Mubasher - Mahmoud Jamal: GCC investments in US Treasury bills and bonds rose 3.87% on a monthly basis at the end of last July, to $228.712 billion from $220.19 billion at the end of June 2022.
Data from the United States Treasury Department issued today, Friday, showed that Saudi Arabia’s investments, the largest holders of Gulf countries in US bonds, rose by 2.013 percent to reach $121.6 billion until the end of July 2022, compared to $119.2 billion until the end of last June.
Kuwait came second, as its investments in US bonds increased by 7.4% during last July to $49.4 billion from $46 billion at the end of June 2022.
The UAE came in third place, with total investments of $41.3 billion at the end of last July, compared to $39.9 billion in the previous month, an increase of 3.5%.
Then Qatar, which raised those investments from $7.272 billion at the end of June 2022 to $8.231 billion at the end of last July, recording an increase of 13.2%.
Followed by the Sultanate of Oman, which raised these investments by 4.4% from $6.702 billion at the end of last June to $6.996 billion at the end of July 2022.
Bahrain topped the list of US bond investments, which increased it by 6.56% from $1.112 billion at the end of last June to $1.185 billion at the end of July 2022.
It is noteworthy that what the US Treasury discloses in its monthly statements is the investments of the Gulf countries in US Treasury bills and bonds only, and does not include those other investments in the United States, whether governmental or private.
US Treasury bonds are a means of collecting money and debts from countries and institutions, and the government pays them at the time of their maturity, which varies according to the term of the bond.
US bonds are attractive because of the low risk of default; This explains the low return on it, interest, even though the US Federal Reserve (the central bank) has been implementing a plan to raise interest rates for some time.
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