S&P Global said, in a report that Saudi Arabia’s banking system is likely ton continue its growth, driven by the strong demand for credit led by dynamic non-oil sector and economic diversification programs.
It expects broad stability in key metrics across GCC banks and banking systems in 2024.
S&P Global also indicated that the Kingdom’s non-oil GDP growth will likely remain dynamic, expecting real GDP growth to accelerate in 2024.
“Liquid assets in some Saudi banks have declined as a share of total assets over the past few years, which we expect will continue as growth remains brisk,” said the agency.
It added that, still, it expects monetary authorities to provide liquidity during tighter periods, particularly where banks are funding strategic projects, including projects aimed at economic diversification or sustainability-related schemes.