Banking assets in Saudi Arabia will grow at a CAGR of around 18 percent during 2010-2013, RNCOS said Monday in its latest report on "Saudi Arabia Banking Sector Analysis".
Saudi Arabia has one of the largest and fastest growing banking markets in the Middle East. During the last few years, there have been significant changes in the Kingdom’s banking sector. For instance, introduction of new products/services and distribution channels, more banks offering Islamic Banking services, and the opening up of the banking and insurance sector to foreign investors has resulted in various positive changes.
The report said increased demand for consumer and corporate financing in the enhanced economic conditions will fuel the growth in the Kingdom’s banking sector.
Moreover, the Kingdom, in terms of pool of funds, is the largest player in the global Islamic finance market. Strong government involvement and increasing demand for Islamic products have contributed to the growth in the Kingdom’s Islamic banking industry.
The report further showed that the private sector dominates the Kingdom’s banking sector and accounts for the bulk of credit extended as well as deposits received.
Continuous expansion of commerce industry and various industrial sectors including construction and manufacturing and service sector, like transports, accounted for this growth, it added.
source: Saudi Gazette