Official data shows that in the second quarter of 2024, credit card loans from Saudi banks increased by 21% annually to SR30.04 billion ($8.01 billion).
This is the highest quarterly figure reported and the largest yearly growth observed in a year, according to data from the Saudi Central Bank, better known as SAMA.
Consumer loans, which are usually used for large purchases, have fixed interest rates, are usually paid back in installments, and increased by a meager 2 percent to reach SR452.32 billion during this time.
SAMA states that margin lending, finance leasing, and real estate financing are not included in this category of loans.
Saudi Arabia is more likely than Germany to favor digital and credit card payments, according to a research by consulting firm AlixPartners titled Critical Consumer 2024.
Saudi Arabia’s financing environment is dominated by payment cards as a result of government-led programs for economic inclusion under Vision 2030. The digital transformation and substitution of electronic payments for cash transactions are the main objectives of this strategy.
The COVID-19 pandemic has sped up the introduction of contactless transactions, which has increased the use of cards. The market’s growth is also being fueled by higher retailer acceptability, better infrastructure, and rising banking penetration.
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