_0_1780326589.jpg)
Kazakhstan's manufacturing remained under pressure in May, PMI data shows
22 hours ago
Loans granted by Saudi banks to non-financial government entities (NFGEs) and the private sector rose 10% year on year to SAR3.43tn ($914.5bn) at the end of January 2026, up from SAR3.11tn in the same month a year earlier, according to data from the Saudi Central Bank (SAMA).
The growth reflects continued credit expansion in the kingdom as Saudi Arabia pushes ahead with Vision 2030 giga-projects and broader economic diversification efforts.
Bank loans to the private sector alone increased 10% year on year to SAR3.17tn for the same period. Lending grew steadily throughout 2025, rising from SAR3.11tn in January to SAR3.4tn by December, SAMA data showed.
The January lending data predates the outbreak of the US-Israeli war against Iran on February 28, which has since sent shockwaves through Gulf financial markets.
The Tadawul All Share Index fell as much as 4.6% on March 1, dropping to an intraday low of 10,214 points, its lowest level since March 2023.
Foreign institutional investors sold a net SAR2.1bn ($560mn) in Saudi equities on that day alone, the largest single-day foreign outflow since the exchange opened to direct international investment.
Saudi equities have since partially recovered, with the Tadawul 1.7% higher than pre-war levels by mid-March, supported by domestic buyers rotating funds from overseas holdings and a 7.6% rise in Saudi Aramco shares on the back of surging oil prices.
By contrast, the Dubai Financial Market index has plunged roughly 17% since the conflict began.
The broader Saudi financial system entered the war in a position of relative strength. Saudi banks held a capital adequacy ratio of 20% at the end of the third quarter of 2025, while SAMA maintained government reserves of SAR390bn.
Non-oil GDP growth of 4.8% has underpinned bank earnings outside the energy sector. Industry analysts warned, however, that prolonged conflict risks higher inflation, tighter credit markets and a potential delay to the Public Investment Fund's planned international bond issuance in the first half of 2026.
The kingdom has also faced direct military costs. Saudi Arabia ordered 730 PAC-3 MSE interceptor missiles worth $9bn in January 2026, stocks of which are now being drawn down at unprecedented rates as air defences engage Iranian ballistic missiles and drones targeting Saudi territory.
| Period | 2025 | 2026 | Change (%) |
|---|---|---|---|
| January | 3,113 | 3,432 | +10% |
| February | 3,148 | -- | -- |
| March | 3,205 | -- | -- |
| April | 3,231 | -- | -- |
| May | 3,273 | -- | -- |
| June | 3,284 | -- | -- |
| July | 3,321 | -- | -- |
| August | 3,343 | -- | -- |
| September | 3,370 | -- | -- |
| October | 3,382 | -- | -- |
| November | 3,389 | -- | -- |
| December | 3,404 | -- | -- |
Bank loans to the private sector increased by 10% year-on-year (YoY) to SAR 3.17 trillion for the same month, data showed. Source: SAMA
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Content
Data
Kazakhstan's manufacturing remained under pressure in May, PMI data shows
New orders decrease slightly. Record reductions in backlogs and stocks of finished goods.
Near-stabilisation of business conditions in Turkish manufacturing recorded by May PMI
Index at highest since March 2024. However, “safety stock building amid disruption caused by war in Middle East” was a factor.
Weaker investment and consumption hold back Polish GDP expansion in Q1
Poland's GDP grew 3.5% y/y in the first quarter, as household consumption and investment both weakened.
Turkey releases official 1Q GDP growth at 2.5% y/y
The civil servants of economic management tend to release a lower figure in the initial digestion, before revising it up in following releases.
