Saudi banks’ real estate lending grows to $161bn in Q1

Analysis Data compiled by Arab News shows a 27.6 percent year-on-year growth in total real estate lending, but the growth rate has slowed in comparison to 44.1 percent in the same period last year.
Data compiled by Arab News shows a 27.6 percent year-on-year growth in total real estate lending, but the growth rate has slowed in comparison to 44.1 percent in the same period last year.
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Updated 04 July 2022

Saudi banks’ real estate lending grows to $161bn in Q1

Saudi banks’ real estate lending grows to $161bn in Q1
  • 79% of the loans were issued to individuals, remaining 21% constituted corporate loans: SAMA

RIYADH: Saudi banks’ real estate lending witnessed a year-on-year increase of SR131 billion ($34.9 billion) to SR605.5 billion in the first quarter of 2022, from SR474.5 during the same period last year, according to latest figures released by the Saudi Central Bank, also known as SAMA.


Data compiled by Arab News shows a 27.6 percent year-on-year growth in total real estate lending, but the growth rate has slowed in comparison to 44.1 percent in the same period last year.


On a quarterly basis, the total loan credit increased by SR36.7 billion, or 6.4 percent in the first quarter of 2022 from SR568.9 billion in the fourth quarter of 2021. The loan credit has grown for the 15th consecutive month. 

In the breakdown of real estate loans — 79 percent of the loans were issued to individuals, and the remaining 21 percent constituted corporate loans.
On an annual basis, the retail segment showed a 33 percent year-on-year increase while corporate loans grew 11 percent.

Additionally, the total value of real estate loans given to individuals witnessed a quarterly growth of 6.8 percent to SR476.2 billion, while corporate loans increased by 5.1 percent over the same period.


Over the past two years, the corporate loans experienced a decline of 10 percentage points in terms of their share in the total real estate lending by Saudi banks. It would be pertinent to mention here that any percentage lost in the corporate sector means a percentage gained in the retail segment.

Regardless, corporate loans seem to be on the rise — as they have grown 3.2 percentage points in this quarter. This is a 5.1 percent growth in the first quarter of 2022 against 1.9 percent growth recorded in the fourth quarter of 2021.

On the other hand, retail loans experienced a slight decline in growth rates, from 8 percent in the last quarter to 6.8 percent growth in the first quarter of 2022.

The outstanding balance of real estate loans provided by Saudi banks rose 6 percent quarter-on-quarter, SAMA data revealed.


NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition
Updated 12 sec ago

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

NRG Matters — Oman aims to produce 3,350MW electricity from renewables by 2027; Malaysian utility expedites energy transition

RIYADH: Oman is planning to boost its daily power production using renewable energy to 3,350 MW by 2027, up from its current 650 MW, according to Oman Daily Observer.

The country also aims to become one of the top 40 countries globally in the environmental performance index. 

Electric vehicle 

China’s Geely Automobile is aiming to increase the proportion of electric vehicles in its total sales to 50 percent in 2023, Reuters reported. 

It is part of the company’s objectives to accelerate its transition to EV production amid weakening demand for petrol-driven cars.

Green hydrogen conference

The Connecting Green Hydrogen MENA 2023 event will be held on March 14-16, 2023, in Palazzo Versace Dubai, according to Trade Arabia. 

The event will include 1,500 policymakers, oil and gas firms, energy utilities, investors, project developers, suppliers, hydrogen mobility and transportation firms.

The conference will focus on future development and prospects of the Middle East and North African region’s hydrogen industry.

Energy transition 

Malaysian utility Tenaga Nasional Bhd is aiming for capital expenditure of about 20 billion ringgit ($4.48 billion) annually till 2050 to fast track its energy transition plans, Reuters reported citing a statement. 

The investments will help Tenaga reach net-zero emissions by 2050 and “open opportunities in more than doubling its earnings before interest and taxes,” said CEO Baharin Din. 


Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 
Updated 24 min 37 sec ago

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

Saudi IT firm Arab Sea plans new Egyptian branch to meet rising demand 

RIYADH: Information technology services provider Saudi Arab Sea Information Systems Co. plans to open a new office in Egypt in order to address the rising demand for its systems.

Based in Riyadh, the company said in a bourse filing that the decision was approved by the company’s board of directors on Aug. 17.

It added that any developments will be announced in due course.

Most recently, Arab Sea reported weak earnings for the first half of 2022, turning into losses of SR5.5 million ($1.33 million) from SR4.4 million in profit a year earlier.

The results were attributed to a year-on-year revenue drop of 22 percent to SR17 million, in addition to higher costs from establishing its unit, Arab Sea Financial Co.


Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses
Updated 32 min 33 sec ago

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

Saudi insurer Enaya seeks capital reduction of $13m to recoup losses

RIYADH: Saudi Enaya Cooperative Insurance Co.’s board proposed a capital reduction of SR50 million ($13 million).

Upon the reduction, the company will increase its capital by SR130 million through a rights issue, bringing the company's capital to SR230 million, the company said in a bourse filing.

Enaya is reducing its capital to amortize its accumulated losses, it said.


Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit
Updated 40 min 20 sec ago

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

RIYADH: Saudi cable manufacturer Aslak has signed a deal with UAE’s A-1 Fence DMCC C0. to acquire a stake in its wholly owned unit based in Dammam.  

Formally known as United Wire Factories Co., the firm revealed in a bourse filing that it will acquire a 30 percent stake of the capital of A-1 Fence Arabia Co. for Industry.

The share purchase agreement is subject to approval from the Kingdom’s General Authority for Competition and relevant regulatory authorities.

This potential deal comes as Aslak aims to diversify its sources of income and maximize profitability through a pool of investments.


Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump
Updated 59 min 57 sec ago

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

RIYADH: Saudi cement producer, Umm Al-Qura Cement Co. has posted a 55 percent decline in net profit during the first half of 2022 owing to lower cement sales.

Profits in the first half dropped from SR49 million in the same period last year to SR22 million ($5.9 million), according to a bourse filing.

The company attributed the decline in net profit to a decrease in sales value and an increase in selling, marketing, and administrative expenses.

Its revenue declined 19 percent to SR125 million during the current period from SR154 million during the previous period.