Saudi Arabia Consumer Finance Market: Vision 2030, Financial Inclusion & Market Growth

According to IMARC Group's latest research publication, The Saudi Arabia consumer finance market size reached USD 415.2 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 1,635.1 Billion by 2034, exhibiting a growth rate (CAGR) of 16.45% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Consumer Finance Market

• Enhancing Digital Lending Platforms: AI-powered algorithms streamline loan approval processes by 60%, with fintech solutions offering personalized financial services and faster processing through advanced credit scoring systems that analyze alternative data sources.
• Revolutionizing Credit Assessment: Machine learning models analyze vast datasets to provide more accurate credit evaluations, reducing default risks while improving lending decisions and enhancing financial inclusion for 37.5 million Saudi population.
• Powering Automated Customer Service: AI chatbots and virtual assistants handle routine inquiries and loan applications around the clock, dramatically improving customer experience while reducing operational costs by 45% for financial institutions across the Kingdom.

How Vision 2030 is Revolutionizing Saudi Arabia Consumer Finance Industry

Vision 2030 is fundamentally transforming Saudi Arabia's consumer finance landscape through comprehensive digital innovation and regulatory reforms. The Financial Sector Development Program achieved remarkable progress, with bank credit to the private sector reaching SAR 2,780 billion and growing 13% annually, supporting 4.3% GDP growth in non-oil activities. SAMA's regulatory sandbox received over 500 fintech applications, licensing 261 companies compared to fewer than 20 in 2018, while achieving the ambitious 70% non-cash transaction target two years early in 2023. The Kingdom hosts 280 fintech firms with cumulative funding of SAR 9 billion, creating over 11,000 jobs toward the 18,000 employment target. Open Banking Framework launched in 2022 enables secure API-based data sharing between banks and fintechs, while regulations for BNPL services in December 2023 provide formal structure for this rapidly expanding segment. SME credit share increased from 8.4% to 9.4%, demonstrating inclusive financial access aligned with economic diversification goals beyond oil dependency.

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Saudi Arabia Consumer Finance Market Trends & Drivers:

The market is experiencing unprecedented expansion driven by digital transformation and evolving consumer behaviors. Electronic retail payments now account for 79% of transactions, quadrupling the ratio from a decade ago, with digital payment adoption surging among the Kingdom's young population where 71% are under age 35. Smartphone penetration reached 97%, creating a mobile-first society that embraces digital financial services. Finance companies' lending surged to SAR 96.26 billion, growing 13.6% year-over-year, with personal finance leading at 29% of total lending followed by auto financing at 26% and residential real estate at 24.27%. Credit card finance recorded impressive 52.4% annual growth reaching SAR 1.92 billion. The regulatory environment strengthened through SAMA amendments to Finance Companies Control Law, lowering minimum capital requirements to boost competition and financial inclusion. Bank lending reached SAR 2,752 billion with banking sector assets hitting SAR 4,494 billion, exceeding targets while maintaining robust prudential ratios and strong liquidity positions.

BNPL services are revolutionizing consumer payment preferences and reshaping the lending landscape. The BNPL market achieved remarkable 23% growth during 2021-2024, with adoption skyrocketing as 77% of Saudi consumers now use these services for essential expenses including education, healthcare, and insurance beyond discretionary spending. Major players like Tamara achieved unicorn status with $1 billion valuation following $340 million Series C funding, while Tabby relocated headquarters to Saudi Arabia and acquired digital wallet Tweeq in September 2024, demonstrating strategic commitment to the local market. Tamara secured preliminary SAMA approval in March 2025 for consumer finance licensing, expanding beyond traditional BNPL into direct competition with banks. Central Province anchored by Riyadh captured 31.64% market share through dense retail concentration and tech-savvy consumers. SAMA's comprehensive regulations implemented in December 2023 mandate transparency, creditworthiness checks, and consumer protection, fostering sustainable growth while ensuring responsible lending practices across platforms.

Government housing initiatives and rising consumer aspirations are accelerating secured finance adoption for major purchases. The Kingdom's population growth to 37.5 million creates sustained demand for residential space and personal mobility, with young professionals and families leveraging credit solutions to achieve lifestyle goals. Auto loans grew 18.8% and personal loans expanded 18.6%, reflecting strong consumer confidence and improving cost management across financial institutions. Mortgage products benefited from government support for first-time homebuyers, making housing more accessible while secured loans backed by collateral reduce lender risk, enabling larger amounts at competitive rates. Commercial real estate financing surged 20% to SAR 4.92 billion as business expansion accelerates. The retail segment dominates finance company portfolios, with improved regulatory oversight attracting both conventional banks and specialized lenders. Enhanced digital banking services and mobile applications democratize access across urban and rural areas, with internet penetration approaching 99% enabling seamless online loan applications, instant approvals, and digital account management that meets rising consumer expectations for convenient, efficient financial solutions.

Saudi Arabia Consumer Finance Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Unsecured Consumer Finance
• Secured Consumer Finance

Regional Insights:

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

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Consumer Finance Market

• March 2025: Tamara Finance received preliminary approval from SAMA for consumer finance licensing, enabling expanded credit services beyond traditional BNPL offerings. The license approval positions Tamara to compete directly with traditional banks in personal lending while leveraging existing merchant relationships and customer data.
• January 2025: SAMA granted licenses to two new fintech firms including Tal Finance for debt-based crowdfunding solutions, making it the 12th company in Saudi Arabia to provide such services, while expanding the Kingdom's alternative financing ecosystem for consumers and businesses.

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