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.
That momentum continued through the year, with the sector expanding to 261 licensed companies by December, according to the program’s annual report.
As of mid-2025, the fintech ecosystem has grown further, with 317 firms active in the Kingdom, including 86 that have secured funding and raised a combined $4.66 billion in venture capital, according to a July report by Tracxn.
This ecosystem is powering digital banking, embedded finance, digital wallets, and fintech solutions that make banking and payments more accessible, efficient, and aligned with modern consumer needs.
The government’s long-term target, as outlined in the Financial Sector Development Program, is to scale up to 525 fintech companies and create more than 18,000 sector-related jobs by 2030, reinforcing the Kingdom’s drive to position itself as a regional hub for financial innovation.
The robust lending landscape translated into strong earnings across the banking sector. The Saudi National Bank reported a second-quarter net profit of SR6.1 billion, up 17.3 percent year on year, citing increases in operating income and reductions in impairment provisions, according to its filings on Tadawul.
Al Rajhi Bank posted SR6.15 billion in profit, a 31 percent rise, driven by strong financing and investment income despite a rise in provisioning.
Other banks also recorded impressive gains. Saudi Awwal Bank saw net earnings of SR2.13 billion, up 9.5 percent, while Banque Saudi Fransi earned SR1.30 billion, rising 21 percent, based on Tadawul disclosures.
Sector-wide, second-quarter combined profits topped SR23 billion, marking the strongest quarterly earnings in Saudi banking history.
