Saudi banks’ lending surpasses SAR 3 tn in January

Bank credit across all market segments grew 14.7% y-o-y to surpass SAR 3 tn in January, according to the Saudi Central Bank’s (Sama) latest monthly statistical bulletin (pdf).

The breakdown: Personal loans continued to account for the lion’s share (46.7%) of all credit handed out by local banks during the month, followed by corporate credit to the real estate sector, and financial and ins. activities.

IN CONTEXT- Saudi banks’ credit is projected to rise on the back of a heightened push for funding megaprojects coupled with a growing appetite for homeownership, according to a recent report from rating agency Moody’s. The firm sees the government’s wide-reaching economic transformation plans as providing ample business and lending prospects for the domestic banking sector.

Meanwhile, residential mortgages financed by banks hit SAR 10.5 bn during the first month of the year, up 38.8% y-o-y, with a total of 13.4k contracts. This includes SAR 6.6 bn for houses, SAR 3.4 bn for apartments, and SAR 475 mn for land contracts.

REMEMBER- Mortgages have led banks’ lending growth in the Kingdom over the past five years, S&P Global said previously. The banking system remains robust with profitability and stable dividend distribution backing capitalization throughout 2025-2026, S&P Global added.