RIYADH: Islamic banks account for about 76 percent of the sector’s assets in Saudi Arabia, with Vision 2030 driving growth in corporate finance, infrastructure and small-business funding, a new analysis showed.
In its latest report, S&P Global Ratings said the Kingdom has one of the world’s largest Islamic banking systems, with growth supported by market reforms and the financing needs of its economic diversification program.
The Saudi trend mirrors a global Islamic finance boom, with worldwide assets climbing roughly 15 percent year on year to about $5.2 trillion in 2025 and projected to exceed $6 trillion by the end of 2026, according to AlHuda Center of Islamic Banking and Economics.
In the report, S&P Global stated: “Islamic banking in Saudi Arabia is well positioned for continued expansion. This will be supported by the sector’s central role in financing Saudi Arabia’s Vision 2030 program and the economy’s sustained funding needs, despite recent reprioritization of public projects and potential impacts of the Middle East war.”
Over the past five years, the combined assets of the Kingdom’s four largest Islamic lenders — Al Rajhi Bank, Alinma Bank, Bank Albilad and Bank AlJazira — have more than doubled, growing 2.1 times compared with 1.8 times for the six largest conventional peers, the report noted.
