Saudi Finance & Insurance Lead Growth in Q1 2026

Saudi Arabia's finance, insurance and business services sector posted the strongest performance among all economic activities in the first quarter of 2026, recording real growth of 5.4% year-on-year and 1.1% quarter-on-quarter,

The sector's expansion outpaced the wider economy, with Saudi real GDP growing 3.0% year-on-year in the same quarter. Non-oil activities grew 2.9% year-on-year and 0.3% quarter-on-quarter on a seasonally adjusted basis, underlining the growing weight of services in the Kingdom's economy.

Banking indicators reflected the momentum. Broad money and total bank deposits reached around SAR 3,307 billion in Q1 2026, up 8.2% year-on-year, while bank credit climbed to roughly SAR 3,355 billion, also rising 8.2% over the year.

Insurance sector on the rise

The insurance market showed particular strength. Listed insurance companies reported aggregate profits of about SAR 1.87 billion in the first half of 2026, a 24.3% increase compared with the same period in 2025. A new insurance law effective from 2026 is reshaping the market through stronger regulation, higher capital requirements and measures to support market development.

Looking ahead, the Saudi insurance market is projected to double in size by 2030, exceeding SAR 140 billion in premiums, with risk-based capital expected to reach SAR 50 billion and insurance penetration in non-oil GDP targeted at 3.6%.

For residents and businesses, the numbers point to a deepening and more competitive financial services landscape, with wider access to credit, banking and insurance products. No sector-wide fee changes have been reported in connection with this growth performance.

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