Saudi Finance Companies Experience 13% Surge in Total Assets
Saudi Arabia’s finance companies saw a significant 13 percent increase in total assets to SR64.2 billion ($17.12 billion) in 2023, as per the latest data released by the Kingdom’s central bank.
Growth in Paid-Up Share Capital and Financial Portfolio
Amid rising investment activities and favorable economic conditions, the paid-up share capital for these firms surged by 6 percent compared to 2022, reaching SR15.5 billion. The total financial portfolio of these institutions also increased by 12 percent year-on-year to SR84.7 billion in 2023.
Net Income and Real Estate Refinancing Sector
The overall net income of these companies in Saudi Arabia stood at SR1.7 billion last year. Additionally, the total assets of the real estate refinancing sector witnessed a 48 percent increase, reaching SR31 billion in 2023.
Sector Breakdown and Saudization Progress
The retail sector accounted for the largest share of loan portfolio classification at 77 percent, followed by the micro, small, and medium enterprises sector at 20 percent, and the corporate sector at 3 percent. The report also highlighted that over 80 percent of employees in financial companies in the Kingdom are Saudis, with Saudis making up 86 percent of the total number of employees.
Loan Figures for Finance Companies and Banks
Finance companies in Saudi Arabia provided loans amounting to $4.6 billion in the last quarter of 2023, marking a year-on-year increase of 9.3 percent. Meanwhile, banks in the Kingdom offered credit facilities worth $68.9 billion in the same period, representing a 21.1 percent rise compared to the previous year.
Central Bank’s Statistics on Banking Sector
In its May monthly statistical bulletin, the central bank revealed that the Saudi banking sector’s loans grew to SR2.68 trillion in April, showing an 11 percent increase compared to the same month of the previous year. Personal loans made up 47 percent of banks’ total lending, with corporate loans accounting for the remaining 53 percent.