A report released by the Saudi Arabian Monetary Authority (SAMA)  a slowdown in mortgage credit growth in 2015, as it fell from approximately 30% in 2014 to 17.2%, Mortgage loans granted to companies accounted for 45% of total mortgage loans, while mortgage loans to individuals accounted for 55%.

Despite the slowdown in mortgage credit growth in 2015, its share of total bank credit rose by 1% to reach 13.7%, with the ratio of mortgage credit to gross domestic product (GDP) standing at 7.7%, and its ratio to non-oil GDP at 10.8%.

Several factors contributed to the decline in mortgage credit, including the requirement that the maximum mortgage-to-value ratio be 70%, which reduced demand for mortgage loans, Furthermore, after a period of rapid growth, finance companies played a significant role in granting loans, which reduced the volume of mortgage credit provided by banks. Demand for real estate was also affected by individuals" wait-and-see attitude regarding the imposition of fees on undeveloped land and their expected impact on real estate prices.

The report also showed that consumer loans grew by 4.5 % to reach 337.3 billion riyals in 2015, accounting for 24.8% of total bank credit. This increase is attributed to the growth of the labor force, lower interest rates, improved risk assessment of individual borrowers, and technological advances, while the slowdown in its growth is attributed to the general slowdown in economic activity.

It noted that the quality of consumer loans remains high, with the delinquency rate on consumer loans and credit card loans standing at 0.7 % in the fourth quarter of 2015.

The data shows that the quality of consumer loans and credit card loans improved during 2015, and the high quality of these loans is attributed to sound credit risk management at banks and the conservative prudential measures of the Saudi Arabian Monetary Authority.

According to the report, the decline in consumer credit growth indicates a shift in consumer spending patterns; in the past four years, consumers spent more on cars and equipment than on home renovations. In 2015, however, home renovations accounted for 9.4 % of consumer loans, while the purchase of cars and equipment accounted for 8.5 % of consumer loans, Spending on other consumer activities, with the exception of home renovations, also declined in 2015.