Samer Choucair: SAR 3.42 Trillion in Bank Credit Is Redrawing Saudi Arabia’s Investment Map
Investment leader Samer Choucair believes continued growth in bank credit in Saudi Arabia reflects expanding demand for financing and the banking sector’s role in supporting economic activity and diversification projects. At the same time, he emphasized that the next phase will require directing capital toward activities capable of generating sustainable cash flows.
Data for June 2026 showed that total bank credit in Saudi Arabia reached approximately SAR 3.42 trillion at the end of the month, compared with around SAR 3.19 trillion a year earlier, representing annual growth of 7.3%. Credit extended to the private sector increased by 7% to approximately SAR 3.266 trillion.
Choucair said: “Credit growth at these levels confirms continued demand for financing, but for institutional investors it represents more than simply an indicator of banking-sector strength. It reveals the direction in which capital is moving toward the sectors and activities driving economic growth.”
Choucair noted that continued bank financing for the private sector provides an important foundation for projects in manufacturing, infrastructure, logistics, energy, tourism, and technology—sectors directly linked to Saudi Arabia’s economic diversification under Vision 2030.
He added that monetary conditions remain an important factor in investment decisions. The Saudi Central Bank has kept its repo rate at 4.25% and its reverse repo rate at 3.75% since December 2025.
According to Choucair, differing performance among listed equities does not necessarily conflict with strong credit growth. Instead, it reflects a selective repricing process in which investors are seeking companies with strong balance sheets, visible revenues, and the ability to convert financing into sustainable growth and earnings.
He emphasized: “The current phase does not call for indiscriminately increasing market exposure. It calls for selecting assets that combine balance-sheet quality, debt-servicing capacity, and the ability to benefit from long-term investment spending.”
Choucair added that financial services, advanced manufacturing, logistics, energy, and technology could benefit from the continued financing cycle, while investors should closely monitor asset quality, default rates, and borrowing costs.
Choucair concluded: “The real investment opportunity emerges when credit growth translates into higher productivity and sustainable cash flows. Capital allocation in Saudi Arabia in the next phase will therefore depend on distinguishing growth supported by strong fundamentals from growth driven merely by increased borrowing.”