萝莉视频

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years
The surge was primarily fueled by corporate lending, which rose from 52.46 percent of total bank credit in March 2024 to 55.19 percent this year. Shutterstock
Short Url
Updated 05 May 2025

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

RIYADH: 萝莉视频鈥檚 banking sector continued its robust lending expansion in March, with total credit reaching SR3.1 trillion ($827.2 billion), marking a 16.26 percent year-on-year increase.聽

According to data from the Saudi Central Bank, also known as SAMA, this represents the highest annual rise in three years and eight months.聽

The surge was primarily fueled by corporate lending, which rose from 52.46 percent of total bank credit in March 2024 to 55.19 percent this year. Credit extended to businesses grew by 22.3 percent over this period to exceed SR1.71 trillion.聽

This shift underscores how businesses are now the dominant force shaping 萝莉视频鈥檚 lending landscape, signaling the economy鈥檚 accelerating diversification.聽聽聽聽聽

Real estate activities continued to lead within the corporate loan mix, comprising 22 percent of business lending and growing by an impressive 40.5 percent year-on-year to reach SR374.5 billion.聽

The sector鈥檚 continued expansion reflects heightened demand for housing, commercial infrastructure, and new development projects across the Kingdom鈥檚 mega-cities and giga-projects under Vision 2030.聽

Other key sectors included wholesale and retail trade, which held a 12.43 percent share with SR212.8 billion in lending. Manufacturing accounted for 11.05 percent, with SR189.18 billion in loans. The electricity, gas, and water supply sector comprised 10.6 percent, with loans totaling SR181.43 billion.聽

Each of these areas benefited from increased public and private sector spending and reforms targeting industrial growth and economic resilience.聽

Notably, education 鈥 while accounting for just 0.55 percent of corporate loans 鈥 posted the highest growth rate across all sectors at 44.7 percent, reaching SR9.35 billion. This surge aligns with the Kingdom鈥檚 efforts to expand educational access and upgrade academic infrastructure in line with long-term human capital goals.聽

Financial and insurance activities also showed strong momentum, expanding 38.41 percent to hit SR161.23 billion, ranking third in growth after real estate and education. The rise reflects increased demand for financial services, greater insurance penetration, and fintech integration across key economic sectors.聽

Meanwhile, retail lending stood at SR1.39 trillion in March, growing 9.6 percent year on year. However, its share of total credit declined from 47.54 percent in March 2024 to 44.81 percent this year, reflecting a gradual shift in the banking sector鈥檚 focus from consumer finance to business-driven growth.聽

This moderation in retail lending share comes despite strong performance in personal loans, auto finance, and housing credit, indicating that corporate and commercial financing now command greater attention from lenders responding to market trends and government priorities.聽聽聽

Improved lending quality聽

According to an April 2025 report by McKinsey & Company, the quality of lending in 萝莉视频 has improved across nearly all major sectors. Based on their analysis of expected credit loss versus lending volume from 2020 to 2023, sectors such as services, finance and insurance, and utilities have shown both increased lending and lower credit risk.聽

A key finding in McKinsey鈥檚 data is that financial institutions in 萝莉视频 are increasingly diversifying their portfolios toward sectors with lower ECL growth and higher lending volumes. For example, the services and financial sectors have exhibited strong improvements in lending quality, while construction and agriculture continue to show relatively higher risk levels.聽聽

A bubble chart in the report maps lending volume against changes in ECL, revealing that the Saudi banking sector is pivoting toward sectors with improving credit profiles.聽

Sectors like manufacturing, trade, electricity, and utilities now dominate lending 鈥 not only in volume but also due to their lower risk outlooks. This trend aligns with national efforts to prioritize economic diversification and reduce overexposure to volatile or high-risk sectors.聽

In the Gulf Cooperation Council, construction and trade sectors are growing steadily 鈥 according to McKinsey 鈥 at 5 to 8 percent annually, while real estate is expanding around 8 percent, supported by projects across 萝莉视频 and Qatar. Manufacturing is also gaining traction, bolstered by targeted industrial strategies.聽

Meanwhile, emerging industries such as education, finance, and food services are collectively growing at rates of 20 percent or more annually.聽聽聽

Capital market innovation聽

McKinsey also noted that Saudi banks are transitioning from a traditional 鈥渙riginate-to-hold鈥 model to a more agile 鈥渙riginate-to-distribute,鈥 or OTD, model. This shift enables banks to issue loans and then offload risk through tools like loan trading, securitization, and syndicated deals, freeing up capital for further lending.聽

