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 Growth Drivers:

Increased Demand for Sharia-Compliant Financial Instruments

The consumer finance market in Saudi Arabia is driven by heightened need for Sharia-compliant solutions that are in tune with Islamic banking principles. Banks are constantly increasing products to align consumer expectations for interest-free and ethically consistent financing options. This trend is also backed by the regulatory framework, whereby the regulator is making sure that financial solutions are in line with Islamic laws while offering transparency and consumer protection. With customers demanding more Islamic financing options for real estate, education, and personal requirements, banks and non-banking institutions are adapting by launching customer-driven, innovative products. Products like Murabaha, Ijara, and Tawarruq financing are steadily gaining popularity because they are being positioned as suitable substitutes for traditional loans. This cultural and religious value orientation is reinforcing consumer confidence, thus supporting consumer finance service growth in Saudi Arabia.

Rising Digitalization and Fintech Embeddedness

The industry is being transformed through the accelerated uptake of fintech and digital banking solutions, which are simplifying access to financial services for consumers. Banks and financial institutions are making investments in sophisticated digital platforms, mobile platforms, and online delivery models for services to respond to a more technology-oriented population. The government is also facilitating the change through initiatives under Vision 2030, which is focusing on digitalization and innovation in financial services. Consumers are expecting quick loan approvals, hassle-free digital onboarding, and real-time money management features, which fintech firms are offering on a regular basis. Collaborations between conventional banks and fintech firms are also adding to product variety and efficiency, further popularizing consumer finance and reducing its costs. As mobile coverage and internet penetration are increasing throughout the Kingdom, digital consumer finance products are increasing in adoption, allowing financial institutions to access under-served segments and enhancing customer experience and operational effectiveness.

Growing Middle-Class Expenditure and Appetite for Credit

Growing middle-class consumer base in Saudi Arabia is driving the demand for consumer finance as families are increasingly demanding credit to fund lifestyle improvements, education, housing, and personal spending. Increasing disposable incomes and a trend among consumers towards credit consumption are pushing usage of personal loans, credit cards, and installment financing. Younger segments are especially embracing credit as a way to avail goods and services without immediate financial burden. Other than that, social and economic changes as part of Vision 2030 are increasing job opportunities and women's workforce participation, further increasing consumer spending power. Since the retail and e-commerce industries are expanding, demand for installment-based credit and buy-now-pay-later (BNPL) plans is increasing, providing customers with convenient choice to finance. This increasing demand for credit is reinforcing the position of consumer finance in financing both consumption by households and overall economic diversification activities within Saudi Arabia.

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:

• March 2025: The Saudi Central Bank has issued a license to Alannaya Al-Yatmania for providing finance aggregation services. This means collecting and merging financial information from multiple sources like credit cards, loans, bank accounts, investments, and other financial services into one interface, offering users enhanced visibility and control over their financial situation.
• March 2025: Egyptian fintech Khazna has raised $16 million in pre-Series B funding, increasing its total funding to more than $63 million. The company, established in 2019, offers salary advances, digital payment solutions, and microloans to low- and middle-income employees without access to conventional banking. Khazna, with 500,000 users, is currently pursuing a digital banking license in Egypt to enable it to accept deposits and reduce borrowing expenses. The firm intends to obtain regulatory authorization by the middle of 2026. Khazna is also growing in Saudi Arabia, utilizing the significant Egyptian diaspora and the demand for consumer finance options. It intends to produce 40-50% of its earnings from Saudi Arabia over the next four years, preparing for a possible IPO on the Tadawul stock exchange.
• February 2025: The Saudi Central Bank (SAMA) announced on Monday that Tamara has obtained a license to offer consumer finance and buy-now-pay-later (BNPL) services. This milestone comes after the company's previous initial approval, making Tamara one of the 65 financial firms currently licensed by SAMA. With this official license, Tamara is able to provide financing options over SAR 5,000 ($1,333), greatly extending beyond the scope of its prior BNPL activities. The authorization allows the company to reach a wider clientele and expand its range of financial products.
• December 2024: D360 Bank became the first licensed digital bank to operate in the country after obtaining approval from the Saudi Central Bank (SAMA). After D360 Bank's launch, the other two licensed digital banks, Vision Bank and STC Bank, received SAMA's authorization in January 2025 and started their operations.

Saudi Arabia Consumer Finance Market Report Coverage:

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.