Saudi Arabia’s holdings of US Treasury securities declined to $134.8 billion in January 2026, falling by $14.7 billion compared to December 2025, according to data released by the US Treasury Department. The movement pushed the Kingdom one position lower in the global rankings of major US debt holders, from 17th to 18th place, as South Korea overtook it with holdings of just over $141 billion during the same period.
How the Portfolio Breaks Down
Long-term bonds account for the majority of Saudi Arabia’s exposure, making up $106.2 billion, or 78.8% of its total US Treasury position. The remaining $28.6 billion sits in short-term instruments, representing 21.2% of the overall holding. This structure reflects a conservative, liquidity-oriented approach typical of central bank reserve management, prioritising instruments that offer both stability and ease of deployment when needed.
A Recalibration in the Reserve Mix
The January decline marks a notable adjustment in a portfolio that has historically been one of the most prominent Gulf exposures to US sovereign debt. Saudi Arabia’s central bank, SAMA, manages the Kingdom’s official foreign reserves and has long maintained a substantial allocation to US Treasuries given their unmatched global liquidity and reserve currency status. The reduction, while significant in absolute terms, should be read within the context of the Kingdom’s broader reserve base, which stood at SAR 1.78 trillion at the end of 2025 — a six-year high — as disclosed in earlier SAMA data.
Across the Gulf more broadly, sovereign wealth managers have been reassessing international asset allocations as global interest rate dynamics shift and alternative investment opportunities, including infrastructure, technology, and real assets, attract growing attention from state-backed funds.
Where Saudi Arabia Stands Globally
In the wider global picture, Japan remains the largest holder of US Treasuries by a considerable margin, with approximately $1.22 trillion in January 2026. The United Kingdom follows in second place with $895.3 billion. Saudi Arabia’s 18th-place position reflects the scale of its overall reserves, even as the composition continues to evolve in line with longer-term sovereign investment strategy.
