrieved 13 June 2020.
  15. ^ "SAMA Joins mBridge Project". Saudi Press Agency. 5 June 2024.
  16. ^ "Custodian of the Two Holy Mosques approves Saudi Riyal currency symbol". Saudi Press Agency. 20 February 2025.
  17. ^ "Functions of the Saudi Central Bank". Saudi Central Bank. Retrieved 16 April 2023.
  18. ^ "Historical preview". Saudi Central Bank.
  19. ^ Saudi Arabian Monetary Agency 48th Annual Report, p. 36
  20. ^ "SWFI Fund Rankings". Sovereign Wealth Fund Institute. Retrieved 4 September 2014.
  21. ^ "SAMA Joins mBridge Project". Saudi Press Agency. 5 June 2024.
  22. ^ "Saudi Central Bank Continues CBDC Experimentations". Saudi Central Bank.
This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.