Middle East demand for US debt soars to $400B in turbulent year
The first half of 2025 saw regional investors boost holdings of US Treasuries to record levels, led by the UAE, Israel and Kuwait, as markets digested turbulence from President Trump's trade agenda.
Foreign appetite for US government debt has never been higher, and investors from the Middle East are at the heart of the buying spree.
Global holdings of US Treasuries surged past $9 trillion in the first half of 2025, even as President Donald Trump’s tariff salvos have shaken confidence in American assets this year.
In the Middle East, governments from the Gulf to Israel have lifted their exposure to record levels, pushing the region’s combined holdings near $400 billion as of June 30, according to Treasury Department data released in August. Saudi Arabia and Israel both rank among the top 20 foreign holders of US Treasuries, which include a variety of debt instruments.
At the halfway mark of 2025, the region’s Treasury holdings have climbed nearly $34 billion to hit $397 billion, roughly the size of Egypt’s or Malaysia’s entire gross domestic product last year.
