DUBAI (S&P Global Ratings) April 14, 2022--S&P Global Ratings said today that it expects risks to the stability of Saudi Arabia's banking system to remain contained, despite rapid expansion over the next 12-24 months. We expect Saudi Arabia's improving GDP growth and fiscal trajectory will continue, tied to the country's emergence from the COVID-19 pandemic, ongoing structural reforms, and improving oil sector dynamics. Domestic credit growth will likely stay strong in 2022-2023 following the sharp 15% increase in 2021. We expect government's efforts to meet its Vision 2030 targets and strong demand for housing from Saudi nationals will support loan growth. Over the next few years, we forecast total credit growth at 10%-12%. Under our base-case scenario, we expect domestic
