Report Overview

Saudi Arabia Corporate Lending Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Corporate Lending Market size was estimated at USD 288.46 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Corporate Lending Market size is projected to grow at a CAGR of 10.10% reaching a value of USD 565.72 billion by 2031. Prominent drivers of the market include economic conditions, interest rates, regulatory policies, and technological advancements. Economic growth and stability influence borrowing needs, while interest rates affect the cost of borrowing for corporations. Regulatory policies, such as capital adequacy requirements, shape lending practices, and risk management strategies. Also, technological advancements, like digital platforms and blockchain, are transforming lending processes, enhancing efficiency, and expanding Saudi Arabia Corporate Lending Market.

Corporate lending – Overview

Corporate lending involves financial institutions providing loans to businesses to finance their operations, expansion, or other capital needs. These loans are typically tailored to the specific requirements and creditworthiness of the borrower, with terms such as interest rates, repayment schedules, and collateral arrangements negotiated between the lender and the borrower. The loans can be secured or unsecured, with secured loans requiring collateral to mitigate the lender's risk. Corporate lending is crucial for businesses to manage their cash flow, invest in growth opportunities, or navigate through challenging financial periods, playing a significant role in stimulating economic activity and business development.

Saudi Arabia Corporate Lending Market

Growth Drivers

Increasing Demand for Capital from Corporate Houses

Businesses are leading to significant growth in Saudi Arabia Corporate Lending Market. The rise is fueled by factors like post-pandemic recovery plans, infrastructure investments, and a growing appetite for mergers and acquisitions. As companies seek capital to expand, innovate, and navigate a dynamic economic landscape, they are turning to lenders for vital financial support. An increasing demand for loans creates fertile ground for the significant growth of Saudi Arabia Corporate Lending Market.

Challenges

Rising Risk of Non-Performing Loans

The rapid expansion of commercial bank lending in Saudi Arabia has raised concerns about a possible rise in non-performing loans (NPLs). As banks extend credit at a fast pace-driven by strong demand from businesses and government-backed economic initiatives-there is a risk that some borrowers may struggle to meet their repayment obligations, particularly if their businesses face unexpected challenges or if the broader economy slows down. Consequently, NPLs could affect the growth of Saudi Arabia Corporate Lending Market.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Corporate Lending Market

Intensifying geopolitical tensions among countries across the Middle East are reshaping Saudi Arabia Corporate Lending Market by increasing economic uncertainty, disrupting trade routes, and heightening market volatility. When regional or global tensions rise, such as conflicts involving key players in the Middle East, banks and corporate borrowers face greater risks related to supply chain disruptions, asset security, and fluctuating commodity prices-especially oil, which remains a cornerstone of the Saudi economy. Uncertainties could lead to more conservative lending practices by banks, as they reassess credit risk and tighten lending standards to protect asset quality.

Saudi Arabia Corporate Lending Market

Segmental Coverage

Saudi Arabia Corporate Lending Market – By Loan Product

Saudi Arabia Corporate Lending Market by loan product is segmented into Term Loans, Revolving Lines of Credit, and Project Finance segments. The project finance segment is the largest loan product due to its integral role in funding large-scale ventures. Project finance facilitates investment in extensive infrastructure projects, such as energy, transportation, and construction initiatives. Its significance lies in providing long-term funding tailored to the specific needs and risks of each project, attracting substantial capital from investors worldwide. The segment's complexity and scope make it a cornerstone of corporate lending, driving growth and innovation across various industries.

Saudi Arabia Corporate Lending Market – By Lender Type

Based on lender type, Saudi Arabia Corporate Lending Market is segmented into Commercial Banks, Shadow Banks, and Alternative Lenders segments. The commercial banks segment typically represents the largest lender type in Saudi Arabia Corporate Lending Market. They are established financial institutions with extensive networks, offering a wide range of services to corporations. Commercial banks are often preferred by businesses due to their stability, accessibility, and diverse financial products tailored to corporate needs. Their vast resources, regulatory oversight, and longstanding reputation in the financial industry contribute to their prominence in the corporate lending market, making them the primary choice for many businesses seeking financing solutions.

Saudi Arabia Corporate Lending Market - By Borrower Type

On the basis of borrower type, Saudi Arabia Corporate Lending Market is split into Large Enterprises and Small & Medium-sized Enterprises (SMEs) segments. Large enterprises dominate the market by borrower type, encompassing corporations with substantial scale, resources, and operational complexity. Large entities often require sizable financial assistance for expansion, mergers, acquisitions, or capital-intensive projects. Conversely, SMEs represent smaller businesses that typically have more limited resources and financing needs compared to their larger counterparts. While both segments are integral to the corporate lending landscape, large enterprises often command a significant share due to their broader scope and scale of operations.

