Saudi Banks: Corporate Lending Drives Growth

Saudi credit growth moderated to ~9.6% entering 2026 after a period of strong credit expansion but remains supported by resilient corporate lending. With ~80% of new loans driven by infrastructure financing and a ~USD 435bn project pipeline, growth is expected to normalize at ~10-11%, reflecting a shift toward a more durable, investment-led cycle. However, tightening liquidity (LDR ~110%) is increasing funding competition, while geopolitical risks and a higher-for-longer rate environment could weigh on credit demand and borrowing costs.