Rapid credit growth has reduced the availability of liquidity in the Saudi banking sector. The government has large deposits with the Saudi Central Bank but is not deploying this liquidity to alleviate pressure on banks. Whether the government will step up its deposits with the banking system in 2023 is unclear. We expect banking sector credit growth will slow to 10%-12% in 2023-2024, owing to a high base effect, higher interest rates, and tighter liquidity.