"Commerce, Electricity, and Industry" Account for SAR 624 Billion of Bank Credit

Total bank credit recorded an annual growth to reach SAR 3,296 billion

The Kingdom continues to cement its position as one of the most stable and resilient economies in the region, supported by "balanced monetary and fiscal policies" that have strengthened the banking sector and enhanced liquidity management efficiency in the economy. The strong performance of monetary indicators during the fourth quarter of 2025 reflects the success of the Saudi Central Bank in managing monetary policy and maintaining financial stability, alongside continued growth in bank credit, an increase in money supply, and enhanced levels of the Kingdom's foreign reserves. The solidity of Saudi banks and their ability to finance economic activities and individuals also confirms continued confidence in the national economy, driven by strong capital adequacy, prudent risk management, and regulatory policies that have enhanced growth sustainability and supported the goals of Saudi Vision 2030. According to the economic report for the fourth quarter, issued by the Ministry of Economy and Planning, the total money supply (M3) rose by 8.4% year-on-year in the fourth quarter of 2025 to reach SAR 3,167 billion. Demand deposits constituted 45.2% of total money supply, while time and savings deposits accounted for 37.1%, other quasi-money deposits 10.1%, and currency in circulation outside banks 7.6%.

This growth in money supply (M3) is attributed to an annual increase in time and savings deposits by 23.6%, while currency in circulation outside banks and other quasi-money deposits rose annually by 5.6% and 5.8%, respectively. In contrast, total demand deposits recorded a slight decline of 0.6% year-on-year.

Total bank credit extended during the fourth quarter of 2025 recorded an annual growth of 11.5%, reaching SAR 3,296 billion. This growth was driven by an increase in credit granted to individuals and real estate activities, which together accounted for 55.4% of total credit, amounting to SAR 1,434 billion and SAR 393 billion, respectively. This growth was bolstered by consumer confidence, strong consumer spending, and the presence of government support programs, making the need for financing stronger than the impact of high interest rates. Additionally, the sectors of "wholesale and retail trade, electricity, gas and water supply, and manufacturing" contributed approximately 6.5%, 6.6%, and 5.9%, respectively, to total credit, with estimated values of SAR 214 billion, SAR 217 billion, and SAR 193 billion, respectively.

Furthermore, the Saudi Central Bank reduced the repo rate twice by 25 basis points each time to 4.25% during the fourth quarter of 2025. This boosted the increase in money supply (M3) over the same period. Interbank liabilities rose to SAR 118.1 billion compared to SAR 113.5 billion in the previous quarter, while the interbank interest rate (SAIBOR) declined during Q4 2025 to 5.02% from 5.37% in the preceding quarter. The Kingdom's reserve assets also recorded annual growth of 5.3% in Q4 2025, reaching SAR 1,725 billion compared to SAR 1,639 billion in the same period last year. This growth is mainly attributed to a 16.2% increase in foreign currency and deposits abroad, which constitute 35.9% of reserves, reaching approximately SAR 619 billion. Special drawing rights rose by 4.6% to about SAR 80.5 billion, and the reserve position at the IMF increased by 6.4%. In contrast, investments in foreign securities recorded a slight decline of 0.4%, while the monetary gold reserve remained stable at SAR 1.6 billion with no significant change.

Financial specialists see that the growth in money supply and bank credit, along with the rise in foreign reserves and the decline in interbank interest rates, reflects the success of the monetary policy led by the Saudi Central Bank in achieving a balance between supporting economic growth and maintaining financial stability, while enhancing banks' ability to finance various sectors efficiently and sustainably.