Arab Today, arab today loan growth accelerates in saudi arabia
Last Updated : GMT 14:17:38
Arab Today, arab today
Arab Today, arab today

Loan growth accelerates in Saudi Arabia

Arab Today, arab today

Arab Today, arab today Loan growth accelerates in Saudi Arabia

Riyadh - Arabstoday

Slowing inflation in Saudi Arabia is giving banks room to boost lending as the government increases spending on infrastructure and housing in the largest Arab economy. Consumer prices rose 4 per cent in July, the lowest rate of increase since October 2009, according to data from the Central Department of Statistics. Food, medical care and transport services led the slowdown, it said. Inflation concerns are easing even as loan growth to private businesses accelerates. The kingdom has started implementing its $514 billion (Dh1.89 trillion) plan to build homes, industrial cities and airports. The projects helped boost lending to private businesses in the world’s biggest oil-exporting nation by 14 per cent in July. Banks have “sufficient room to increase lending and I don’t think liquidity is much of a concern at this point in time,” Murad Ansari, an analyst at Egyptian investment bank EFG-Hermes Holding SAE, said in a telephone interview from Riyadh. “Bank lending, although it has picked up, isn’t really at levels which would be a concern to the central bank yet.” Loan demand has lifted the three-month Saudi interbank offered rate, known as Saibor, and the benchmark used by banks to price some loans, to 0.9563 per cent on Saturday, the highest since April 2009, data compiled by Bloomberg show. The rate’s spread over the equivalent US rate widened to 55 basis points on Saturday, from 20 basis points at the end of 2011, according to the data. T-bill sales The yield on one-year Saudi treasury bills is up eight basis points this year to 0.59334 per cent at Monday’s auction. Saudi Arabia holds weekly bill sales on Mondays. Inflation in five of the six Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE and Qatar, exceeded 10 per cent in 2008 as rising oil prices spurred economic growth and created a shortage of housing and services, while a weaker US dollar made imports more expensive. Saudi inflation was a record 11.1 per cent in July 2008, a year when bank credit expanded 27 per cent, increasing pressure on the central bank to abandon its dollar peg and curb lending. The rise in food and beverage prices slowed to 4.5 per cent in the first seven months, compared with 5.8 per cent a year earlier, according to data. Transport and telecommunication services price increases slowed to 1.9 per cent from 2.1 per cent. Price drop “There’s been a sharp fall in commodity prices and the dollar has been quite strong as well,” Giyas Gokkent, chief economist at the National Bank of Abu Dhabi PJSC, the UAE’s second-biggest bank, said on Sunday in a telephone interview. Bank lending in Saudi Arabia should grow at an annual 15 per cent rate this year, EFG-Hermes’s Ansari said on Sunday. Should lending accelerate further, banks have room to increase deposits by offering higher interest rates to clients, he said. Companies including Saudi Arabian Mining Co. and Saudi Acrylic Monomer Co. are increasing borrowing from banks to expand as the government moves to diversify the Saudi economy. Saudi developers are also tapping bank loans to build real estate projects. Makkah-based Jabal Omar Development Co. signed a 5 billion riyal (Dh4.77 billion) Islamic financing deal in June to complete the first stage of its projects in the city. Emaar Economic City, a unit of Dubai’s Emaar Properties PJSC, is developing King Abdullah Economic City on the Red Sea coast that will house about 2 million people. Red Sea Housing Services Co., based in Jubail, said in July it’s investing 2 billion riyals in expansion. The Saudi economy grew 6.8 per cent last year compared with average growth of 1.3 per cent among Group of 10 industrialised nations, according to data compiled by Bloomberg. The economy is set to grow 5 per cent this year, the second-fastest pace in the GCC after Qatar and on par with Kuwait, according to the median estimate of 12 economists compiled by Bloomberg in July. Saudi home lending grew at the fastest pace in at least four years in the second quarter, jumping 83 per cent to 48 billion riyals, according to the Central Bank. From: Gulf News.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today loan growth accelerates in saudi arabia Arab Today, arab today loan growth accelerates in saudi arabia

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday