Credit extended by finance companies in Saudi Arabia surged to SR96.26 billion ($25.67 billion) in 2024, marking a 13.6% increase year-on-year, according to the Saudi Central Bank (SAMA).
- Personal finance made up 29% of total lending
- Auto financing accounted for 26%
- Residential real estate took up 24.27%
- Credit card finance saw the fastest growth at +52.4%
- Commercial real estate lending rose 20%
Retail lending remained dominant, while MSMEs (micro, small & medium enterprises) represented 19% of total credit โ nearly double their share in traditional bank lending.
Net income in the sector rose 72.13% to SR2.86 billion, with ROA hitting 4.13% and ROE at 9.58%, reflecting improved profitability and efficiency.
Fintech-fueled growth:
Regulatory reforms, including lower capital requirements for SME lenders and BNPL providers, have helped fuel expansion. By the end of 2024, 65 licensed finance companies were active in the Kingdom.
Notably, Tamara, Saudi Arabiaโs first fintech unicorn, became the latest to receive a consumer finance license from SAMA.
With BNPL adoption reaching 77% of Saudi consumers, the rise of debt-based crowdfunding and digital lenders is reshaping financial access โ especially for underserved individuals and SMEs โ in line with Vision 2030โs financial inclusion goals.