Saudi Gazette report

RIYADH — The share of non-oil activities in overall gross domestic product (GDP) of Saudi Arabia recorded a growth of 4.4 percent, reaching 49.9 percent during the year 2023. This was revealed in the Financial Stability Report 2024, released by the Saudi Central Bank (SAMA).

The report highlighted the national and global trends and significant developments in the Saudi financial system. The report affirmed that the Saudi economy has proved resilient in 2023, supported by a robust financial sector, despite global economic uncertainties, SAMA said in a press release.

The report highlighted the Kingdom's significant progress toward achieving the ambitious objectives of Vision 2030, which aims to diversify the economy. Such efforts increased the share of non-oil activities in overall GDP to 49.9 percent.

In 2023, the Saudi banking sector remained well-capitalized, with a capital adequacy ratio of 20.1 percent. Banks maintain a sufficient lending capacity to support the Kingdom's economic development, as banking credit continued to grow in 2023, driven primarily by corporate credit, which increased 13.2 percent, the SAMA report pointed out.

Furthermore, non-banking financial institutions performed strongly in 2023 as lending by finance companies increased 12.3 percent to reach SR84.7 billion, supporting the notable growth in total assets.

The report also covered SAMA's efforts to enable innovative payment solutions while ensuring a secure environment to mitigate the associated risks. The Financial Stability Report 2024 is available on SAMA's website through the link https://www.sama.gov.sa/en-us/economicreports/pages/financialstability.aspx