The head of advice at GIB Capital, Abdullah Al-Hamid, said that Saudi banks do not have any liquidity problem, explaining that the central bank has used its policies to reduce short-term pressure amid the increased demand for loans.
Al-Hamid added, in an interview with Al-Arabiya, that the same procedure was taken during the Corona crisis, which helped make liquidity available at banks.
He explained that the central bank has a lot of tools to make liquidity available with local banks.
He stated that the high percentage of real estate loans in the Saudi market is not “frightening”, in light of a government-led program to raise the percentage of ownership in general for citizens by more than 60%.
Al-Hamid stated that banks do not lend to one particular sector, but rather diversify the loan portfolio between the industrial or commercial sector, individuals or the residential sector.