In a milestone for Saudi financial markets, 2025 saw the signing of the Kingdom鈥檚 first residential mortgage-backed securities. Legal frameworks are being developed to enable more such instruments, providing capital-light financing options and paving the way for a more liquid corporate bond market.聽聽聽

McKinsey projects that OTD volumes in 萝莉视频 could nearly double by 2030, improving banks鈥 return on assets and equity through faster lending cycles and increased fee income. This is expected to enhance financial sector efficiency while supporting large-scale projects through innovative funding channels.聽聽

ESG and digital transformation聽

The report also highlighted the growing role of environmental, social, and governance standards in shaping Saudi lending. With national sustainability agendas in place, many banks are embedding ESG principles into their credit frameworks, including the issuance of green bonds and sustainability-linked loans.聽

At the same time, operational efficiency is improving. Front-office productivity is rising as banks invest in AI-driven analytics, advanced risk modeling, and automation. This not only increases competitiveness but also enables faster, more accurate credit decisions in a dynamic market.聽

The combined effect is a more resilient, innovative, and inclusive lending landscape 鈥 one that supports diversified economic growth while safeguarding financial stability.聽

With credit demand projected to grow by 12 to 14 percent annually through the end of the decade, Saudi banks are expected to maintain strong momentum.聽

Still, McKinsey emphasizes that sustained growth will require banks to boost productivity and embrace operational innovation.聽聽

Some banks have already shown improvement, but the corporate and investment banking sector still has room to optimize client service and internal efficiency.聽

Currently, front-office productivity varies widely among GCC banks. Coverage teams in lagging institutions spend just 20 percent of their time on client-facing activities, compared to 30 percent among industry leaders. McKinsey projects that future top performers will raise that figure to 40 percent by 2030 鈥 a shift that will require significant investment in AI and internal digitization.聽

GCC banks are also closing the gap with global peers in analytics and automation. As these capabilities scale, AI-powered operations are expected to drive faster risk modeling, more responsive lending, and greater agility.聽聽

As the region鈥檚 markets mature and international competition intensifies, CIB institutions must evolve to offer more sophisticated solutions 鈥 such as capital-light lending, securitization, and structured finance.聽

Banks that adapt and build long-term investor relationships will be best positioned to shape the market and capture the most promising opportunities.聽聽


Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says聽

Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says聽
Updated 31 min 39 sec ago

Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says聽

Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says聽
  • Amin Nasser said the oil giant鈥檚 gearing ratio, a financial metric that compares a company鈥檚 debt to its equity, is currently around 5%
  • He reaffirmed the company鈥檚 commitment to maintaining high dividends

RIYADH: Saudi Aramco will continue tapping bond markets in the future despite maintaining one of the lowest gearing ratios in the energy industry, according to a top official. 

In an interview with Bloomberg, Aramco President and CEO Amin Nasser said the oil giant鈥檚 gearing ratio, a financial metric that compares a company鈥檚 debt to its equity, is currently around 5 percent. That鈥檚 significantly lower than the industry average, where many peers operate with levels between 15 and 20 percent.

鈥淥ur gearing today is around 5 percent 鈥 still one of the lowest gearing, you know. It鈥檚 almost half of the average compared to other energy industry players in the market, and we will continue to tap into that additional bond markets in the future,鈥 Nasser said. 

He continued: 鈥淏ut we have a low gearing ratio, which still, as you consider it, is very low compared to any players in the markets.鈥 

The low gearing ratio, which reflects strong financial discipline and limited reliance on debt, is part of what enables Aramco to maintain stability amid market fluctuations. 

Gearing is commonly used by analysts and investors to assess a company鈥檚 financial leverage, with lower ratios often indicating a stronger balance sheet and reduced financial risk. 

In the interview, Nasser also reaffirmed the company鈥檚 commitment to maintaining high dividends. 鈥淲e have a strong balance sheet, and our dividend is one of the highest, the highest globally. We鈥檙e expecting to pay dividends that go to the majority shareholder and other shareholders, which is the government, of $85.4 billion this year.鈥 

He said the company benefits from having spare capacity, which allows it to bring more barrels to the market. 鈥淔or every million barrels, that will have a huge impact on our net income. I would say it will give you a $10 cushion for every million barrels that you put into the market.鈥   

Nasser added: 鈥淲e have today close to 3 million barrels of spare capacity, so other companies do not have that to cushion any drop in prices. For us, we do have that spare capacity that is healthy, strong, and when you put it, it allows you to increase significantly your net income.鈥 

He emphasized the company鈥檚 ability to withstand lower oil prices due to its operational efficiency and robust infrastructure.

