The total assets of the Saudi banking sector reached approximately 4.96 trillion riyals by the end of 2025, reflecting rapid expansion in the kingdom's financial landscape. According to a recent report from Al Rajhi Bank, total banking credit in the kingdom rose to 3.30 trillion riyals by the end of the year. Strong demand for institutional financing related to infrastructure and development projects contributed to this remarkable growth.
The report indicated that levels of deposits and banking liquidity remained within safe limits, while capital reserves continued to exceed regulatory requirements by a comfortable margin. Credit growth outpaced deposit growth, with the banking sector playing a pivotal role in financing a wide range of economic activities, including real estate development, trade, industry, and utilities.
Event Details
The report also highlights the central role of the Saudi Central Bank (SAMA) in maintaining financial stability, alongside the Financial Sector Development Program that has enhanced the competitiveness, resilience, and sustainability of the banking system. The financial sector in the kingdom witnessed significant progress in 2025, with enhanced cooperation between banks and fintech companies within a supportive regulatory framework.
By the end of the year, the number of fintech companies exceeded 280, operating under the supervision and support of the Saudi Central Bank and the Capital Market Authority. Banks, in collaboration with startups, successfully developed innovative services including digital payments, integrated financing, buy now pay later solutions, peer-to-peer lending, and API platforms.
Background & Context
Vision 2030 is one of the key pillars that the kingdom aims to achieve, aiming to diversify the economy and reduce dependence on oil. Major projects have contributed to boosting demand for institutional financing, leading to an increase in bank assets. Historically, the kingdom has witnessed significant transformations in its financial system, with numerous reforms introduced to enhance transparency and efficiency.
Moreover, the digital transformation in the financial sector is part of the kingdom's strategy, aiming to improve the level of financial services provided to citizens and residents. This transformation reflects the global trend towards innovation in financial services.
Impact & Consequences
The effects of this growth in the banking sector extend beyond the kingdom, reflecting the strength of the Saudi economy and its ability to attract investments. Additionally, the increase in banking credit means more opportunities for businesses and small to medium enterprises, further enhancing economic growth.
Furthermore, the collaboration between banks and fintech companies reflects a shift in how financial services are delivered, contributing to enhanced financial inclusion and increased access to financial services for individuals and businesses.
Regional Significance
The Saudi experience in developing the financial sector serves as a model for the Arab region, where other countries can benefit from the lessons learned from this growth. Additionally, cooperation between the public and private sectors in the kingdom can encourage the development of more resilient financial systems in neighboring countries.
In conclusion, the continuous growth in the Saudi banking sector reflects the kingdom's commitment to achieving its economic goals, contributing to enhanced financial stability in the region.