In a clear break from past trends, Saudi Arabia’s private sector is growing. This trend can be in part explained by the increase in bank lending to private sector. In year-on-year terms, lending growth was at its highest since March 2009. More specifically, bank lending to private sector rose by 1.1 percent in April to reach 13.5 percent in year-on-year terms, according to a recent report by Jadwa Investment. Increased lending opportunities are crucial for the growth of the private sector, as they provide entrepreneurs and SMEs with the possibility to pursue new ventures. In advancing the opportunities available in the private sector, increased lending also creates important positive spill-over effects in the rest of the economy, such as the creation of more jobs.
