RIYADH: Saudi Arabia’s financial sector aims to increase the total assets of the banking sector to over SR4.5 trillion ($1.2 trillion) by 2030, the Kingdom’s Minister of Finance said.
During his speech on the occasion of the 92nd National Day, Mohammed bin Abdullah Al-Jadaan added that the total banking assets amounted to SR3.5 trillion by the end of the second quarter of 2022, according to Asharq Alawsat.
He noted that the growing strength of the Saudi economy reflects the solidness of financial policies, and its ability to adapt in the face of challenges.
He praised the results achieved by the Financial Sector Development Program, the Financial Sustainability Program and the National Center for Privatization Program.
The Financial Sector Development Program has increased the number of bodies that are effective in financial technology to over 120 companies until September 2022, he explained.
With regards to the Financial Sustainability Program, the minister noted that it contributed to carrying out many structural reforms.
This is in addition to contributing to raising growth and employment rates, and maintaining financial sustainability, through which financial and economic stability would be achieved, he added.
Speaking of the privatization program, Al-Jadaan explained it contributed to strengthening the partnership between the public and private sectors.
He added that the National Center for Privatization Program has contributed to setting the general frameworks for the privatization system.
In August, Saudi Arabia’s banking sector showed its continuation to outperform its regional counterparts in 2021, with assets growing by a record 10 percent to SR3.3 trillion, according to a report by The Banker.
The Banker’s Top 100 Arab Banks ranking showed that Saudi lenders’ combined Tier 1 capital base is higher than any other country in the region.
The ranking was issued for the year 2022 and data used for the listing pertained to 2021.
While higher oil prices helped economic growth in the Kingdom recover to 3.1 percent in 2021, up from a 4.1 percent contraction the previous year, it is the country’s booming mortgage market — fueled by government initiatives to help Saudi nationals acquire a property — that continues to boost banks’ balance sheets.