Dublin, Feb. 25, 2025 (GLOBE NEWSWIRE) — The report titled “Saudi Arabia Consumer Finance Market, By Region, Competition, Forecast & Opportunities, 2020-2030F” is now available in the offerings of ResearchAndMarkets.com.
Valued at USD 356.72 Billion in 2024, the Saudi Arabia Consumer Finance Market is projected to grow to USD 973.97 Billion by 2030, achieving a CAGR of 18.28%.
The growth of the Saudi Arabian consumer finance market is anticipated to persist, fueled by ongoing economic diversification, digital transformation, and shifts in demographics. There will likely be sustained demand for consumer finance products—such as personal loans, mortgages, and Buy Now Pay Later (BNPL) services—as consumers increasingly seek financing to support their spending habits. Moreover, the rise of digital payment methods and fintech services is expected to enhance market accessibility, particularly for younger, tech-savvy individuals who favor online solutions. According to CEIC data, reported by the Saudi Central Bank, consumer bank loans in Saudi Arabia reached 452,321.357 SAR million by June 2024, up from 450,887.301 SAR million in March 2024.
Economic Diversification under Vision 2030
Vision 2030 is a pivotal factor driving the growth of the consumer finance market in Saudi Arabia. This bold strategy aims to diminish the nation’s dependency on oil revenues while fostering a more sustainable and varied economy. The initiative stresses the advancement of non-oil sectors, including retail, real estate, tourism, and financial services, which have a direct effect on the demand for consumer finance offerings. As these sectors expand, the necessity for personal financial products—including loans, mortgages, and credit cards—will increase to meet the changing needs of the population.
Additionally, Vision 2030 aims to enhance financial inclusion for underserved groups, thereby improving access to banking services for youth, women, and rural communities. This initiative is likely to significantly boost the adoption of consumer finance products as more individuals gain the ability to manage their finances and access credit for the first time.
The government has also initiated reforms to stimulate consumer spending by implementing subsidies for homeownership and loosening restrictions on automotive loans. In its 2024 budget, the Saudi government earmarked SAR 1.25 trillion for infrastructure, healthcare, and education, creating numerous opportunities for financial institutions to extend loans. Additionally, the Minister of Finance has approved a strategic framework that outlines developments in public debt and plans for the debt markets, anticipating funding needs of around SAR 86 billion to cover debt maturities and the expected budget deficit for 2024, reflecting a comprehensive approach to managing government financial activities.
Technological Advancements in Fintech
Consumers now have the convenience of applying for loans, processing payments, and overseeing their accounts directly from their smartphones, reducing the necessity for physical banking and enhancing user experience. The emergence of digital payment methods such as Apple Pay, STC Pay, and various local mobile wallets is also nudging consumers toward preferring cashless transactions, which complements the rise of consumer credit.
Furthermore, fintech advancements have introduced alternative credit assessment models that utilize non-traditional data such as transaction history and spending patterns to evaluate creditworthiness. This innovation opens doors for individuals lacking a conventional credit history, facilitating their access to loans and credit. Consequently, a growing number of residents in Saudi Arabia, including those from historically underserved demographics, can now engage in the consumer finance market. The Saudi government supports the fintech sector through regulations and policies designed to nurture innovation while ensuring the security and transparency of digital financial services.
Key Market Challenges
High Levels of Household Debt
A significant challenge for the Saudi Arabian consumer finance market is the escalating levels of household debt. As consumers increasingly turn to credit for personal loans, mortgages, and consumer products, the risk of over-leverage grows. In 2024, a rising number of consumers face difficulties in meeting their repayment commitments, potentially leading to financial instability within households.
Regulatory and Compliance Challenges
The proliferation of fintech solutions providing innovative access to credit also raises concerns regarding the regulation of these services. Authorities must strike a balance between promoting fintech innovation and maintaining stringent regulations to mitigate risks associated with fraud, money laundering, and cybersecurity. The regulatory landscape poses additional challenges for international financial institutions looking to enter the Saudi market, as navigating local regulations while remaining competitive may prove difficult for foreign entities.
