S&P Global Credit Ratings revealed that the expansionary government budget in the Kingdom of Saudi Arabia will be sufficient to boost the GDP growth to exceed 2% during the years 2020 and 2021.
It also expected the banks operating in KSA to maintain stable levels of financial risk indicators during the year 2020, although growth remains largely dependent on oil market movements and is also linked to global economic conditions and regional geopolitical trends.
According to the agency, mortgage financing will be one of the main drivers of loan growth in the Kingdom, while credit losses will settle at about 70 basis points, while growth prospects will remain linked to commodity prices. Credit losses are expected to stabilize with the support of economic stability in the Kingdom and the growth of loans driven by mortgage financing, according to the report, which was viewed by Al Arabiya.
Source (Al-Arabiya.net website, Edited)
