Minister of Economy and Planning: Credit to the Private Sector to Rise to 69% of GDP

Faisal bin Fadel Al-Ibrahim, Minister of Economy and Planning, confirmed that the Financial Sector Development Program achieved significant accomplishments during 2024, contributing to supporting the goals of Saudi Vision 2030, particularly in enhancing non-oil growth and stimulating economic diversification.

In his speech as part of the Financial Sector Development Program’s annual report, Al-Ibrahim explained that the ratio of credit to the private sector to GDP increased from 61% in 2023 to 69% by the end of 2024, reaching approximately SAR 2.75 trillion, recording an annual growth rate of 13%.

SME loans also witnessed a significant increase, with their share of bank financing reaching 8.4% in the fourth quarter of 2024, compared to 6.9% in the same period in 2023, reflecting the program’s effectiveness in empowering this vital sector.

As part of promoting innovation in the financial sector, the implementation of the technology strategy contributed to the development of innovative financial products spanning 261 entities by the end of the year, creating new job opportunities, and increasing the share of electronic payments to 79%.

Al-Ibrahim added that work will continue throughout 2025 to intensify efforts in partnership with relevant entities to increase the diversity of financing solutions and develop the financial market. This will ensure individual empowerment, promote savings, and enhance the efficiency of investment financing, all with the aim of achieving sustainable development that will lead the national economy toward achieving its major goals.

The annual report of the Financial Sector Development Program revealed that 11 of the 18 targeted indicators for 2025 were exceeded by the end of 2024, demonstrating the program’s significant success and the pivotal role it has played in developing the Saudi financial sector, particularly in the field of financial technology, which has positioned the Kingdom as a global leader. According to the report, the share of non-cash transactions reached 79% of total retail payments by the end of 2024, exceeding the 2025 target of 70% and up from 36% in 2016. Saudi banking sector assets also rose to approximately SAR 4.5 trillion, surpassing the 2025 target of SAR 3.5 trillion, up from SAR 2.6 trillion in the 2016 baseline.

Companies operating in the fintech sector also witnessed remarkable growth, with their number rising to 261, exceeding the 2025 target of 230 companies and a three-fold increase compared to the 82 companies in the baseline.

Regarding the Saudi financial market, the report indicated that the market capitalization of the stock market as a percentage of GDP jumped to 86.7%, exceeding the 2025 target of 80.8% and up from 66.5% as a baseline. The number of new listings on the market reached 44 by the end of 2024, exceeding the target of 26 listings and compared to only 6 as a baseline. The percentage of micro and small enterprises of the total listings also increased to 65.9%, compared to 40.9% as a baseline, exceeding the 2025 target of 46%.