Consumer Finance in Saudi Arabia
Euromonitor International's Consumer Finance in Saudi Arabia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 139 | Publication date: Mar 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Boost in the economy increases consumer spending
Saudi Arabia comprises the largest economy in the whole of the Middle East, with multi-billion dollar economic development projects under way and many more in the planning stage in both the public and private sectors. The Kingdom’s real estate construction sector continues to be fuelled by the increasing population, which has grown eight-fold over the last two decades, and is expected to continue to rise over the forecast period. These large multi-billion dollar public and private projects are under way in order to provide the necessary infrastructure, housing facilities, education and other essential services needed to support this massive growth. As a result of the new opportunities created by the boom, consumer expenditure increased significantly over the review period, and is expected to maintain the positive trend over the forecast period.
Saudi consumers now better informed about consumer finance
In order to penetrate the financial cards and payments market, Saudi Banks are competing for market share as well as aiming to increase the penetration level of debit, credit and charge cards. They are educating their customers on the use and advantages of debit and credit cards. Saudi banks are also trying to penetrate different and some formerly untapped segments, such as women, with the aim of extending the market from the masses and students to the elite of affluent customers. It is likely that during the forecast period a significant percentage of bankable Saudi consumers will be issued with a credit card. Currently, the penetration rate of credit cards in Saudi Arabia is relatively low. Therefore, there is significant room for growth and expansion among existing bank and other credit institutions, as well as potential newcomers.
Kingdom’s massive population growth behind increase in debit cards
Population growth and surging oil revenues are the key dynamics stimulating both the economy and consumer spending. The Saudi government is encouraging banks to issue debit cards to all government employees and transfer their salaries directly to the banks. As a result of this policy, a significant increase in the bankable population was seen over the review period. This trend is likely to continue over the forecast period, as more people enter the job market. Debit transactions are increasing significantly and they will continue to increase over the forecast period, as the booming economy of Saudi Arabia is allowing consumers to purchase new cars or homes that they wish to equip with domestic electrical appliances, consumer electronics, home furniture and other home items.
Huge shopping malls offer excitement in shopping
With the massive growth in the economy, shopping malls in Saudi Arabia are mushrooming in all cities. The Kingdom’s shopping malls serve two purposes: shopping and entertainment. Shopping centres, which are fully air-conditioned, are increasingly part of the lifestyle. Therefore, shopping is not just an activity everyone does, it is an activity that everyone enjoys and has a stimulating effect on card payment transactions.
Positive trend in the use of credit cards and charge cards
Saudi Arabia is relatively cash-based society, but is expected to change rapidly to a card society over the forecast period. As little as 20 years ago, almost no one had credit cards and almost no merchant accepted them. Previously, people would purchase a car with a shopping bag or two full of currency, but today more consumers are taking advantage of developing financial services. Credit cards are becoming more popular in Saudi Arabia, and are expected to reach a high level of penetration over the forecast period. It is expected that over the next few years, a significant percentage of newly banked consumers will carry and use credit or charge cards in the Kingdom.
Table of contents
CONSUMER FINANCE IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Boost in the economy increases consumer spending
Saudi consumers now better informed about consumer finance
Kingdom’s massive population growth behind increase in debit cards
Huge shopping malls offer excitement in shopping
Positive trend in the use of credit cards and charge cards
KEY TRENDS AND DEVELOPMENTS
Healthy economic growth increases consumer spending
Awareness of financial services increasing among Saudis
Growth in population boosts consumer finance
Boost in housing market helps credit and charge cards
Major shopping malls offer excitement and entertainment to consumers
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN SAUDI ARABIA
EXECUTIVE SUMMARY
Consumer Spending on the Rise Due to Budget Surplus
Easier Loan Terms Give Boost to Consumer Lending
Increase in Personal Income Raises Consumer Spending
Introduction of New Mortgage Law Will Increase Housing Finance
Aggressive Lending by Saudi Banks
KEY TRENDS AND DEVELOPMENTS
Robust Saudi Economy Boosts Housing Market
Ease of Credit Boosts Consumer Lending
Increase in Personal Income Raises Consumer Spending
Mortgages on the Horizon
Aggressive Lending by Saudi Banks
MARKET DATA
Table 24 Consumer Lending by Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending by Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending by Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending by Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending by Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending by Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending by Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending by Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
AL RAJHI BANKING & INVESTMENT CORP - FINANCIAL CARDS AND PAYMENTS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Al Rajhi Banking & Investment Corp: Key Facts
Summary 4 Al Rajhi Banking & Investment Corp: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Al Rajhi Banking & Investment Corp: Competitive Position 2007
NATIONAL COMMERCIAL BANK - FINANCIAL CARDS AND PAYMENTS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 National Commercial Bank: Key Facts
Summary 7 National Commercial Bank: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 National Commercial Bank: Competitive Position 2007
RIYADH BANK - FINANCIAL CARDS AND PAYMENTS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Riyadh Bank: Key Facts
Summary 10 Riyadh Bank: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Riyadh Bank: Competitive Position 2007
SAMBA FINANCIAL GROUP - FINANCIAL CARDS AND PAYMENTS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 SAMBA Financial Group: Key Facts
Summary 13 SAMBA Financial Group: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 SAMBA Financial Group: Competitive Position 2007
SAUDI BRITISH BANK - FINANCIAL CARDS AND PAYMENTS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 SABB: Key Facts
Summary 16 SABB: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 SABB: Competitive Position 2007
ATM TRANSACTIONS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
CONSUMER CREDIT IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 Consumer Credit by Sector: Outstanding Balance: Value 2003-2008
Table 116 Consumer Credit by Sector: Outstanding Balance: % Value Growth 2003-2008
Table 117 Consumer Credit by Sector: Gross Lending: Value 2003-2008
Table 118 Consumer Credit by Sector: Gross Lending: % Value Growth 2003-2008
Table 119 Forecast Consumer Credit by Sector: Outstanding Balance: Value 2008-2013
Table 120 Forecast Consumer Credit by Sector: Outstanding Balance: % Value Growth 2008-2013
Table 121 Forecast Consumer Credit by Sector: Gross Lending: Value 2008-2013
Table 122 Forecast Consumer Credit by Sector: Gross Lending: % Value Growth 2008-2013