Key facts
- Saudi commercial banks' claims on the private sector reached SAR 3.23tn by end-April, a 7.2% y/y increase.
- Personal loans increased 4% y/y to SAR 1.45tn, while lending for real estate activities rose 10% y/y to SAR 0.41tn.
- Loan growth has outpaced deposit growth, resulting in tighter liquidity with a loans-to-deposits ratio of 104.1% at end-April.
- Saudi banks recorded a 16% y/y profit increase to SAR 103bn in 2025, following a 15% rise in 2024.
- Investor confidence and business optimism rebounded in April after being affected by regional insecurity in March.
Saudi Arabia's banking sector is experiencing robust growth in claims on the private sector, driven by personal and trade loans. This expansion, while indicating economic activity, has led to tighter liquidity conditions as loan growth outpaces deposit increases. The resilience of the banking system is being tested by regional geopolitical tensions, particularly the 'War in Iran', which has impacted business sentiment, though optimism showed signs of recovery in April.