Saudi Arabia’s banking sector continued to expand in June, with total bank credit rising 7.3 percent year on year to SR3.42 trillion ($912 billion) and overall bank deposits increasing 8.9 percent to SR3.13 trillion, official data showed.
According to the latest data from the Saudi Central Bank, broad money supply climbed 8.4 percent year on year to SR3.38 trillion, pointing to continued growth in banking-sector liquidity and lending.
The figures, comparing June 2026 with June 2025, showed that credit to both the private and public sectors increased during the period.
The latest data adds to a broader picture of Saudi Arabia’s economic transformation, with banking-sector activity and reserve assets highlighting the Kingdom’s liquidity, financial stability and confidence in its economy.
Bank credit classified by maturity reached SR3.419 trillion at the end of June, up from SR3.186 trillion a year earlier. The increase was driven by higher long-term and short-term lending. Long-term credit rose to SR1.64 trillion from SR1.56 trillion, while short-term credit increased to SR1.31 trillion from SR1.14 trillion. Medium-term credit, however, edged down to SR475 billion from SR490 billion.
“The June SAMA data points to a banking sector that continues to expand despite a restrictive global monetary policy environment,” Ahmad Chreim, economist at MT Trading, told Arab News.
“Strong credit growth alongside a 25 percent rise in time and savings deposits suggests customers are locking in higher yields while interest rates remain elevated globally,” he added.
Chreim added that the 16 percent increase in foreign securities holdings indicates SAMA is actively managing its reserve portfolio to generate stronger returns, reinforcing the Kingdom’s external buffers as it continues financing Vision 2030 projects.
Banks’ claims on the private sector rose 6.8 percent to SR3.27 trillion in June from SR3.06 trillion a year earlier. At the same time, claims on the public sector increased 7.8 percent to SR930.1 billion from SR863.2 billion.
The expansion in credit coincided with a notable shift in the composition of deposits. Time and savings deposits surged 25 percent year on year to SR1.375 trillion in June, compared with SR1.1 trillion a year earlier. Demand deposits, by contrast, fell 3.2 percent to SR1.447 trillion from SR1.495 trillion.
Separate data from the Saudi Central Bank showed the Kingdom’s reserve assets rose 8.1 percent year on year to SR1.85 trillion in June, up from SR1.72 trillion a year earlier.
The increase, equivalent to about SR138.3 billion, was driven primarily by a sharp rise in foreign securities holdings, which climbed 16 percent to SR1.11 trillion from SR959.4 billion in June 2025.
Foreign currency and deposits abroad, the second-largest component of the Kingdom’s reserves, stood at SR647.6 billion in June, down 2 percent from SR660.6 billion a year earlier.
Special Drawing Rights held by Saudi Arabia fell 3.3 percent to SR78.6 billion, while the Kingdom’s reserve position at the International Monetary Fund edged down 0.4 percent to SR13.2 billion. Monetary gold holdings were unchanged at SR1.62 billion.
Reserve assets increased from the previous month to SR1.85 trillion in June from SR1.83 trillion in May. June’s level was, however, slightly below the SR1.86 trillion recorded at the end of the first quarter.
The latest figures underscore the continued strength of Saudi Arabia’s external reserve position, with foreign securities accounting for the bulk of the increase over the past year.
