Middle Eastern Nations Quietly Increase Holdings of US Government Debt Amid War

Amid ongoing war and geopolitical turmoil, several Middle Eastern countries have been quietly increasing their purchases of US government debt. Saudi Arabia raised its holdings of US Treasuries to $140.3 billion in May 2026, up from $140.1 billion the previous month. Compared to the same period last year, the kingdom’s holdings have increased by $12.6 billion, or 9.9%.

An even larger increase was recorded by the United Arab Emirates (UAE), whose holdings surged from $112.5 billion in April to $118.6 billion in May 2026, a monthly jump of $6.1 billion or 5.4%. Israel also expanded its ownership, with the value of its US Treasuries climbing from $113.4 billion to $117.6 billion, a monthly rise of $4.2 billion or 3.7%.

Combined, Saudi Arabia, the UAE, and Israel held approximately $376.5 billion in US Treasuries as of May 2026, an increase of $10.5 billion in just one month. The move by these three nations is likely linked to the management of foreign exchange reserves, the need to maintain liquidity in US dollars, and a strategy to place funds in assets perceived as safe havens amid heightened global uncertainty.

Overall, foreign ownership of US government debt rose to $9.371 trillion in May 2026, an increase of $18.5 billion from the previous month. The data underscores that US Treasuries remain a primary destination for global governments, central banks, and investors seeking a deep, liquid market for their reserves.