Finance Companies' Credit Surges To SAR 20.858 Billion By End Of Q3 2024

The credit extended by finance companies to non-individuals reached approximately SAR20.858 billion by the end of Q3 2024. This represents an annual growth rate of 8.4%, with an increase of SAR1.612 billion compared to the same period in 2023, when it was SAR19.246 billion. The data, released in December by the Saudi Central Bank (SAMA), covers 11 different economic sectors.

Small enterprises accounted for about 38% of the total credit, receiving SAR7.883 billion. Medium enterprises followed closely with a 33% share, amounting to SAR6.929 billion. Large companies received 16% of the total credit, which equates to SAR3.403 billion, while micro-enterprises obtained 13%, totalling SAR2.643 billion.

The construction sector secured the largest portion of financing, receiving SAR6.450 billion or roughly 31% of the total credit provided. The services sector came next with SAR4.548 billion, representing 22%. Trade was third with SAR3.110 billion, accounting for about 15% of the total.

Other sectors collectively received SAR2.051 billion, making up around 10% of the total credit allocation. The industrial sector was allocated SAR1.978 billion, which is about 9.5%. Transportation and communications sectors received SAR1.616 billion or 8% of the total credit.

The water, electricity, gas, and health services sectors were allocated SAR634 million, representing approximately 3% of the total credit distribution. Mining and quarrying attracted SAR150 million, accounting for about 1%. Agriculture and fishing sectors received the least credit at SAR124 million.

Government and semi-government activities were allocated SAR117 million in credit financing, while other financing activities received only SAR80 million in total allocations.

On a quarterly basis, there was a growth of 2%, with an increase of approximately SAR324 million from Q2's figure of SAR20.534 billion in the same year.

With inputs from SPA