Bank loans granted by Saudi commercial banks to the private sector and non-financial government entities (NFGEs) registered a 7% year-on-year growth by the end of July. According to official data released by the Saudi Central Bank (SAMA), total outstanding credit reached SAR 3.54 trillion, up from approximately SAR 3.32 trillion recorded in the corresponding month of the previous year. The private sector continued to dominate credit distribution, absorbing over 92% of the total loan portfolio, while NFGEs accounted for the remaining 8%. This continuous expansion in bank lending highlights the ongoing vitality of corporate and consumer economic activities within Saudi Arabia. Solid credit demand reflects sustained private investment and funding requirements for key commercial projects, aligning with the Kingdom's broader economic diversification program under Vision 2030. For regional equity markets and banking sector analysts, stable credit growth underpins robust commercial bank profitability and liquidity across local financial institutions. Moving forward, analysts will continue to monitor monthly SAMA credit bulletins to assess overall banking sector health and interest margin trends. Sustained credit demand across private industries indicates resilient domestic consumption, which remains crucial for non-oil GDP performance. Market participants will watch for future monetary policy adjustments and credit growth figures to gauge corporate capital expenditure trends in upcoming quarters.
