Saudi Arabia's Bank Credit Surges To Historic High Exceeding SAR 2.8 Trillion By August 2024

By the end of August 2024, bank credit in Saudi Arabia reached a record high, totalling approximately SAR2.8 trillion. This data, from the Saudi Central Bank (SAMA), shows an annual growth rate of 12.1%, with an increase of about SAR305 billion compared to the previous year. Monthly growth was 1.2%, or SAR33 billion, from July's figure of SAR2.79 trillion.

The credit extended to both public and private sectors is spread across more than 17 economic activities. This distribution supports comprehensive and sustainable economic growth, aligning with the objectives of Saudi Vision 2030. Since January, bank credit has grown by over SAR203 billion, starting from SAR2.6 trillion at the year's beginning.

Long-term bank credit, defined as loans exceeding three years, made up 47% of total credit by August's end. This amounted to approximately SAR1.3 trillion, reflecting an annual growth rate of 8.7%. Compared to the same period in 2023, this represents an increase of over SAR106 billion from SAR1.2 trillion.

Short-term bank credit, which is less than a year in duration, accounted for 38% of total credit. By August's end, it reached around SAR1.07 trillion, marking a 14% annual growth rate compared to SAR943 billion in 2023. This indicates a rise exceeding SAR131 billion.

Medium-term bank credit, spanning one to three years, constituted 15% of total credit by August's end. It amounted to approximately SAR426 billion, showing an annual growth rate of 19%. This is an increase of more than SAR67 billion compared to the same period last year when it was SAR358 billion.

The overall distribution and growth in bank credit play a crucial role in supporting economic activities and achieving national goals under Saudi Vision 2030.

With inputs from SPA