Middle East Economic Survey

VOL. XLVIII

No 49

5-December-2005

SAUDI ARABIA

Saudi Banks To Restrict Personal Loans

Saudi Arabias central bank has tightened limits on consumer lending after a surge in credit helped Saudi shares to increase sharply. Earlier this month, the Saudi Arabian Monetary Agency (SAMA) instructed banks to cut loan terms from 10 to five years and limit their value at 15 or 17 times the borrowers monthly salary instead of the previous ceiling of 27 times. This initiative aims to...