KSA Personal Finance Market Outlook to 2026F Driven by Growing Digitalization and Increased Consumption Needs

This report provides a comprehensive analysis of the potential of the Personal Finance Industry in KSA. The report also covers the overview and genesis of the industry, market size in terms of outstanding credit and number of loans.

Its market segmentation by purpose of loan, by supplier, by tenure of loan, by booking mode, by geography, by nationality of borrower, by employment of borrower; growth enablers and drivers, challenges and bottlenecks, trends driving digital adoption; regulatory framework; industry analysis, competitive landscape including competition scenario, market shares of major players on the basis of outstanding credit. The report concludes with future market projections of each segmentation and analyst recommendations.

Market Overview:

The Personal Finance Market in KSA is in the growth stage, being driven by banks and NBFCs and introduction of Fin-Tech companies. With new entrants, strict changes in policies can be seen related to insolvency and other parameters. With the growing number in working women population, digitalization of personal financing and supportive government policies, the market is expected to grow over the next 4 years.

According to publisher estimates, the KSA Personal Finance Market is expected to grow at a CAGR of 15.7% in the forecasted period of 2022-2026F, owing to the New Government Policies under Vision 2030 and New Players in the Market.

Outstanding Credit in KSA Personal Finance Market, 2017-2026F

Key Trends by Market Segments:

• By Purpose of Loan: The majority of Saudi Arabians take personal loans for the purpose of a wedding. Saudi Arabia Vision 2030 envisions to increase the level of healthcare facilities by privatization which will drive the purpose of loan towards healthcare
• By Geography: Riyadh is the hub of offices in Saudi Arabia due to which the purchasing power of people residing in Riyadh is high; however other regions are also on the curve of development

Competitive Landscape

Conclusion

The personal finance market in Saudi Arabia has higher than average growth opportunity compared to other GCC countries, given the relative under penetration which offers a huge opportunity for Non-Banking Financial Institutions. Growth rate of total number of loans taken is going to increase over the period as financing becomes easier, internet user penetration rates increase. Commitment of SAMA to enable market entry of FinTechs is expected to foster development of an innovative ecosystem in Financial Services