Saudi Banks Witness 11% Surge in Loans in April 2024
Fuelled by corporate activities, loans have increased to USD 716 billion throughout the month.
Loans from Saudi Arabia’s banking sector reached SAR 2.68 trillion (USD 716 billion) in April 2024, marking an 11% increase compared to the same period in 2023. According to figures released by the Saudi Central Bank (SAMA), personal loans accounted for 47% of the total lending by banks, while corporate loans comprised the remaining 53%.
This growth in both personal and corporate lending can be attributed to several factors. The expansion of real estate projects under the Kingdom's Vision 2030, coupled with high demand for housing credit from expatriates, as well as the digitization and streamlining of banking operations, have been cited as likely contributors.
This rise in personal loans - which increased by 7% to SAR 1.27 trillion during this period - is primarily driven by the Kingdom's commitment to homeownership plans which encourage individuals to pursue housing projects. Additionally, the growing number of expatriates in Saudi Arabia has boosted demand for residential properties, leading to increased borrowing for home purchases.
The digitalisation and streamlining of banking operations have also made it more convenient for lenders to process applications and disburse funds efficiently. Borrowers can now quickly request and track their loan applications through online platforms, streamlining the entire borrowing process.
According to an April report by The Banker, the Kingdom’s financing growth is poised to continue its upward trajectory, driven by sustained demand for corporate and wholesale credit. The year 2024 may also provide long-awaited opportunities for direct lending to the country’s giga-projects, signaling a significant development in the region’s financial landscape.
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Jun 14, 2024 -
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