Saudi Banks' Net Loans Climb 7% in Q2 2026

Net loans at Saudi Arabia's listed banks rose about 7% year on year in the second quarter of 2026, reaching SR3.25 trillion by the end of the period, in a sign of continued financing activity across the Kingdom's economy.

A banking sector report for the quarter showed net loans and advances up 6.9% year on year, marking single-digit loan growth for the second consecutive quarter. Total bank credit reached roughly SR3.42 trillion in June 2026, an increase of 7.3% compared with a year earlier.

The momentum builds on earlier figures for the year. Bank credit extended to the private and public sectors climbed 8.2% year on year in the first quarter of 2026, while non-oil activities grew 2.9% over the same period.

Why it matters

Steady credit growth is closely tied to the health of the non-oil economy, which continues to expand as part of the Kingdom's broader diversification goals. For residents and business owners in Riyadh, Jeddah and beyond, sustained lending supports company expansion, hiring, and access to financing for homes and projects.

The move to single-digit loan growth for two straight quarters points to a more measured pace of expansion, reflecting a maturing credit market. For the wider community, the figures signal a banking sector that remains active in funding both private enterprise and public initiatives across Saudi Arabia.

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