Saudi Arabia’s banking sector continued to expand in July 2026, with total assets reaching SAR 5.75 trillion ($1.5 trillion), according to the latest data from the Saudi Central Bank (SAMA). This was a 0.27% increase from SAR 5.73 trillion in June and a 6.71% rise from SAR 5.38 trillion in July 2025. The figures show the continued scale and strength of Saudi Arabia’s banking system as the country increases investment in businesses, housing, infrastructure and other areas linked to its wider economic transformation.
Private-sector lending remains a key driver
Private-sector lending was an important part of this growth. Banks’ claims on the private sector reached SAR 3.266 trillion in July, making it the largest component of the banking system’s balance sheet. Lending to the government also increased by 0.48% month on month to SAR 670.9 billion, while claims on non-financial public enterprises rose by 4.33% to SAR 273.7 billion. These figures point to continued demand for bank financing from both businesses and public-sector projects.
This lending growth is closely linked to Saudi Arabia’s Vision 2030 programme, which is driving investment across sectors such as tourism, logistics, housing, technology and industry. Analysts have said that Vision 2030 projects and greater financing for small and medium-sized enterprises are expected to remain important sources of loan growth for Saudi banks.
Deposits and funding present a challenge
The expansion also highlights a key challenge for the banking sector: funding the rapid growth in lending. Saudi banks have increasingly turned to international markets as loan growth has outpaced the growth of domestic deposits. In 2025, Saudi banks raised a record $33 billion from international markets, while the loan-to-deposit ratio of the largest banks approached 106% by the middle of the year.
At the same time, July data showed that time and savings deposits increased by 1.73% to SAR 1.39 trillion, although government deposits declined sharply. The balance between lending, deposits and external funding will therefore remain important as banks continue supporting investment across the Saudi economy.
Strong capital supports continued growth
Despite these funding pressures, the sector remains well capitalised. SAMA reported a capital adequacy ratio of 19.6% in 2024, comfortably above regulatory requirements, while return on equity reached 15%. The central bank has also maintained a focus on financial stability as banks expand their role in financing the Kingdom’s economic transformation.
Saudi Arabia’s Financial Sector Development Programme is designed to strengthen the role of financial institutions in supporting private-sector growth, while also encouraging fintech, digital banking and greater competition. The programme forms part of Vision 2030 and aims to create a larger and more advanced financial system.
The 6.71% year-on-year increase shows that the sector continues to grow even as banks face higher funding needs and a changing economic environment. The next stage will be about maintaining this growth while protecting capital, managing liquidity and ensuring that lending continues to support productive parts of the Saudi economy.
