Saudi Arabia Consumer Finance Market

Saudi Arabia Consumer Finance Market Overview:

The Saudi Arabia consumer finance market size reached USD 356.72 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,628.80 Billion by 2033, exhibiting a growth rate (CAGR) of 16.40% during 2025-2033. The market is experiencing growth fueled by increased consumer spending, favorable regulatory adjustments, and a rise in the demand for personal credit and financing options. Moreover, enhanced digital banking services and financial product innovation further influences the Saudi Arabia consumer finance market share.

Saudi Arabia Consumer Finance Market Trends:

Rise of Digital Lending Platforms

The adoption of digital lending platforms is significantly shaping the Saudi Arabia consumer finance market outlook. Fintech solutions are becoming more prevalent, offering consumers faster, more accessible loan processing and personalized financial services. This shift is driven by the increasing use of mobile banking and digital wallets, coupled with growing consumer expectations for convenient and efficient financial solutions. For instance, according to industry reports, in 2023, Saudi Arabia witnessed 70% growth in non-cash payments, highlighting the shift toward cashless transactions. Moreover, traditional banks are collaborating with or acquiring fintech startups to enhance their digital offerings and stay competitive. This trend underscores a broader shift towards digital-first banking experiences, making financial services more inclusive and user-friendly for a tech-savvy population that seeks seamless interactions with financial institutions.

Growth in Personal and Consumer Loans

The demand for consumer and personal loans in Saudi Arabia is experiencing a sharp rise due to factors including increasing consumer spending, better economic stability, and an emerging youth population with changing financial needs. For example, as per market reports, personal loan stood at SR1.25 trillion as of January 2024, indicating a 7% growth annually. The increase in credit products with flexible loan products designed for specific uses such as education, home renovations, and car financing helps fuel the trend. Banks are creating new loan products with attractive interest rates and repayment schedules to appeal to a diverse variety of customers. It is also fueled by increased credit availability from more lenient lending policies and inclusion of sophisticated credit scoring systems.

Regulatory Reforms Supporting Market Expansion

Continued regulatory reforms designed to promote a healthy and transparent financial environment are enhancing the Saudi Arabia consumer finance market growth. For example, as per business reports, the regulatory sandbox of the Saudi Central Bank (SAMA) has received more than 500 fintech applications, enabling varied business models such as open banking and peer-to-peer lending, with more than 89 fintech licensed through November 2023. Not only are these regulatory initiatives raising confidence in financial services but also attracting non-banking financial institutions providing specialized products. These reforms spur the innovation of various financial products, make the markets stable, and foster sound competition, thereby enhancing consumer choices and maintaining market growth.

Saudi Arabia Consumer Finance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on product type, credit score, application channel, loan purpose, and term length.

Product Type Insights:

• Personal Loans
• Credit Cards
• Mortgages
• Auto Loans
• Home Equity Loans

The report has provided a detailed breakup and analysis of the market based on the product type. This includes personal loans, credit cards, mortgages, auto loans, and home equity loans.

Credit Score Insights:

• Excellent (700-850)
• Good (620-699)
• Fair (580-619)
• Poor (300-579)

A detailed breakup and analysis of the market based on the credit score have also been provided in the report. This includes excellent (700-850), good (620-699), fair (580-619), and poor (300-579).

Application Channel Insights:

• Online
• In-Store
• Mobile App
• Broker

The report has provided a detailed breakup and analysis of the market based on the application. This includes online, in-store, mobile app, and broker.

Loan Purpose Insights:

• Debt Consolidation
• Home Renovations
• Education
• Car Purchase
• Medical Expenses

A detailed breakup and analysis of the market based on the loan have also been provided in the report. This includes debt consolidation, home renovations, education, car purchase, and medical expenses.

Term Length Insights:

• Short-Term (less than 1 year)
• Medium-Term (1-5 years)
• Long-Term (5+ years)

A detailed breakup and analysis of the market based on the term length have also been provided in the report. This includes short-term (less than 1 year), medium-term (1-5 years), and long-term (5+ years).

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Consumer Finance Market News:

• In 2023, Fintech Saudi and Kyndryl partnered under the Makken Enablement Program to drive innovation among Saudi fintech startups. Supported by SAMA and the Capital Market Authority, the initiative provides a secure cloud-based platform, technical assistance, and educational workshops to help entrepreneurs develop and launch their products efficiently.

Saudi Arabia Consumer Finance Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia consumer finance market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia consumer finance market on the basis of product type?
• What is the breakup of the Saudi Arabia consumer finance market on the basis of credit score?
• What is the breakup of the Saudi Arabia consumer finance market on the basis of application channel?
• What is the breakup of the Saudi Arabia consumer finance market on the basis of loan purpose?
• What is the breakup of the Saudi Arabia consumer finance market on the basis of term length?
• What are the various stages in the value chain of the Saudi Arabia consumer finance market? 
• What are the key driving factors and challenges in the Saudi Arabia consumer finance market?
• What is the structure of the Saudi Arabia consumer finance market and who are the key players?
• What is the degree of competition in the Saudi Arabia consumer finance market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia consumer finance market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia consumer finance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia consumer finance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.