“Moody's” has revealed that the Kingdom's Vision 2030 is a strong catalyst for credit growth, but the most prominent challenges that may face the sector include the failure of deposit growth to keep pace with the rapid growth of credit in Saudi banks.
In a report on the banking sector in Saudi Arabia, the agency indicated that the development of the local market for mortgage-backed securities in the Kingdom could free up some liquidity for the banking services sector.
Mega projects planned to diversify the economy include sectors such as tourism, real estate, and infrastructure, and the government is offering the opportunity for the Kingdom's banks to help them finance these projects.
