top of page
  • SAUDI ARABIA BREAKING NEWS

Saudi Central Bank Releases Annual Performance Report for Finance and Real Estate Refinance Sectors


Saudi Central Bank Releases Annual Performance Report for Finance and Real Estate Refinance Sectors


June 11, 2024, Riyadh — The Saudi Central Bank (SAMA) has published the Annual Performance Report for the Saudi Finance and Real Estate Refinance Companies Sector for the year 2023, highlighting significant growth and development across the sectors. As reported by the Saudi Press Agency (SPA), the comprehensive report provides a detailed overview of financial advancements within these critical areas of the Kingdom’s economy.


Key Highlights from the Report:


  1. Increase in Paid-Up Share Capital: The finance companies sector saw a 6 percent rise in paid-up share capital, reaching SAR 15.5 billion. This increase underscores the sector's robust financial foundation and its capacity for sustainable growth.

  2. Expansion of Total Assets: Total assets in the finance companies sector surged by 13 percent, amounting to SAR 64.2 billion. This expansion reflects the sector's enhanced operational capabilities and its growing role in the national economy.

  3. Growth in Finance Portfolio: The total finance portfolio experienced a 12 percent increase, totaling SAR 84.7 billion. This growth indicates a rising demand for financial services and the sector's ability to meet this demand effectively.

  4. Net Income: The finance companies sector reported a net income of SAR 1.7 billion, showcasing its profitability and efficient management practices.

  5. Real Estate Refinance Sector Performance: The total assets of the real estate refinancing sector saw a remarkable 48 percent increase, reaching SAR 31 billion. This significant growth highlights the sector's expanding influence and its critical role in supporting the real estate market.



Loan Portfolio Classification:

  • Retail Sector: Dominated the loan portfolio with a 77 percent share, reflecting strong consumer demand and the sector's focus on retail financing.

  • MSME Sector: Accounted for 20 percent of the loan portfolio, emphasizing the importance of micro, small, and medium enterprises in driving economic diversification and job creation.

  • Corporate Sector: Represented 3 percent of the loan portfolio, indicating a more conservative approach to corporate lending within the sector.


Implications and Outlook: The significant increases in capital, assets, and portfolio size demonstrate the resilience and growth potential of Saudi Arabia’s finance and real estate refinance sectors. The notable rise in the real estate refinancing sector’s assets suggests a robust housing market and increasing investor confidence in real estate investments.


As the Kingdom continues to implement its Vision 2030 economic diversification plan, these sectors are poised to play a crucial role in supporting economic stability and growth. The positive financial performance reported by SAMA underscores the effectiveness of regulatory frameworks and the strategic initiatives aimed at fostering a dynamic and resilient financial ecosystem.


Investors, policymakers, and stakeholders will closely monitor these trends as they seek to capitalize on the opportunities presented by the expanding finance and real estate markets in Saudi Arabia.

Commenti


EDITOR'S CHOICE

bottom of page