Saudi Arabia’s banking sector experienced a landmark year in 2022. On the back of record economic growth, thanks to the unanticipated oil revenues windfall, profitability metrics rose to above pre-Covid-19 pandemic levels for the first time, due to a combination of surging consumer lending and lower provisioning.
After several years of mortgage-fuelled credit growth, the market has already begun to cool in 2023 as home ownership approaches government targets. Yet corporate lending is set to remain buoyant, thanks to infrastructure upgrades and projects related to the country’s ambitious Vision 2030 economic and social development programme.