Saudi Arabia Corporate Lending Market – By Loan Purpose

Saudi Arabia Corporate Lending Market by loan purpose is segmented into Working Capital, Expansion, and Debt Refinancing segments. The working capital segment typically stands out as the largest loan purpose in Saudi Arabia Corporate Lending Market. The segment focuses on providing financing to cover day-to-day operational expenses and short-term liabilities for businesses. It serves as a vital lifeline for companies to manage their cash flow, inventory, and other operational needs efficiently. With businesses constantly requiring liquidity to sustain and grow their operations, the working capital segment often commands a significant portion of the corporate lending market, reflecting its essential role in supporting business continuity and growth strategies.

Competitive Landscape

Major players operating in the highly competitive Saudi Arabia Corporate Lending Market include Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, Samba Financial Group, Arab National Bank, Saudi British Bank, The Saudi Investment Bank, Bank Aljazira, and Alinma Bank. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2025 - Saudi Bank’s lending hit SAR 3.1 trillion (USD 827.2 billion), marking a 16.26% year-on-year increase-the fastest pace in over 3.5 years. Corporate lending now accounts for 55.19% of total bank credit, up from 52.46% a year earlier.

Scope of the Report

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By Loan Product

• Term Loans

• Revolving Lines of Credit

• Project Finance

By Lender Type

• Commercial Banks

• Shadow Banks

• Alternative Lenders

By Borrower Type

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

By Loan Purpose

• Working Capital

• Expansion

• Debt Refinancing

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Corporate Lending Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing demand for capital from businesses
         2. Growth of emerging markets
         3. Digitalization of lending platforms
         4. Low interest rates  
      2. Restraints
         1. Economic uncertainty
         2. Rising interest rates
         3. Increasing regulatory scrutiny   
      3. Opportunities
         1. Alternative lending
         2. Data-driven lending
         3. Green lending
      4. Challenges
         1. Competition
         2. Cybersecurity threats
         3. Credit risk management
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Corporate Lending Market: Marketing Strategies
5. Saudi Arabia Corporate Lending Market: Pricing Analysis
6. Saudi Arabia Corporate Lending Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Loan Products
         1. Term Loans
         2. Revolving Lines of Credit
         3. Project Finance
      2. By Lendor Type
         1. Commercial Banks
         2. Shadow Banks
         3. Alternative Lenders
      3. By Borrower Type
         1. Large Enterprises
         2. Small and Medium-sized Enterprises (SMEs)
      4.   By Loan Purpose
         1. Working Capital
         2. Expansion
         3. Debt Refinancing
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Corporate Lending Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Corporate Lending Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Saudi National Bank (SNB)
   2. Al Rajhi Bank
   3. Riyad Bank
   4. Samba Financial Group
   5. Arab National Bank
   6. Saudi British Bank
   7. The Saudi Investment Bank
   8. Bank Aljazira
   9. Alinma Bank
   10. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Corporate Lending Market Segmentation

Figure 2       Saudi Arabia Corporate Lending Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       Saudi Arabia Corporate Lending Market Size, By Value (USD Billion), 2019–2031

Figure 5       Saudi Arabia Corporate Lending Market Share, By Loan Product, By Value, 2019–2031

Figure 6       Saudi Arabia Corporate Lending Market Share, By Lender Type, By Value, 2019–2031

Figure 7       Saudi Arabia Corporate Lending Market Share, By Borrower Type, By Value, 2019–2031

Figure 8       Saudi Arabia Corporate Lending Market Share, By Loan Purpose, By Value, 2019–2031

List of Tables

Table 1        Saudi Arabia Corporate Lending Market Size, By Value (USD Billion), 2019–2031

Table 2        Saudi Arabia Corporate Lending Market Size, By Loan Product, By Value, 2019–2031

Table 3        Saudi Arabia Corporate Lending Market Size, By Lender Type, By Value, 2019–2031

Table 4        Saudi Arabia Corporate Lending Market Size, By Borrower Type, By Value, 2019–2031

Table 5        Saudi Arabia Corporate Lending Market Share, By Loan Purpose, By Value, 2019–2031

Table 6      Saudi National Bank (SNB) Company Overview

Table 7        Saudi National Bank (SNB) Financial Overview

Table 8        Al Rajhi Bank Company Overview

Table 9        Al Rajhi Bank Financial Overview

Table 10      Riyad Bank Company Overview

Table 11      Riyad Bank Financial Overview

Table 12      Samba Financial Group Company Overview

Table 13      Samba Financial Group Financial Overview

Table 14      Arab National Bank Company Overview

Table 15      Arab National Bank Financial Overview

Table 16      Saudi British Bank Company Overview

Table 17      Saudi British Bank Financial Overview

Table 18      The Saudi Investment Bank Company Overview

Table 19      The Saudi Investment Bank Financial Overview

Table 20      Bank Aljazira Company Overview

Table 21      Bank Aljazira Financial Overview

Table 22      Alinma Bank Company Overview

Table 23      Alinma Bank Financial Overview