Type Insights
Secured consumer finance constitutes the dominant segment within the Saudi Arabia consumer finance market, capturing a substantial share thanks to its attractive terms for both borrowers and lenders. In this model, loans are secured with collateral—such as property, vehicles, or other valuable assets—thereby minimizing risks for financial institutions. This assurance leads lenders to offer larger loan amounts at competitive interest rates, making secured loans appealing for consumers in need of significant funding. The growing demand for real estate and vehicles in Saudi Arabia is a crucial factor contributing to the prevalence of secured consumer finance.
Government programs promoting affordable housing and incentives for auto ownership have further amplified this demand, resulting in increased uptake of secured loans for these major investments. Furthermore, the rise in the number of middle-income households and the broader expansion of the Saudi economy under Vision 2030 support a higher adoption rate of secured loans. Financial institutions are continually innovating tailored secured financing options to address the diverse needs of consumers, enhancing access and convenience. Given that secured loans present greater stability and lower risk, they remain the preferred financing method in the Saudi Arabian consumer finance sector—a trend expected to continue in coming years.
Key Market Players
- Al Rajhi Banking & Investment Corporation SJSC
- National Commercial Bank SJSC
- Riyad Bank SJSC
- Saudi British Bank
- Samba Financial Group SJSC
- Saudi Investment Bank SJSC
- Alinma Bank SJSC
- Banque Saudi Fransi SJSC
- Alawwal Bank
- Arab National Bank
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
3.1. Market Overview
3.2. Market Forecast
3.3. Key Regions
3.4. Key Segments
4. Voice of Customer
4.1. Factors Influencing Financing Decisions
4.2. Information Sources
5. Saudi Arabia Consumer Finance Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Type Market Share Analysis (Unsecured Consumer Finance, Secured Consumer Finance)
5.2.2. By Regional Market Share Analysis
5.2.2.1. Northern & Central Market Share Analysis
5.2.2.2. Western Market Share Analysis
5.2.2.3. Southern Market Share Analysis
5.2.2.4. Eastern Market Share Analysis
5.2.3. By Top 5 Companies Market Share Analysis, Others (2024)
5.3. Saudi Arabia Consumer Finance Market Mapping & Opportunity Assessment
5.3.1. By Type Market Mapping & Opportunity Assessment
5.3.2. By Region Market Mapping & Opportunity Assessment
6. Saudi Arabia Unsecured Consumer Finance Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Product Type
6.2.1.1. Saudi Arabia Personal Loan Market Share Analysis
6.2.1.2. Saudi Arabia Home Improvement Loan Market Share Analysis
6.2.1.3. Saudi Arabia Credit Card Market Share Analysis
6.2.1.4. Saudi Arabia Consumer Durable Finance Market Share Analysis
6.2.1.5. Saudi Arabia Education Loan Market Share Analysis
7. Saudi Arabia Secured Consumer Finance Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Product Type
7.2.1.1. Saudi Arabia Collateral Loan Market Share Analysis
7.2.1.2. Saudi Arabia Housing Loan Market Share Analysis
7.2.1.3. Saudi Arabia Auto Loan Market Share Analysis
8. Market Dynamics
8.1. Drivers
8.2. Challenges
9. Market Trends & Developments
10. SWOT Analysis
10.1. Strength
10.2. Weakness
10.3. Opportunity
10.4. Threat
11. Policy & Regulatory Landscape
12. Saudi Arabia Economic Profile
13. Competitive Landscape
13.1. Company Details
13.1.2. Products & Services
13.1.3. Financial Data (As Available)
13.1.4. Key Market Focus & Geographical Presence
13.1.5. Recent Developments
13.1.6. Key Management Personnel
For more details on this report, visit https://www.researchandmarkets.com/r/e7ilfb
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