Saudi Arabia’s finance companies have seen a 10.8% surge in their portfolios, reaching $20 billion, as reported by the Saudi Central Bank. In 2022, the sector’s total assets rose by 6.5% to $15.2 billion. Net income also increased by 3.3% to $496 million. The paid-up share capital of these companies slightly rose by 0.6% to $3.9 billion. Finance portfolios include investments such as stocks, bonds, commodities, cash, and cash equivalents.
According to the Saudi Central Bank, the retail sector represents 76% of loan portfolios, followed by micro, small, and medium enterprises at 21%, and corporate at 3%. Saudi Arabia’s business sector experienced growth, and banks provided loans, overdrafts, and credit lines to support investments and expansion.
Out of the 16 business segments, 15 saw an increase in bank credit for May, with only agriculture, forestry, and fishing witnessing a decline of 8.06%. Bank credit to professional, scientific, and technical activities increased by 49.49% to $1.34 billion in May. This segment covers services like legal and accounting, architecture and engineering, technical tests and analysis, and scientific research and development.
Saudi Arabia aims to promote innovation and entrepreneurship through collaboration between state-run institutions and the private sector. The professional, scientific, and technical activities segment is crucial to the country’s Vision 2030 strategy, which seeks to diversify the economy and reduce reliance on oil revenues. Statista projects that this segment will reach $8.5 billion in 2024.