鈥淲e are the lowest cost producer. Our extraction cost is $3, and it still is $3. And with low extraction cost, healthy balance sheet, and our investment that is continuing to be capturing opportunities that we have,鈥 Nasser said. 


Closing Bell: Saudi main index closes in red at 10,990聽

Closing Bell: Saudi main index closes in red at 10,990聽
Updated 33 min 3 sec ago

Closing Bell: Saudi main index closes in red at 10,990聽

Closing Bell: Saudi main index closes in red at 10,990聽
  • Parallel market Nomu dropped 123.20 points to close at 26,809.75
  • MSCI Tadawul Index declined by 0.70 percent to 1,403.80

RIYADH: 萝莉视频鈥檚 Tadawul All Share Index slipped on Thursday, as it shed 62.35 points, or 0.56 percent, to close at 10,990.41. 

The total trading turnover of the benchmark index was SR10.20 billion ($2.72 billion), with 169 of the listed stocks advancing and 74 declining. 

The Kingdom鈥檚 parallel market Nomu also dropped 123.20 points to close at 26,809.75. 

The MSCI Tadawul Index declined by 0.70 percent to 1,403.80. 

The best-performing stock on the main market was Saudi Reinsurance Co. The firm鈥檚 share price soared by 9.31 percent to SR50.50. 

The share price of East Pipes Integrated Co. for Industry increased by 7.83 percent to SR124. 

Arabian Drilling Co. also saw its stock price edging up by 5.12 percent to SR84.20. 

Conversely, the share price of Makkah Construction and Development Co. declined by 5.65 percent to SR96.80. 

On the announcements front, Al Moammar Information Systems Co., also known as MIS, said that it signed a contract valued at SR58.93 million with the Saudi Data and Artificial Intelligence Authority to operate and maintain the National Unified Visa Platform.

In a Tadawul statement, the company stated that the contract is valid for 36 months, with no related parties involved in the deal. 

MIS added that the contract is expected to have an impact on the company鈥檚 financial results starting from the third quarter of this year. 

The share price of MIS rose by 1.66 percent to SR134.80. 

Al Kathiri Holding Co. said that its subsidiary, Saraya Al Diyar Investment Co., has entered into a long-term lease agreement valued at SR143.1 million with the Aseer Municipality to build and operate a mixed-use hotel and commercial complex in Abha. 

Under the deal, Saraya Al Diyar Investment Co. will establish a four-star hotel with 180 keys, as well as retail and entertainment facilities in the project that spans a total area of 53,000 sq. meters. 

The new contract is in line with Al Kathiri Holding鈥檚 strategic direction to diversify its investment portfolio and expand into promising, high-impact sectors, aligning with the goals of Saudi Vision 2030, the company said in the statement. 

Al Kathiri Holding Co.鈥檚 share price was unchanged at SR2.08 by the end of Thursday鈥檚 trading. 


萝莉视频鈥檚 Jeddah airport soars to top three in Middle East airport rankings

萝莉视频鈥檚 Jeddah airport soars to top three in Middle East airport rankings
Updated 34 min 2 sec ago

萝莉视频鈥檚 Jeddah airport soars to top three in Middle East airport rankings

萝莉视频鈥檚 Jeddah airport soars to top three in Middle East airport rankings
  • KAIA followed Dubai International Airport and Qatar鈥檚 Hamad International Airport in the regional rankings

JEDDAH: King Abdulaziz International Airport has secured third place in the 2024 Airport Connectivity Index for the Middle East, marking a significant milestone in 萝莉视频鈥檚 ascent as a global aviation hub.

The ranking was announced at the Air Connectivity Conference 2025, held in Shanghai, where the Airports Council International Asia-Pacific and Middle East unveiled its annual index.

KAIA followed Dubai International Airport and Qatar鈥檚 Hamad International Airport in the regional rankings.

This recognition underscores both KAIA鈥檚 growing operational capacity and 萝莉视频鈥檚 broader Vision 2030 goal of transforming the Kingdom into a leading logistics and transportation center. As part of that strategy, 萝莉视频 aims to handle 330 million passengers annually, connect to 250 international destinations, and transport 4.5 million tonnes of cargo by 2030.

