According to the most recent official data, the real estate loan portfolios of Saudi banks totaled SR800.5 billion ($213.5 billion) in the first quarter of 2024, a 13 percent rise from the same time the previous year.
According to data made public by the Saudi Central Bank, or SAMA, retail loans accounted for 78% of these loans, with corporate loans making up the remaining 22%.
Even while personal loans make up the majority of bank real estate lending, their yearly growth rate was just 10%, while the corporate sector’s grew at a rate of 26%.
Due to the higher cost of credit, a number of variables, including high interest rates, may have discouraged individual borrowing.
On the other hand, the swift execution of the Kingdom’s massive projects in accordance with Vision 2030 is probably what has caused the corporate real estate loan market to expand so quickly. Due to the huge funding needed for these large-scale projects, corporate loans are in high demand, which is speeding up their growth pace.
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