RIYADH: Following an annual increase of 12.53 percent, credit card loans from Saudi banks recorded their second-highest number ever in the first quarter of 2025. The Saudi Central Bank, or SAMA, claims that this borrowing of SR30.66 billion ($8.18 billion) is just 2% less than the record high set at the end of 2024. Additionally, according to SAMA data, consumer loans increased by 6.41 percent to SR479.78 billion during that time.
More than 90% of consumer loans come into the general “other” category, which covers debt consolidation, individual family costs, and any borrowing that isn’t specifically categorised under one of the other categories. This suggests that a large number of Saudis utilise personal loans for a variety of purposes, such as weddings and house remodelling, but each of those particular applications accounts for a comparatively tiny portion of the total numbers.
The credit card market is expanding quickly due to a number of causes. The national movement towards a cashless society under Vision 2030, which has seen SAMA enact laws to encourage electronic payments and lessen reliance on cash, is a major motivator. This entails encouraging fintech innovation, requiring companies to accept electronic payments, and growing point-of-sale infrastructure. As a consequence, according to a SAMA report released in April, 79 percent of all retail transactions in 2024 used electronic, card, or digital payments, up from 70 percent the previous year.
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