Moody’s maintains the outlook for the Saudi banking sector as stable, with a solid operating environment supported by solid financial solvency and growth in the non-oil economy from 3.7% in 2025 to 4.2% in 2026.
The agency predicted credit growth in the kingdom would be around 8% this year, with non-performing loans remaining at a record low of 1.3%. This is accompanied by the government’s commitment to economic diversification and support for the business sector in Vision 2030.
Moody’s indicated that Saudi banks will continue to operate with strict cost controls and high operational efficiency, which will keep provisioning costs low and margin flexibility.
a vital role
Regarding the Gulf banking sector, Moody’s said in a report that government support for banks will be strengthened due to the strength of government financial reserves and continued support. This is because most governments have large stakes in the banking system, increasing their ability to raise funds through stable deposits.
He noted that banks play a vital role in supporting economic diversification strategies in the non-oil sector in line with the vision of governments.
Moody’s maintains a stable outlook for Saudi Arabia’s banking sector, with a strong operating environment supported by solid financial solvency and non-oil economic growth expected to reach 4.2% in 2026 from 3.7% in 2025.
The agency expects credit growth in the kingdom to be around 8% this year, with non-performing loans remaining at a record low of 1.3%. This comes as the government remains committed to economic diversification and supporting the business sector under Vision 2030.
Moody’s indicated that Saudi banks will continue to operate under tight cost controls and high operational efficiency, keeping provisioning costs low while maintaining earnings resilience.
central role
Regarding the Gulf banking sector, Moody’s noted in the report that the strength of government financial reserves and continued support strengthen government support for banks, as most governments hold significant ownership stakes in the banking system and strengthen their funding capacity through stable deposits.
The report noted that banks play a central role in supporting non-oil economic diversification strategies in line with governments’ visions.
