RIYADH: Saudi banks witnessed a 7.67 percent surge in letters of credit to the private sector in the first 11 months of 2023, compared to the same period the previous year. The data, released by the Saudi Central Bank, revealed that settled LCs and received bills to this sector hit SR155.19 billion ($41.38 billion). LCs, a financial document issued by a bank, guarantee payment to the seller upon fulfilling specified conditions in a trade transaction. The growth is primarily attributed to an upsurge in the import of motor vehicles, accounting for around 75 percent of the overall increase. The import value in this category reached SR39.7 billion, marking a 26.29 percent increase, the data showed. Despite being the second-highest growth sector after machinery imports, its significant percentage share of total LCs had a more profound impact, driving overall growth. Machinery imports, funded via bank LCs, comprised a 5 percent share but demonstrated the highest growth at 58 percent, reaching a total of SR7.5 billion. Additionally, the growth in this category contributed 25 percent to the overall increase in bank LCs to the private sector during this period. Appliance imports witnessed an 8 percent growth, totaling SR3.23 billion. Meanwhile, building material imports increased by 5 percent, with bank LCs for this category reaching SR14.9 billion. Foodstuff imports decreased, with LCs for this category dropping by 34 percent to reach SR12.2 billion. Saudi Arabia, the largest construction market in the Middle East, is rapidly expanding with lucrative opportunities driven by Vision 2030, private sector investments, and ongoing reforms. As part of the initiative, Saudi Arabia aims to create a conducive environment to foster the growth and expansion of industrial enterprises. The goal is to strengthen the private sector and optimize its developmental impact on the Saudi economy.