While Saudi Arabia anticipates sharp recession in 2020, consumer lending is expected to grow more strongly compared to previous years of the review period, supported by ongoing growth in mortgages/housing but also as a result of the strong performance of card lending. Saudi Arabia’s strict lockdown following the outbreak of COVID-19 limited the time people were permitted to go out of their homes each day and closed most retail and foodservice outlets, with the exception of some stand-alone retail shops, grocery and pharmaceutical stores, and restaurants that could provide home delivery or takeaway services.
Saudi Arabia locked down the capital Riyadh and its Islamic holy cities of Makkah and Madinah from 25 March. With the borders of the cities closed and a daily curfew in place, travel restrictions were also imposed on 13 regions.
In Saudi Arabia, consumer lending in 2020 is expected to continue a strong upward trend, due to government support. Consumer confidence to take short-term loans was expected to slow down temporarily as the full impact of COVID-19 remained to be seen.
Mortgages/housing is expected to show ongoing strong growth in 2020, with lenders obtaining greater capacity to offer new mortgages due to a unique refinancing deal in the kingdom. Saudi Arabian citizens have long experienced difficulties acquiring housing, there being an acute shortage, or affording it.
Mortgages/housing gross lending is expected to grow more strongly in 2020 compared to 2019, the increase being attributed to the “Sakani” scheme introduced by the ministry of housing which aims to increase home ownership amongst Saudi Arabians to 70%. Housing finance contracts have seen steady growth due to the housing programme, which is part of the kingdom’s Vision 2030.
Over the forecast period, growth in consumer lending will be slightly slower than in the review period due to the economic impact of COVID-19 and a greater degree of consumer caution following job losses or pay cuts in the aftermath of the pandemic. The outstanding balance is expected to grow faster than gross lending over the forecast period as it will be some time before consumers are in a position to pay back loans easily.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Lending industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Consumer Lending research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page