Saudi bank lending hits record $850b on corporate demand

RIYADH, Aug 18 (Arab News): Saudi banks' outstanding loans reached SR?3.2?trillion ($849.7 billion) in June, marking a 15.8 per cent increase compared to the same month of 2024.

According to data from the Saudi Central Bank, known as SAMA, the majority of this growth, some 76 per cent, was driven by corporate lending, which totaled SR1.8?trillion.

Loans to individuals accounted for the remaining SR1.4?trillion, although their share declined from nearly 50 per cent a year earlier to about 44 per cent.

Business loans posted a 22.5 per cent year-on-year increase, reflecting vigorous demand across sectors tied to Vision?2030 initiatives. Real estate emerged as a standout, with banks extending SR384?billion in financing, making up nearly 22 per cent of corporate loans, and reflecting a 39 per cent year-on-year jump.

Wholesale and retail trade ranked second, comprising 11.92 per cent of corporate lending at SR213.1 billion, reflecting an 8.43 per cent annual rise. The electricity, gas, and water supply sector followed with an 11.15 per cent share, or SR199.31 billion, while manufacturing accounted for 10.76 per cent, reaching SR192.25 billion.

Real estate and transportation and storage recorded the highest growth rates at 39.9 per cent, while health and social work activities grew 35.4 per cent to SR26.9?billion, and the financial and insurance sector climbed 34 per cent to SR167.5?billion, according to SAMA's June figures. The financing increase underscores banks' critical role in propelling Vision?2030's economic diversification.