Saudi Bank Loans Hit SR2.85 Trillion in September
In a recent data release, Saudi bank loans surged to SR2.85 trillion ($760.84 billion) in September, marking a significant annual growth rate of 12.16 percent — the highest in 19 months.
Corporate Lending Dominates the Sector
Data from the Saudi Central Bank, also known as SAMA, revealed that corporate lending accounted for approximately 53.5 percent of total loans, with individual loans making up the rest.
Business Financing Demand on the Rise
Corporate lending experienced a robust growth rate of 15.75 percent, surpassing the 8.3 percent annual growth in personal loans, indicating a growing demand for business financing across various sectors.
Real Estate Leads Corporate Lending
Real estate activities emerged as the front-runner in corporate lending, representing 20.37 percent of all business loans and witnessing a remarkable growth of 28.63 percent to reach SR310.83 billion.
Key Sectors Driving Lending Growth
Following real estate, the wholesale and retail trade sector and manufacturing sector were significant contributors to corporate lending, highlighting the diverse sectors driving economic growth in Saudi Arabia.
SAMA’s Regulatory Limits and Economic Stability
SAMA has set a regulatory limit of 90 percent for loans-to-deposits ratios, underscoring the importance of balancing lending capacity with liquidity stability while supporting economic growth through corporate and individual borrowing.
Real Estate Market Surge in Saudi Arabia
The surge in corporate real estate lending in Saudi Arabia aligns with Vision 2030’s objectives for urban expansion, economic diversification, and investment attraction, driving robust demand for infrastructure and commercial developments.
Catalyzing Growth in Sectors under Vision 2030
Saudi Arabia’s focus on innovation and technology, as seen through initiatives like the Saudi Minds Platform, is expected to further stimulate growth in sectors like scientific, professional, and technical services, aligning with the goals of Vision 2030.