Personal loans accounted for 35% of this growth, while the remaining 65% went to the corporate sector, primarily for real estate activities and utilities.

Real estate financing for corporate deals experienced a 27% surge in the third month of 2024, reaching SR275.2 billion, marking the highest annual growth rate in 10 months.

According to a study by Mortor Intelligence, the Saudi Arabian real estate market was valued at $69.51 billion in 2024 and is projected to reach $101.62 billion by 2029, growing at a compounded annual growth rate of 8%.

The text discusses the increase in debt-based financing for real estate and construction projects in Saudi Arabia, with local banks being the primary providers of loans.

According to SAMA data, new retail residential mortgage loans reached a 14-month high of SR7.63 billion in March, marking a 5 percent rise from the same month the previous year and a 10 percent increase from the previous month.

The financing for professional, scientific, and technical activities also saw a significant increase of 54 percent, totaling SR6.4 billion.

The largest portion of new mortgages to individuals in March was for home purchases, accounting for 64 percent and totaling SR4.91 billion.

In March 2023, new mortgage loans in Saudi Arabia saw significant growth, with apartment loans increasing by 28% to reach SR2.24 billion.

Land loans experienced a more modest growth of 4%, reaching SR474 million.

The increase in apartment loans may be due to the high demand from expatriates, as a Knight Frank study revealed that 68% of them prefer owning an apartment over a villa, particularly those aged 35-45 and 45-55.

Corporate loans also saw growth, with lending for electricity, gas, and water supplies rising by 27% to reach SR147.42 billion, making it the second largest contributor after real estate.

The Saudi Arabia power market is primarily driven by the residential, commercial, industrial, and other sectors.

According to a report by Global Data, the residential sector had the largest share in power consumption in 2023.

Separately, data from SAMA revealed significant growth in financing for sectors such as professional, scientific, and technical activities, which saw a 54% increase to SR6.4 billion, the highest annual growth rate among sectors.

Education loans also showed strong growth, increasing by 28% to SR6.27 billion.

Financing for administrative and support service activities also rose by 20%, totaling SR34.22 billion.