RIYADH: Saudi banks’ outstanding loans reached SR 3.2 trillion ($849.7 billion) in June, marking a 15.8 percent 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 percent, 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 percent a year earlier to about 44 percent.
Business loans posted a 22.5 percent 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 percent of corporate loans, and reflecting a 39 percent year-on-year jump.
Wholesale and retail trade ranked second, comprising 11.92 percent of corporate lending at SR213.1 billion, reflecting an 8.43 percent annual rise. The electricity, gas, and water supply sector followed with an 11.15 percent share, or SR199.31 billion, while manufacturing accounted for 10.76 percent, reaching SR192.25 billion..
Real estate and transportation and storage recorded the highest growth rates at 39.9 percent, while health and social work activities grew 35.4 percent to SR26.9 billion, and the financial and insurance sector climbed 34 percent to SR167.5 billion, according to SAMA’s June figures.
The financing increase underscores banks’ critical role in propelling Vision 2030’s economic diversification. They are instrumental in funding giga‑projects, infrastructure expansion, transport developments, housing initiatives, and social services.
Real estate lending boom stems from rising homeownership goals, urban expansion, and megaprojects such as NEOM, further bolstered by regulatory advancements enhancing transparency and efficiency in property finance.
Digital innovation and fintech are also key enablers of this transformation. Electronic payments accounted for 79 percent of all retail transactions in 2024, up from 70 percent in 2023, as part of SAMA’s drive to push digital adoption across the economy.
By the end of the second quarter of 2024, the number of fintech firms operating in Saudi Arabia had climbed to 224, surpassing the interim target of 168 under the Financial Sector Development Program.