Saudi banking sector records robust loan growth in April 2024
Date
5/30/2024 8:41:45 AM
(MENAFN) In April, Saudi Arabia's banking sector witnessed a notable surge in loans, reaching SR2.68 trillion (USD715.56 billion), representing an 11 percent uptick from the previous year, according to official data from the Saudi Central bank (SAMA).
SAMA's figures reveal that personal loans constituted 47 percent of total bank lending, with corporate loans comprising the remaining 53 percent. This expansion is attributed to the flourishing real estate projects aligned with the Kingdom's Vision 2030, coupled with heightened demand for housing credit among expatriates. The banking sector's digital transformation and streamlined operations further fueled this growth.
Personal loans, encompassing various credit types for individuals, amounted to SR1.27 trillion, reflecting a 7 percent increase during the period. The surge in personal loans is largely driven by the Kingdom's housing ownership initiatives, supported by government-backed programs and incentives aimed at enhancing accessibility to affordable housing. Additionally, the rising expatriate population in Saudi Arabia has contributed to increased borrowing for residential property acquisitions.
Additionally, the integration of digital technology and the optimization of banking procedures have notably increased the efficiency of loan processing and fund disbursement for lenders.
The implementation of digital banking services enables borrowers to swiftly initiate and monitor their loan requests via online platforms, significantly streamlining the borrowing journey. These advancements in banking technology have simplified the lending process, promoting transparency and accessibility, thus contributing to the rising trend of personal loans throughout Saudi Arabia.
Regarding corporate loans, a substantial portion, constituting 20 percent of the total, was allocated to real estate activities, totaling SR278.86 billion. This sector experienced a notable 27 percent surge during the specified timeframe.
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