Fitch ratings agency acknowledged the high credit ratings of Saudi banks, with financial indicators showing they are less sensitive to economic downturns compared to most banks in Gulf Cooperation Council countries.
“Saudi Arabia’s business environment is considered good, as evidenced by its (bbb+) rating, the highest among Gulf Cooperation Council countries,” the agency said in a statement.
He noted that this classification is based on continued increases in government spending within the framework of Vision 2030, continued economic diversification, non-oil growth, and progress on mega-projects.
strong growth
The report said Saudi Arabian banks have grown at about twice the average rate in Gulf Cooperation Council countries since the start of the pandemic, and are expected to maintain a high annual growth rate of about 13% in 2025, but decline to between 10% and 11% in 2026.
The report shows that this slowdown reflects the natural saturation of credit due to years of rapid expansion and increased funding competition, resulting in average funding costs for the sector rising by 30 basis points in the third quarter of 2025 compared to 2024.
Excellent liquidity
The agency indicated that it still considers funding and liquidity to be one of the strengths of Saudi banks’ credit ratings, and expects this to continue in 2026, but notes that banks maintain large liquidity reserves and strong access to diverse funding sources, which underpins their ability to withstand slower growth and increasingly competitive deposit markets.
Fitch Ratings has affirmed the Saudi bank’s strong credit rating, with financial indicators showing it is less affected by the economic contraction than most of its peers in the Gulf Cooperation Council countries.
“Saudi Arabia’s business environment is favorable, as evidenced by its (bbb+) rating, the highest among Gulf Cooperation Council countries,” the agency said in a statement.
The rating is based on continued increases in government spending under Vision 2030, continued economic diversification and non-oil growth, in addition to progress on mega-projects, it noted.
strong growth
The report notes that since the start of the pandemic, Saudi banks have experienced growth that is almost twice the average growth rate of GCC countries, and expects annual growth to remain steady at around 13% in 2025, but decline to between 10% and 11% in 2026.
The report shows that this slowdown reflects the natural saturation of credit due to years of rapid expansion and increased funding competition, which led to average funding costs for the sector rising by 30 basis points in the third quarter of 2025 compared to 2024.
significant liquidity
The agency considers that capital and liquidity remain strong in Saudi banks’ credit ratings and expects this to continue in 2026, while noting that banks maintain large liquidity reserves and strong access to diverse funding sources, which supports their ability to withstand slower growth and increasingly competitive deposit markets.
