RIYADH: Saudi finance companies’ total assets soared by 9 percent, reaching SR62.36 billion ($16.62 billion) in the first half of 2023, compared to the same period last year, the latest data issued by the Saudi Central Bank, also known as SAMA, showed. 

In its semi-annual performance report on the finance sector and real estate refinance, SAMA noted that the credit portfolio of such firms experienced a 11 percent year-on-year increase, reaching SR80.71 billion by the end of the first half. 

The publication also revealed that the majority of loans issued during this period were directed toward the retail sector, accounting for 76 percent of total loans. Micro, small, and medium-sized enterprises received 21 percent of the loans, while corporate sector financing made up 3 percent. 

The aggregate assets of financing firms reached SR62.4 billion by the close of the first half, marking a 13 percent annual increase. 

However, the report revealed that the combined net income of these firms declined by 36 percent year on year in the first half, reaching SR739 million. 

In terms of credit portfolio composition, residential real estate comprised 28 percent, amounting to SR22.9 billion, followed closely by consumer and vehicle financing at 27 percent and 25 percent, respectively. 
Riyadh led the credit portfolio of financing companies, accounting for 39.8 percent by the end of first six months, followed by Makkah at 24 percent and the Eastern Province at 19 percent. 
SAMA also reported a 86 percent Saudization rate in such firms operating in the Kingdom, with a total of 6,074 employees in the sector by the end of the first half. 

In September, SAMA’s monthly statistical bulletin revealed a 327 percent surge in Saudi Arabia’s balance of payments for tourism during the first half of 2023, amounting to SR40 billion compared to the same period in the previous year.  

The balance of payments for tourism also marked a 34 percent increase in the second quarter, reaching SR22.8 billion, with foreigners spending SR46.6 billion during the same period.