https://arab.news/byqbw
RIYADH: Saudi Arabia’s finance companies have seen their collective portfolios surge 10.8 percent to reach SR75.45 billion ($20 billion), according to the latest figures released by the Saudi Central Bank.
Growth occurred across most indicators at varying rates in 2022 — the period covered by the report — with the total assets of the sector rising by 6.5 percent to SR57.02 billion.
Net income also rose by 3.3 percent in 2022, reaching SR1.86 billion, according to the annual report by the bank, also known as SAMA.
As for the firms’ paid-up share capital, it amounted to SR14.64 billion by the end of last year, showing a slight rise of 0.6 percent.
Finance portfolios comprise a wide range of investments including stocks, bonds, commodities, cash, and cash equivalents.
According to SAMA, the retail sector made up the largest portion of loan portfolios at 76 percent, followed by micro, small and medium enterprises at 21 percent, and corporate at 3 percent.
In May, Saudi Arabia’s business sector also saw a boom across most segments, showed the latest data.
In turn, banks extended loans, overdrafts and lines of credit to companies seeking to invest in their projects, purchase capital goods and expand operations.
Out of the 16 business segments of the National Classification of Economic Activities, 15 registered an annual increase in bank credit for May. The only segment that witnessed a dip was agriculture, forestry and fishing, which fell by 8.06 percent.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion in May, from SR3.35 billion in the same month last year, reported SAMA.
The central banks’ May monthly report revealed that the segment also recorded a 21 percent increase in bank credit compared to SR4.11 billion in April.
It encompasses a wide range of professional services, including legal and accounting, architectural and engineering, technical tests and analysis, and research and development in scientific fields.
The Kingdom has seen significant growth in the segment, with state-run institutions such as the Research Development and Innovation Authority collaborating with the private sector to promote innovation and entrepreneurship.
The sector is also set to play a crucial role in the Kingdom’s Vision 2030 diversification strategy that aims to reduce dependence on oil revenues and develop a knowledge-based economy, with German research platform Statista projecting it to reach $8.5 billion in 2024.