372.8 billion riyals of consumer loans in Saudi Arabia by the...

Personal consumer loans in Saudi Arabia grew by the end of the third quarter of this year to about 372.82 billion riyals, compared to about 355.85 billion riyals at the end of the second quarter of the same year, registering a growth of 4.8 percent, equivalent to 16.97 billion riyals.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, based on SAMA data, consumer loans grew at their fastest pace in seven and a half years, that is, since 2013, in conjunction with the continued decline in interest rates.
On a quarterly basis, growth in the third quarter is strong, unlike the last seven quarters when growth rates stabilized between positive growth of 1.5 percent and 1.5 percent negative growth, except for the fourth quarter of 2019, which grew by about 3.5 percent.
On an annual basis, consumer loans grew by the end of the third quarter of this year by 9.5 percent (32.2 billion riyals), compared to about 340.59 billion riyals at the end of the same period last year.
Consumer loans recorded growth for the fourth quarter on an annual basis, after growing negatively in the third quarter of 2019, the first decline in growth rates since 2017.
It is noteworthy that consumer loans do not include real estate financing, financial leasing or financing granted for the purpose of trading in shares.
Consumer loans include eight main sections, which are: loans for the restoration, furnishing and improvement of real estate, the purchase of cars and personal transportation, the purchase of furniture and durable goods, education, health care, credit card loans, in addition to other consumer loans.
Loans for the purpose of restoring and improving real estate accounted for about 6.8 percent of total consumer loans in Saudi Arabia by the end of the third quarter of this year, with a value of 25.46 billion riyals, while loans for cars and personal transportation represented about 4.3 percent, with a value of 15.92 billion riyals.
Loans for the purpose of buying furniture and durable goods represented about 3.3 percent of consumer loans, at a value of 12.47 billion riyals, while loans for education accounted for about 1.1 percent, with a value of 4.04 billion riyals.
While loans for health care accounted for about 0.2 percent, with a value of 605 million riyals, while loans for tourism and travel accounted for about 0.2 percent, with a value of 563 million riyals.
Credit card loans accounted for about 5.5 percent, at a value of 20.56 billion riyals, while the largest share of other consumer loans, with a share of 78.6 percent, amounted to 293.21 billion riyals.
The other consumer loans are not classified in the previous sections and include any consumer loan other than the previous classifications.
In addition, consumer loans in Saudi Arabia increased by the end of last year to about 352.5 billion riyals, compared to 336.6 billion riyals by the end of 2018, registering an increase of 4.7 percent, equivalent to 15.9 billion riyals.
Consumer loans rose in 2019 for the 11th year in a row, after their decline in 2008, and then continued annual increases until the end of last year.
In 21 years, consumer loans have doubled six and a half times, reaching a value of 46.1 billion riyals at the end of 1998.
During the same period, consumer loans recorded only a single annual decline, which was in 2008, in conjunction with the global financial crisis, when they fell to 169.3 billion riyals, compared to 174.5 billion riyals at the end of 2007.Economic Reports Unit