RIYADH: As the Kingdom speeds up its transition to digital payments, credit card lending in Saudi Arabia surged to an all-time high of SR31.37 billion ($8.4 billion) in 2024, representing a 16 percent yearly rise. Credit card lending now makes up 6.66 percent of all consumer finance, more than doubling in the last six years, according to the most recent data from the Saudi Central Bank, generally known as SAMA.
The consistent increase supports the Kingdom’s transition to a contemporary, cashless financial ecosystem and is consistent with Vision 2030’s call for digital payments and fewer cash transactions. Additionally, according to SAMA data, total consumer loans in 2024 totalled SR471 billion, an increase of 6.6% year over year. Margin lending, finance leasing, and real estate financing are not included in this.
The largest growth among lending categories was in education funding, which increased 9.6% to SR8.17 billion. Loans for travel and tourism came next, increasing 8.1 percent to SR992 million, while loans for durable goods and furnishings grew 7.97 percent to SR8.52 billion.
The largest recognised segment, which accounted for 2.5 percent of all consumer loans at SR11.71 billion, was still vehicle and private transportation loans. Interestingly, “Others” accounted for 91.8 percent of consumer loans.
Consumer loans, which are frequently used for significant expenses like car purchases and schooling, usually have fixed repayment plans and lower interest rates. Credit card lending, on the other hand, functions as a revolving credit facility that lets borrowers access money up to a certain amount and has variable interest rates depending on how much is used.
Also Read:
The Humanitarian Efforts of KSrelief Are Praised by The Tajik Embassy
Media Minister: Saudi Arabia is Becoming Into a Free Worldwide Incubator For Innovative Ideas
