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How Saudi Banks Are Set To Maintain Strong Profitability In 2025 Amid Credit Growth And Vision 2030

by THEFUTURE.TEAM

January 21, 2025

Saudi Arabia’s banking sector is on track for continued stability and profitability into 2025, as credit growth remains robust and lower interest rates foster an increasingly favorable lending environment. A recent report by S&P Global Ratings projects that corporate lending will drive the lion’s share of growth, while ongoing government initiatives, notably the Vision 2030 plan, are expected to fuel lending activity further.

The Credit Surge: Corporate Lending Leading The Charge

Corporate lending is poised to be the backbone of credit growth in Saudi banks. Thanks to the ambitious Vision 2030 projects, particularly in infrastructure and large-scale development sectors, demand for financing is at an all-time high. The anticipated credit growth of 10% in 2025 is largely driven by corporate financing needs as the kingdom’s private sector works to align with national goals of diversification and modernization.

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The effects of lower interest rates are already evident, as they are expected to further boost mortgage lending, adding yet another layer of growth to the financial system.

Stability Despite Rising Non-Performing Loans

Although non-performing loans (NPLs) are expected to edge up to 1.7% of total loans by 2025, up from 1.3% in September 2024, Saudi banks are well-equipped to handle the rise. Given the moderate nature of the increase and the absence of substantial write-offs, the banking sector remains resilient.

Banks in Saudi Arabia have built strong provisioning buffers, enabling them to manage any potential losses comfortably. This fortifies their position in what is likely to be a period of steady but not explosive credit growth.

The Global Landscape: International Financing For Vision 2030

As the country embarks on its ambitious Vision 2030 initiatives, Saudi banks are expected to continue leveraging international capital markets to fund the financing required for various projects. These initiatives are set to provide substantial long-term growth potential for both local and foreign lenders.

Surprising Loan Growth Signals A Thriving Sector

Saudi banks have already demonstrated impressive growth. The third quarter of 2024 saw a 3.7% quarter-on-quarter increase in loans and advances. Corporate and wholesale banking led the charge, growing by 4.4% and proving that the demand for lending within the kingdom is not just stable but accelerating.

With the ongoing strength of corporate lending, it’s clear that Saudi Arabia’s financial sector is far from reaching its peak growth potential. The financial support for Vision 2030 projects will likely continue to drive lending demand for the foreseeable future.

Vision 2030 And Non-Oil Sector Growth: A Diversified Path Ahead

Vision 2030’s focus on diversification and reducing reliance on oil revenues is showing tangible results in Saudi Arabia’s economy. The non-oil sector has posted strong growth, particularly in construction and services, driven by an expansion of the domestic workforce and increased consumer demand. The boost in the non-oil private sector has also been bolstered by a surge in export activities.

In December, the Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) held steady at a strong 58.4, a modest dip from a 17-month high but still well above the 50.0 mark, indicating sustained growth in the private sector.

The Road Ahead: A Stable Path To Profitability

Looking to 2025, Saudi banks are positioned to continue benefiting from a thriving lending market. Corporate lending will remain a driving force, particularly as Vision 2030 continues to evolve and demand for financing rises. Although NPLs may see a slight increase, the banking sector’s strength in terms of provisions and a favorable credit environment will provide a cushion.

With a diversified economy and continued strong performance in the non-oil sector, Saudi Arabia’s financial institutions are set for another profitable year. As they continue to align with the kingdom’s forward-looking initiatives, Saudi banks will likely play a central role in the ongoing transformation of the kingdom’s economic landscape.

In short, 2025 looks promising for Saudi Arabia’s banks. They are well-prepared to leverage the growing demand for corporate and mortgage lending while maintaining strong profitability through their involvement in the Vision 2030 agenda.

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Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

by THEFUTURE.TEAM

October 23, 2026

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

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A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.