Corporate lending pushes Saudi bank loans past $800bn for the first time.
Saudi bank loans surpassed the SR3 trillion ($801.6 billion) mark for the first time in January, registering a 14.66 percent year-on-year increase.
According to figures from the Saudi Central Bank, also known as SAMA, this growth marks the fastest expansion since October 2022 and is primarily driven by a surge in business financing.
Corporate loans grew 18.5 percent over the past year, outpacing the 10.5 percent rise in retail lending. As a result, corporate credit now accounts for 54.09 percent of total bank lending, up from 52.34 percent in 2024.
Among business sectors, real estate activities continued to command the largest share of corporate loans, making up 21.13 percent of total business lending in January. Loans to this sector surged 30.57 percent year-on-year to SR343.6 billion.
The strong demand for real estate financing aligns with the sector’s growing role in the Saudi economy.
According to the General Authority for Statistics, real gross domestic product from real estate activities reached SR176.18 billion in the first nine months of 2024, accounting for around 7 percent of gross value added.
This marks an increase from SR172 billion in the same period last year, highlighting the sector’s expanding contribution to economic output.
The wholesale and retail trade sector followed, with credit facilities totaling SR204 billion, or 12.54 percent of total corporate loans. Meanwhile, manufacturing accounted for 11.7 percent, with loans rising to SR190.2 billion.
While professional, scientific, and technical activities hold a smaller share of total corporate lending at 0.52 percent, they recorded the highest annual growth rate, soaring 34.2 percent to SR8.38 billion.
Source: ARABNEWS
