RIYADH: Saudi Arabia cut its US Treasury holdings by $10.8 billion to $149.6 billion in March, while the UAE reduced its portfolio by $5.8 billion to $114.1 billion, official data showed.
Despite the monthly drop, the Kingdom’s portfolio remained higher than the $131.6 billion recorded a year earlier, according to the US Treasury Department.
Saudi Arabia’s March holdings comprised $107 billion in long-term Treasury securities and $42.6 billion in short-term Treasuries, placing it 17th among foreign holders of US Treasuries.
The UAE also reduced its holdings from $119.9 billion in February. On a year-on-year basis, the Emirates’ Treasury portfolio rose from $104.3 billion in March 2025, ranking it 19th globally among foreign holders.
The UAE’s portfolio included $48.6 billion in long-term Treasuries and $65.5 billion in short-term Treasury securities.
The changes in Gulf holdings come amid heightened volatility in global bond and energy markets, as investors reassessed the outlook for inflation and interest rates following stronger-than-expected US inflation data and expectations that the Federal Reserve could keep rates elevated for longer.
Benchmark 10-year Treasury yields have climbed above 4.5 percent, increasing pressure on global bond markets and prompting some reserve managers to rebalance holdings.
Japan remained the largest foreign holder of US Treasury securities at $1.19 trillion, followed by the UK at $926.9 billion and China at $652.3 billion.
The Cayman Islands held $459.4 billion, Belgium held $454 billion, Canada held $439.4 billion, and Luxembourg held $432 billion.
Among notable monthly changes, Japan recorded the largest decline among the top holders, falling by $47.7 billion, followed by China with a $41 billion decrease.
The UK posted one of the largest increases, rising by $29.6 billion, while the Cayman Islands increased by $16.4 billion. Belgium edged down from $454.7 billion in February to $454 billion in March.
Total foreign holdings of US Treasury securities stood at $9.35 trillion in March, down from $9.49 trillion in February, according to Treasury International Capital data. The total was up from $9.05 trillion in March 2025.
