An Economic Analysis for the Lending Performance of Saudi Agricultural Bank over the Economic Development Plans

The study aimed to analyze the performance of the Saudi Agricultural Bank over the various economic development plans. Some statistical indicators were estimated based on secondary data available in the annual reports of the bank in the period 1390/1391 – 1417/1418H. The results of the study showed the great contribution of the bank in financing the Agricultural Development in Saudi Arabia, as the average annual loans it provided to agricultural producers reached SR.3.000 millions during the third economic development plan. It is clear that the bank extended the base of its credit activities to cover a wide range of agricultural projects. The estimated concentration measures showed attendance to some concentration in lending towards the big loan, personal guarantee and specialized farm projects such as animal projects. The loans, which exceed SR. 0.5 million represented 41% and 71% of, total loans during the third and fourth economic development plans respectively. The percentage of repaid loans was only 70% of the loans due during the fourth economic development plan, which has a notable concentration towards big loans and specialized animal projects (58.21% of the total loans provided for specialized projects during the sixth economic development plan). The average loan for such a project amounted to SR. 3 millions since the third economic development plan. This study recommends reallocation for the agricultural credit giving more attention to traditional small farms, fish projects, honey production and the agricultural products of comparative advantage and economic feasibility. Also, precise evaluation of the credit capacity of the farmers before lending them is highly recommende