Interview: Tony Cripps, CEO and Managing Director, SAB, on capital discipline, housing demand and transition opportunities
How is the current interest-rate environment influencing lending activity and business confidence?
TONY CRIPPS: A more normalised interest-rate environment is acting as an added catalyst in an already robust economy, helping to lower funding costs and ease competitive pressures across the sector. Credit demand has remained strong throughout 2025 and is expected to continue into 2026. While growth has moderated somewhat since mid-year, overall credit expansion remains healthy at around 14%, with corporate lending still leading at just under 20%. That dynamic is likely to persist given solid underlying demand. Large-scale infrastructure and giga-projects, including preparations linked to the FIFA World Cup 2034, continue to underpin the Kingdom’s economic transformation and remain a key driver of corporate credit. Housing finance is another important engine. Home ownership has proven to be a major success story, with demand from Saudi nationals continuing to rise and lower rates further supporting affordability. International participation across the economy is also expanding, driving demand for cross-border and structured financing solutions. At the same time, opportunities in energy, transition finance and sustainable finance are growing.
In what ways can banks keep housing finance accessible and sustainable as home ownership grows?
CRIPPS: Across the sector, this involves investing in digital mortgage journeys, faster approvals and simplified documentation, which help reduce costs and improve customer experience. Close collaboration with national housing programmes has been critical in expanding access for first-time buyers. Support from initiatives led by the Real Estate Development Fund and the Ministry of Housing has been a key driver of growth over the past five to six years. Banks have supported this by delivering financing efficiently and at scale, but the success of the housing market reflects strong policy backing and public-private alignment. Looking ahead, sustainable growth in housing finance depends on disciplined underwriting, diversified funding sources and prudent risk management.
To what extent can the sector accelerate small and medium-sized enterprise (SME) finance, as public programmes aim to strengthen the segment?
CRIPPS: SMEs are central to Saudi Arabia’s diversification objectives, and the banking sector has a clear opportunity to accelerate financing by combining guarantee schemes, alternative data and cash-flow based lending. Collaboration with government-backed programmes such as Kafalah helps mitigate risk and extend credit to a broader base of viable businesses. At the same time, using wider data sources – including transaction flows, supply-chain information and digital payment records – allows banks to assess SME creditworthiness beyond traditional collateral-heavy models. Digitalising SME onboarding, offering more tailored products and working with fintech platforms are also helping banks reach underserved segments.
What role can banks play in scaling sustainable finance to support Vision 2030 goals while safeguarding asset quality and capital buffers?
CRIPPS: This includes financing projects linked to energy transition, resilient infrastructure and broader economic diversification, while aligning lending activity with evolving environmental, social and governance (ESG) frameworks. Across the sector, sustainable finance is increasingly embedded into core business strategies rather than treated as a standalone initiative. Banks are developing new products, engaging more actively with clients on transition plans and strengthening governance and disclosure frameworks as ESG approaches maturity. Asset quality and capital strength also remain paramount. Rigorous credit standards, supported by robust capital and liquidity buffers, are essential to ensuring sustainable finance growth.
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