Bank Loans in Saudi Arabia Rise by 11% to $734 Billion

RIYADH: According to official data, Saudi Arabia’s banking sector loans increased to SR2.75 trillion ($733.82 billion) in June, representing an annual increase of 11.35 percent.

According to an analysis published by SAMA, the Saudi Central Bank, personal loans made up 47% of the total lending in the month, while corporate credit accounted for 53%.

According to Fitch, despite a slowdown in the retail mortgage market, financing growth in the Kingdom is expected to reach roughly 10% in 2024 due to persistent demand for corporate and wholesale credit.

Furthermore, banks may profit from direct lending opportunities to the nation’s giga-projects in 2024. According to the SAMA report, personal loans, which include all forms of credit given to individuals, amounted to SR1.29 trillion, representing a 7% annual growth.

The bulk of corporate financing exchanges were awarded for real estate-related projects, and during this time they grew by 26% to reach SR286.29 billion in June.

Retail and wholesale trade funding came next, accounting for SR195.87 billion, or 13 percent of the company’s holdings. During this time, there was an 8% increase in claims in this category. A 1 per cent increase over the same month last year was seen in the 12 per cent share, or SR175.24 billion, that went towards lending for manufacturing activities.

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