Saudi Lending Hits USD 827 Billion as Corporate Credit Drives Growth

Saudi Arabia’s banking sector reached a lending milestone in March with total credit hitting USD 827.2 billion, marking a 16.26% year-on-year rise. This is the sharpest annual increase in nearly four years, driven largely by corporate lending, which grew by over 22% to account for 55.19% of all bank credit.

Real estate led corporate lending with USD 374.5 billion in loans, up more than 40% from the previous year. Other sectors, including wholesale and retail trade, manufacturing, and utilities, also saw robust growth due to increased spending and infrastructure projects. Education, though a small slice of total lending, posted the fastest expansion, rising 44.7% to USD 9.35 billion.

Retail lending also grew to USD 370.4 billion but lost market share, reflecting the banking sector’s shift toward business financing. Meanwhile, financial services and insurance lending climbed over 38%, boosted by greater demand and fintech activity across the economy. A McKinsey report noted banks are targeting lower-risk sectors and using securitization tools to expand lending while managing exposure.

Saudi banks are also adopting new models like originate-to-distribute lending and investing in AI-powered systems to boost efficiency. McKinsey estimates lending demand will grow 12% to 14% annually through 2030, but highlights the need for productivity gains and stronger digital operations to sustain momentum in an increasingly competitive market.