Mazen Johar, CEO of Jeddah Airports Co., said the latest ranking reflects the airport鈥檚 progress in expanding its air network and enhancing connectivity.

鈥淭his milestone demonstrates our commitment to operational excellence and aligns with our strategy to establish KAIA as a pivotal global hub,鈥 he said in a statement to SPA.

Johar noted that the airport鈥檚 improved ranking is a result of sustained efforts to boost competitiveness, upgrade infrastructure, and elevate passenger experience in line with national transport goals.

KAIA also held the third spot in the 2023 edition of the index, announced during ACI鈥檚 annual assembly in Riyadh.

As part of its long-term development plans, JEDCO is implementing upgrades aligned with the National Transport and Logistics Strategy. These enhancements aim to increase KAIA鈥檚 passenger capacity to 114 million annually by the end of the decade.

In 2024, KAIA served 49.1 million passengers 鈥 up 14 percent from 2023 鈥 marking the highest annual passenger volume recorded by any airport in the Kingdom. The busiest day was December 31, when over 174,600 passengers passed through the airport. December also set a monthly record, with traffic exceeding 4.7 million passengers.

In the Asia-Pacific rankings, Shanghai Pudong International Airport claimed the top spot, followed by Incheon International Airport in South Korea and Guangzhou Baiyun International Airport. Hong Kong International Airport was recognized as the most improved airport in terms of connectivity across both regions.

Headquartered in Hong Kong with a regional office in Riyadh, ACI Asia-Pacific and Middle East represents airports in some of the world鈥檚 fastest-growing aviation markets. The Airport Connectivity Index鈥 developed with PwC in 2023 and refined in its third edition 鈥 measures network scale, frequency, destination economic weight, and connection efficiency.

According to ACI, air connectivity in the Middle East grew 28 percent year on year, while Asia-Pacific saw a 13 percent increase, reflecting a 14 percent average growth across both regions. These gains signal a robust post-pandemic recovery and the continued momentum of global air travel.


Saudi EXIM Bank targets African markets with 4 new MoUs聽

Saudi EXIM Bank targets African markets with 4 new MoUs聽
Updated 35 min 4 sec ago

Saudi EXIM Bank targets African markets with 4 new MoUs聽

Saudi EXIM Bank targets African markets with 4 new MoUs聽
  • Deals come as Saudi exports to Africa surged 20.6% year on year to SR7.84 billion in March
  • Saudi delegation held in-depth discussions with leaders of several international financial institution

RIYADH: 萝莉视频 is accelerating the expansion of its non-oil exports into African markets, with the Saudi Export-Import Bank securing four new strategic agreements to strengthen trade and investment ties across the continent.  

Saudi Export-Import Bank CEO Saad bin Abdulaziz Al-Khalb signed memoranda of understanding with Africa50, the Ghana Export-Import Bank, Blend International Limited, and Guinea鈥檚 Ministry of Planning and International Cooperation, the Saudi Press Agency reported.  

The deals were finalized on the sidelines of the African Development Bank Group鈥檚 annual meetings, held in Cote d鈥橧voire from May 26 to 30. 

The newly signed deals come as Saudi exports to Africa surged 20.6 percent year on year to SR7.84 billion ($2.09 billion) in March 2025, reflecting growing trade ties between the Kingdom and the continent.  

Al-Khalb said the bank鈥檚 participation in the meetings aims to deepen international trade relations and forge partnerships that support Saudi non-oil export growth in African markets. 

The SPA report added: 鈥淗e stated that the memoranda of understanding are an extension of the bank鈥檚 efforts to promote trade exchange, stimulate development projects, and enable local exporters to export their services and products to African markets through effective and extended partnerships, contributing to supporting sustainable development goals and enhancing economic integration.鈥 

He also described the gathering as a valuable opportunity to boost economic cooperation and engage with officials from export credit agencies and financial institutions across African countries. 

The agreements were signed by Saudi EXIM CEO Saad bin Abdulaziz Al-Khalb, along with Alain Ebobisse, CEO of Africa50; Sylvester Mensah, CEO of the Ghana Export-Import Bank; Ravi Gupta, managing director of Blend International Limited; and Ismail Nabeh, minister of planning and international cooperation of Guinea.

