抖阴短视频

RIYADH:抖阴短视频鈥檚 efforts toward economic diversification are fueling the growth of its banking sector, with industries such as construction and tourism offering appealing lending opportunities, according to a recent analysis.

In its latest report, the US-based credit rating agency Moody鈥檚 said that the performance of the banking sector鈥檚 loan portfolio has continued to improve, particularly following the rollout of the Kingdom鈥檚 national diversification agenda aimed at reducing dependence on hydrocarbon revenue.

Emphasizing the banking sector鈥檚 growth, the Saudi Central Bank, also known as SAMA, reported that the aggregate profit before zakat and tax of banks operating in the Kingdom reached an unprecedented SR7.83 billion ($2.1 billion) in July, reflecting a 23 percent annual increase.

鈥淲e expect this trend to persist over the coming 12 to 18 months, further boosting the non-hydrocarbon economy where banks largely operate. Saudi borrowers鈥� repayment capacity is also supported by government policies and reforms,鈥� said Lea Hanna, an analyst at Moody鈥檚.

She added: 鈥淪audi banks are enjoying lower delinquencies in their loan portfolios, while provisions cover nonperforming loans fully.鈥�

According to Moody鈥檚, 抖阴短视频鈥檚 real non-hydrocarbon gross domestic product is expected to grow robustly, by approximately 5.5 percent in both 2024 and 2025, driven by government investments in large infrastructure projects that will increase demand for credit during these years.

The agency also highlighted that construction, along with sectors such as tourism and entertainment, will play a vital role in shaping the growth of Saudi banks鈥� loan books.

鈥淎lthough the contribution of giga projects, such as Red Sea and Qiddiyah, to total corporate lending will remain significant, diversification into new sectors, such as tourism, entertainment and renewable energy provide attractive lending opportunities,鈥� said Moody鈥檚.

The report further indicated that lending to small and medium enterprises in 抖阴短视频 has increased, although it still represents a small fraction of the overall sector loan book.

Moody鈥檚 also pointed out potential risks that could impact the asset quality of banks, including a prolonged period of low oil prices and possible changes in government policy.

鈥淭hey (banks in 抖阴短视频) remain exposed to downside risks should there be a reversal in economic momentum or a relaxation in authorities鈥� active support in managing system asset risks,鈥� said Hanna.

In July, another report from Moody鈥檚 stated that Saudi banks are likely to see their client base expand due to government-backed economic diversification efforts that are promoting innovation and boosting productivity in the Kingdom.

The analysis also noted that 抖阴短视频 and Oman were the top two Gulf Cooperation Council countries with the lowest volatility in non-oil sector expansion from 2020 to 2023.