Saudi Arabia’s banking sector is witnessing a rapid rise in loans, led by Saudi corporate lending growth. Total bank loans in the Kingdom reached SR3.17 trillion ($845 billion), showing a strong annual increase. This surge highlights how Saudi corporate lending growth fuels the country’s accelerating economic momentum and expanding business activities.
Recent data shows that business loan growth now makes up more than half of all bank credit in Saudi Arabia. Business loans account for 55.35 percent of total credit, rising from 52.87 percent last year. The expansion in Saudi business lending jumped 21.73 percent, far exceeding the roughly 10 percent increase in personal loans. This change highlights how Saudi banks are focusing more on funding major projects and companies rather than consumer borrowing.
Saudi corporate lending growth makes the Kingdom a leader in credit expansion across the Gulf region. While many Gulf Cooperation Council countries benefit from economic growth and government spending, Saudi banks lead the pack in loan growth. This leadership reflects broad growth across sectors such as construction, real estate, education, and transport. Other Gulf nations show more limited increases, but Saudi Arabia’s credit expansion remains wide-ranging.
Within corporate lending, real estate dominates, making up over 21 percent of corporate credit. This sector grew by nearly 38 percent, driven by high demand for housing, commercial infrastructure, and major projects like NEOM and Red Sea resorts. Banks have significantly increased loans for land acquisition, construction, and property development to support Saudi Arabia’s ambitious construction boom and Saudi corporate lending growth.
Moreover, Saudi Arabia’s real estate sector shows strong potential for ongoing growth. Forecasts suggest the property market will exceed $100 billion in value, growing steadily. Demand for Grade-A office space in Riyadh has soared, with vacancy rates dropping to historic lows. Meanwhile, Jeddah is becoming a competitive hub, attracting regional and international companies.
Other key sectors benefiting from the rise in Saudi business lending include wholesale and retail trade, utilities, and manufacturing. Utilities lending supports expanding power grids, water, and renewable energy projects. Manufacturing loans reflect growth in petrochemicals, metals, and consumer goods, aligning with the Kingdom’s diversification goals.
Education and transport stand out as the fastest-growing sectors in Saudi corporate lending growth. Education loans jumped by nearly 50 percent as Saudi Arabia expands schools and universities. Transport and logistics financing surged 43 percent, backing Saudi Arabia’s plan to become a global logistics hub. Banks fund key projects such as airport expansions, new ports, and railway developments.
Looking ahead, Saudi banks will carefully balance financing this rapid corporate growth while managing risks. Overall, Saudi corporate lending growth has become the driving force behind the Kingdom’s banking sector transformation, reshaping the lending landscape.
