Key facts
- Saudi commercial banks' claims on the private sector grew 7.2% year-on-year to SAR 3.23 trillion in April.
- Personal bank loans and trade loans were the primary drivers of credit growth.
- Lending to the real estate sector has weakened.
- Investor confidence and business optimism rebounded in April.
- Credit growth outpaced deposit growth, leading to tighter liquidity.
Saudi commercial banks saw their claims on the private sector increase by 7.2% year-on-year, reaching SAR 3.23 trillion by the end of April. This expansion was primarily fueled by growth in personal bank loans and trade finance, while lending to the real estate sector experienced a slowdown. The rebound in investor confidence and business optimism observed in April coincided with this credit growth. However, the pace of credit expansion outstripped deposit growth, resulting in tighter liquidity conditions within the banking system.