Moody expects credit to the Saudi private sector to grow by 10% in 2022

Moody’s, the credit rating agency, expected growth in credit granted to the private sector in the Kingdom by 10% in 2022.

 it added that the demand for credit from companies must be supported by projects of the Public Investment Fund and government institutions.

It stressed that four factors contributed to the stability of the banking sector’s future outlook which is: improved operational circumstances, increasing profitability, acceleration of credit growth, and rise in oil prices.

It added that the non-oil sector will recover further during the current year, supported by the rise in oil prices and production.

Moody’s added that the coming period will witness an increase in reliance on foreign and market funding; because loan growth will outpace deposit growth over the next eighteen months.