Saudi MSME lending hits SAR 489B, up 28% in Q1

Credit facilities to Saudi micro, small and medium enterprises rose 28% year-on-year to SAR 489.2 billion in the first quarter, central bank data showed. The figure marks the latest milestone in a push to expand private-sector lending under Vision 2030.

Banks and other lenders have steadily increased exposure to the segment as the government encourages financing for smaller businesses to diversify the economy away from oil. The 28% growth rate outpaced overall credit expansion in the kingdom over the same period.

Saudi Arabia's banking sector has posted strong loan growth across segments in recent quarters, supported by high oil revenue and government spending programs. MSME lending remains a policy priority, with the Saudi Central Bank – SAMA – tracking the figures as part of broader financial inclusion targets.

The SAR 489.2 billion total covers facilities extended through both conventional and Islamic instruments, the data showed. No breakdown by sector or loan size was provided in the release.