Saudi Arabia’s banking sector continues to expand at a strong pace. Total bank credit has reached SR3.1 trillion, equal to $827 billion. As a result, Saudi lending growth is now the fastest in nearly four years. Notably, corporate lending is the biggest factor behind this surge.
Currently, corporate credit accounts for over 55 percent of total bank loans. This reflects a noticeable move away from retail lending toward business-driven expansion. Companies secured more than SR1.7 trillion in financing, marking a 22.3 percent annual rise. Clearly, the Kingdom’s credit momentum now comes mainly from commercial and industrial activity.
Real estate remains the top sector for corporate loans. It accounts for 22 percent of business credit and reached SR374.5 billion. This shows strong demand for housing, offices, and infrastructure. Moreover, this trend supports Saudi lending growth through mega-city and Vision 2030 developments.
Meanwhile, other sectors also see rising credit volumes. Manufacturing loans hit SR189.18 billion. Electricity, gas, and water loans totaled SR181.43 billion. Thus, public and private investments continue to support Saudi lending growth across vital industries.
Notably, education loans showed the highest growth rate, rising 44.7 percent to reach SR9.35 billion. Though a small share, this increase highlights Saudi Arabia’s focus on long-term development. Financial and insurance sectors also grew by over 38 percent.
Retail lending stood at SR1.39 trillion, with a 9.6 percent annual rise. However, its share of total loans fell below 45 percent. This decline shows how banks now prioritize corporate lending. Therefore, Saudi lending growth has shifted toward business sectors instead of consumer loans.
Additionally, lending quality also improved across sectors. Finance, utilities, and services saw higher lending with lower risk. Banks now avoid high-risk sectors like construction and agriculture. This supports long-term Saudi lending growth and financial stability.
Banks are also moving to a new model. They issue loans and transfer the risk using tools like securitization. This “originate-to-distribute” model boosts lending capacity. Mortgage-backed securities and new legal tools also support more efficient financing.
In conclusion, banks now include ESG standards and automation. AI improves loan decisions, while green bonds and sustainability-linked loans are gaining traction. These changes make Saudi lending growth more resilient and future-ready.