The MoU with Africa50 is aimed at enhancing cooperation in infrastructure projects by partnering with Saudi companies. The agreement with the Ghana Export-Import Bank will focus on exploring cooperation opportunities and enhancing bilateral exports of services and products. 

Meanwhile, the MoU with Blend International Limited is aimed at targeting broader trade opportunities and international partnerships. The deal with Guinea鈥檚 Ministry of Planning and International Cooperation seeks to bolster development projects and investment in priority sectors, enabling Saudi exports of engineering services and industrial supplies. 

Also, on the sidelines of the event, Al-Khalb and his delegation held in-depth discussions with leaders of several international financial institutions, focusing on expanding trade ties and boosting the flow of Saudi non-oil exports into African markets.


Asia鈥檚 first Saudi sukuk ETF launched in Hong Kong

Asia鈥檚 first Saudi sukuk ETF launched in Hong Kong
Updated 37 min 12 sec ago

Asia鈥檚 first Saudi sukuk ETF launched in Hong Kong

Asia鈥檚 first Saudi sukuk ETF launched in Hong Kong
  • Launch coincided with the opening of the Capital Markets Forum
  • ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser

RIYADH: Hong Kong has launched Asia鈥檚 first exchange-traded fund tracking Saudi sovereign sukuk, marking a major development in financial cooperation between East Asia and the Middle East.

The Premia BOCHK 萝莉视频 Government Sukuk ETF, listed on the Hong Kong Stock Exchange, follows the iBoxx Tadawul Government & Agencies Sukuk Index. It includes both riyal- and US dollar-denominated sukuk issued by the Saudi government and related agencies.

The ETF is traded under stock codes 3478 for the Hong Kong dollar counter and 9478 for the US dollar counter. It has been approved by the Securities and Futures Commission of Hong Kong. It offers quarterly US dollar distributions, with fees capped at 0.35 percent and an expected annual tracking difference of around -2 percent.

The launch coincided with the opening of the Capital Markets Forum, a two-day event hosted by Saudi Tadawul Group and Hong Kong Exchanges and Clearing Ltd., aimed at boosting cross-border investment.

This year鈥檚 forum, held under the theme 鈥淧owering Connections,鈥 focuses on strengthening economic and capital market ties between the Middle East and East Asia.

The ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser.

Speaking at the forum, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said the CMF is becoming 鈥渁 leading global platform for collaboration and dialogue on the future of capital markets and economic transformation.鈥

鈥淲e aim to strengthen ties with both local and international investors and to reinforce the Saudi capital market鈥檚 position as a leading global hub, serving as a bridge between capital markets in the East and West,鈥 Al-Rumaih said.

Bonnie Y. Chan,  CEO of Hong Kong Exchanges and Clearing Ltd, said that the partnership with Saudi Tadawul Group underscores the strong ties between the two exchanges.

鈥淭his second edition of the forum will serve as a dynamic platform to connect our broad base of investors and issuers, while encouraging deeper dialogue and collaboration among the capital-raising hubs of Mainland China, Hong Kong, and the Middle East,鈥 Chan said.

The forum featured a series of keynote speeches and panel discussions focused on global economic trends, investment strategies, financial innovation, and the integration of sustainability into financial markets.

As part of the event, the Corporate Access Program enabled direct engagement between investors and senior executives from listed companies and capital market institutions across the region, fostering greater transparency and dialogue.

Commenting on the ETF鈥檚 launch, Faris Al-Ghannam, CEO of HSBC 萝莉视频 said: 鈥淭he corridor between China and 萝莉视频 is becoming even more compelling. The resilient activity in the Kingdom鈥檚 private and capital markets in Q1 reflect 萝莉视频鈥檚 position as a refuge for foreign investors from global volatility. The Kingdom鈥檚 continued liberalization of its foreign investment regulations is also creating new opportunities for investors in Asia and globally.鈥

He said: 鈥淐hinese and 萝莉视频n corporates in sectors such as energy, technology and infrastructure are reinvigorating the Silk Road. We expect this trend to continue as tariff uncertainty persists and corporates double down on managing risks and building resilience in their supply chains.鈥

The launch of the ETF, alongside the Capital Markets Forum, reflects 萝莉视频鈥檚 commitment to elevating its capital markets on the global stage. These efforts align with the Kingdom鈥檚 Vision 2030 strategy to enhance financial sector integration and attract foreign investment.

At the same time, Hong Kong continues to strengthen its role as a vital conduit for capital flows between East and West, reinforcing its position as a leading international financial hub.