Saudi Arabia Consumer Finance Market By Type (Unsecured Consumer Finance and Secured Consumer Finance), Competition Forecast & Opportunities, 2012-2022
Published Date: February - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationSaudi Arabia Consumer Finance Market By Type (Unsecured Consumer Finance and Secured Consumer Finance), Competition Forecast & Opportunities, 2012-2022
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The global consumer finance market was valued USD1221 billion in 2022 and is predicted to grow at CAGR of 7.16% through 2028.
High demand for residential houses from expatriates entering the country, rising land prices, increasing number of initiatives by government to strengthen the financial system and aggressive marketing strategies by banks to provide low interest rate consumer finance products are projected to drive the consumer finance market in Saudi Arabia through the next five years. Increasing population and rising demand for technologically advanced and luxurious consumer durable products are among the other major factor anticipated to boost consumer finance market in the country during 2017 - 2022. Al Rajhi Banking & Investment Corporation, National Commercial Bank, Riyad Bank are the major entities involved in offering a wide range of consumer finance products in the country.
Saudi Arabia Consumer Finance Market By Type, Competition Forecast & Opportunities, 2012-2022
- Saudi Arabia Consumer Finance Market Size, Share & Forecast
- Segmental Analysis – (Unsecured Consumer Finance - Personal Loan, Home Improvement Loan, Credit Card, Consumer Durable Finance, Education Loan and Other Unsecured Consumer Finance; and Secured Consumer Finance - Collateral Loan, Housing Loan and Auto Loan)
- Policy & Regulatory Landscape
- Changing Market Trends & Emerging Opportunities
- Competitive Landscape & Strategic Recommendations
Why You Should Buy This Report?
- To gain an in-depth understanding of consumer finance across the country
- To identify the on-going trends and anticipated growth in the next five years
- To help financial institutions, banks and other stakeholders align their market-centric strategies
- To obtain research based business decisions and add weight to presentations and marketing material
- To gain competitive knowledge of leading market players
- To avail 10% customization in the report without any extra charges and get the research data or trends added in the report as per the buyer’s specific needs.
Report Methodology
The information contained in this report is based upon both primary and secondary research. Primary research included interviews with public and private financial institutions operating in the consumer finance market. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and proprietary databases.
Market Overview
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DefinitionConsumer finance in Saudi Arabia includes a range of financial products and services such as personal loans, credit cards, auto loans, mortgages, and buy-now-pay-later (BNPL) schemes.
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Market SizeThe market has been expanding steadily, supported by government initiatives like Vision 2030, which aims to reduce the country's dependence on oil and promote a more diversified economy.
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Key PlayersMajor banks and financial institutions, including Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, and Samba Financial Group, dominate the market. Fintech companies are also emerging as significant players.
Key Drivers
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Vision 2030 Initiatives
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The Saudi government's Vision 2030 plan has spurred economic growth and increased consumer spending, boosting demand for consumer finance products.
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Programs like housing schemes (e.g., Sakani) have increased demand for mortgages.
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Young Population
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Over 60% of Saudi Arabia's population is under the age of 35, creating a large base of potential borrowers for personal loans, credit cards, and other financial products.
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Digital Transformation
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The rise of fintech and digital banking platforms has made consumer finance more accessible and convenient.
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Mobile banking and online loan applications are becoming increasingly popular.
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Increasing Consumer Spending
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Rising disposable incomes and a growing middle class have led to higher demand for consumer goods, automobiles, and housing, driving the need for financing.
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Regulatory Support
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The Saudi Central Bank (SAMA) has introduced regulations to promote financial inclusion and encourage innovation in the sector.
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Trends
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Buy-Now-Pay-Later (BNPL) Growth
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BNPL services are gaining traction, especially among younger consumers, as an alternative to traditional credit cards.
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Fintech Expansion
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Fintech startups are disrupting the market by offering innovative solutions such as peer-to-peer lending, digital wallets, and streamlined loan approval processes.
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Green Financing
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There is a growing focus on sustainable finance, with banks offering green loans and financing options for eco-friendly products.
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E-commerce Boom
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The rapid growth of e-commerce in Saudi Arabia has increased the demand for consumer finance products, particularly for online purchases.
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Challenges
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High Debt Levels
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Some consumers are facing high levels of personal debt, leading to concerns about repayment capabilities and potential defaults.
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Regulatory Compliance
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Financial institutions must navigate a complex regulatory environment, which can increase operational costs.
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Economic Uncertainty
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Fluctuations in oil prices and global economic conditions can impact consumer confidence and spending.
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Competition
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The market is becoming increasingly competitive, with both traditional banks and fintech companies vying for market share.
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Future Outlook
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The Saudi Arabia Consumer Finance Market is expected to continue growing, driven by economic diversification, digital transformation, and increasing financial inclusion.
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Fintech innovation will play a crucial role in shaping the market, with a focus on enhancing customer experience and offering tailored financial products.
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The government's commitment to Vision 2030 and ongoing reforms will further support market growth.
Key Statistics (as of recent data)
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Personal Loans GrowthPersonal loans have been growing at a CAGR of ~8-10% over the past few years.
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Mortgage MarketThe mortgage market is expanding rapidly, with homeownership rates increasing due to government initiatives.
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Fintech InvestmentsSaudi Arabia has seen a surge in fintech investments, with the sector attracting significant funding from both local and international investors.
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