<\/p>\n
Saudi Arabia\u2019s banking sector outlook remains stable as stronger non-oil economic growth and solid capital buffers support lending and profitability, Moody\u2019s Ratings said, forecasting continued expansion despite liquidity constraints.\u00a0<\/span><\/p>\n In its latest report, credit rating agency Moody\u2019s said the Kingdom\u2019s non-oil gross domestic product is projected to expand by 4.2 percent this year, up from 3.7 percent recorded in 2025.\u00a0<\/span><\/p>\n In January, S&P Global echoed a similar view, saying banks operating in Saudi Arabia are expected to sustain strong lending growth in 2026, driven by financing demand tied to Vision 2030 projects.\u00a0<\/span><\/p>\n Fitch Ratings also underscored the healthy state of Saudi Arabia\u2019s banking system last month, stating that credit growth and high net interest margins are supporting bank profitability in the Kingdom.\u00a0<\/span><\/p>\n Commenting on the latest report, Ashraf Madani, vice president and senior credit officer at Moody\u2019s Ratings, said: \u201cWe expect credit demand to remain robust, but tight liquidity conditions will continue to limit the sector\u2019s lending capacity.\u201d\u00a0<\/span><\/p>\n Madani added that operating conditions in Saudi Arabia will continue to support banks\u2019 strong asset quality and profitability.\u00a0<\/span><\/p>\n \u201cThe operating environment for banks remains buoyant, underpinned by a forecast increase in non-oil GDP growth, robust solvency and continued progress toward the government\u2019s economic diversification goals,\u201d he added. \u00a0<\/span><\/p>\n Moody\u2019s said authorities in the Kingdom are introducing business-friendly reforms to bolster investment and private sector activity, while implementing key development projects and preparing for major global events.\u00a0<\/span><\/p>\n Saudi Arabia continues to advance reforms including full foreign ownership rights, simplified capital market registration procedures and improved investor protections, which could accelerate credit growth to 8 percent this year.\u00a0<\/span><\/p>\n The report said profitability is expected to remain solid among Saudi banks, supported by sustained loan growth and fee income.\u00a0<\/span><\/p>\n Margins are expected to remain stable despite lower asset yields as banks take advantage of credit demand to widen loan spreads on existing and new lending.\u00a0<\/span><\/p>\n Moody\u2019s expects net income to tangible assets to remain stable at 1.8 percent to 1.9 percent this year.\u00a0<\/span><\/p>\n The report added that Saudi banks benefit from a very high likelihood of government support in the event of any failures.\u00a0<\/span><\/p>\n \u201cWe assume a very high likelihood of government support in the event of a bank failure. This is based on the government\u2019s track record of timely intervention,\u201d Moody\u2019s said. \u00a0<\/span><\/p>\n It added that Saudi Arabia remains the only G-20 country that has not adopted a banking resolution framework. However, it is the only Gulf Cooperation Council member to have introduced a law for systemically important financial institutions.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Saudi Arabia\u2019s banking sector outlook remains stable as stronger non-oil economic growth and solid capital buffers support lending and profitability, Moody\u2019s Ratings said, forecasting continued expansion despite liquidity constraints.\u00a0 In its latest report, credit rating agency Moody\u2019s said the Kingdom\u2019s non-oil gross domestic product is projected to expand by 4.2 percent this year, up from […]<\/p>\n","protected":false},"author":1,"featured_media":5546,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/02\/Saudia-Arabia-22-1000x445.jpg",1000,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/02\/Saudia-Arabia-22-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/02\/Saudia-Arabia-22-300x200.jpg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/02\/Saudia-Arabia-22.jpg",1000,667,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=5545"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5545\/revisions"}],"predecessor-version":[{"id":5547,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5545\/revisions\/5547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/5546"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=5545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=5545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=5545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}