Report Overview

Saudi Arabia Digital Lending Market - Industry Trends & Forecast Report, 2029

Saudi Arabia Digital Lending Market size was estimated at USD 41.68 billion in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia Digital Lending Market is projected to grow at a CAGR of 15.33% reaching a value of USD 98.09 billion by 2029. Major growth drivers for the Saudi Arabia Digital Lending Market include the increasing convenience offered by fintech companies, the growing accessibility of loans, and rising demand within the personal loan segment. The continuous implementation of Saudi Vision 2030 underscores the importance of digitization to enhance efficiency across diverse industries. Within the BFSI sector, the swift adoption of digitization is expediting the loan lending process, offering a more convenient alternative to traditional methods. Significant investments from key players to enhance the infrastructure of Digital Lending platforms, coupled with the increased utilization of advanced technologies such as artificial intelligence, machine learning, and cloud computing, are poised to positively impact the Saudi Arabia Digital Lending market's growth over forecast period. These technologies collectively contribute to a rapid, transparent, and simplified loan application process.

Saudi Arabia Digital Lending Market – Overview

The Saudi Arabia Digital Lending Market refers to the financial landscape within the country where borrowing and lending activities are facilitated through digital platforms and technology. This includes the use of online platforms, mobile applications, and other digital channels to streamline and expedite the loan application, approval, and disbursement processes. The market's growth is often influenced by factors such as the increasing convenience offered by financial technology (fintech) companies, the ease of accessing loans digitally compared to traditional methods, and the demand for digital lending solutions within various segments, particularly the personal loan sector. Additionally, advancements in technologies like artificial intelligence, machine learning, and cloud computing play a significant role in shaping the landscape by providing fast, transparent, and efficient lending experiences. The market is further driven by the ongoing digitization efforts aligned with initiatives like Saudi Vision 2030, which aims to enhance efficiency and performance across different industries through digital transformation.

Saudi Arabia Digital Lending Market

Growth Drivers

Increasing Demand For Digital Channels

The increasing demand for digital lending platforms in Saudi Arabia, as shown by the Fintech Saudi initiative, indicates significant growth. In 2018, there were only 10 Fintech companies in the country, but by 2022, this number surged to 147—a notable 14.7-fold increase. Notably, 37% of these companies are still in the early stages, while 33% have progressed to the commercial phases. Additionally, 30% focus on payments and currency exchange, while 19% concentrate on lending and financing. This data highlights the dynamic growth within Saudi Arabia's fintech sector. For example, Khalid Walid Al-Dhaher from the Saudi Central Bank illustrates this growth, noting that the sector now has 183 financial technology companies as of Q2 2023, achieving 80% of the 2025 goal. The nation is aiming to accelerate payment digitization, and the Regulatory Sandbox currently accommodates 45 fintech firms with a target cumulative investment of SR12.2 billion. The digital economy recorded over 8 billion transactions valued at SR1.6 trillion in 2022. Fintech's pivotal role, especially in NFC payments, aligns seamlessly with Vision 2030, showcasing a robust response to the rising demand for digital channels.

Expanding Reach to Underserved Markets

The Saudi Arabia Fintech Market is currently witnessing sector convergence, a surge in SME lending through online platforms, and the advent of new technologies. This is attributed to non-financial sectors like telecom and media integrating financial solutions into their platforms, intensifying competition for fintech firms. This trend signifies a growing convergence within the fintech sector, making it a major driver for the increased demand in the Digital Lending segment within Saudi Arabia.

Restraints

Data Security and Privacy Concerns

The growth of the digital lending market in Saudi Arabia faces constraints due to heightened concerns over data security and privacy. Potential borrowers are wary of sharing sensitive information online, hampering the widespread adoption of digital lending platforms. Addressing these concerns and implementing robust security measures will be crucial for fostering trust and driving the expansion of the digital lending landscape in the country.

Saudi Arabia Digital Lending Market

Segmental Coverage

Saudi Arabia Digital Lending Market – By Component

By component, the Saudi Arabia Digital Lending Market is bifurcated into Solution and Service segments. The solution segment holds a higher share in the Saudi Arabia Digital Lending Market by component.

Saudi Arabia Digital Lending Market – By Deployment Mode

Based on deployment mode, the Saudi Arabia Digital Lending Market is bifurcated into On-premises and Cloud segments.

Saudi Arabia Digital Lending Market – By Enterprise Size

Based on enterprise size, the Saudi Arabia Digital Lending Market is split into Large Enterprises and Small & Medium-sized Enterprises (SMEs) segments. The SMEs segment holds a higher share in the Saudi Arabia Digital Lending Market by enterprise size. This prominence can be attributed to a surge in digital lending activities tailored to meet the financial needs of SMEs. The integration of online platforms and the utilization of new technologies contribute to the growth of digital lending within the SME sector. As non-financial sectors such as telecom and media increasingly adopt financial solutions, competition among fintech firms intensifies, emphasizing the sector's dynamic nature. The higher share held by the SME segment underscores the vital role of digital lending in facilitating financial support and growth opportunities for small and medium enterprises in Saudi Arabia.

Saudi Arabia Digital Lending Market – By End User

On the basis of end user, the Saudi Arabia Digital Lending Market is divided into Banks, NBFCs, and Credit Unions segments. The banks segment holds the highest share in the Saudi Arabia Digital Lending Market by end user. It can be attributed to the significant adoption of digital lending technologies by banks, reflecting a growing trend in the financial sector. Banks leverage digital platforms to enhance customer experiences, streamline lending processes, and offer convenient online services. The robust presence of banks in the digital lending landscape underscores their pivotal role in driving the market's growth and meeting the evolving demands of borrowers in Saudi Arabia.

Competitive Landscape

Major players operating in the Saudi Arabia Digital Lending Market include Uniint, Lendo Inc, Raqamyah Platform, Tamwel AlOula Company, Platform Company Ltd Tameed Financing, Abdul Latif Jameel IPR Company Limited, and Tamam. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - Al Amthal Financing Co., a prominent SME lending company in Saudi Arabia, partnered with Codebase Technologies and its local partner, Raqmiyat, to launch instant digital lending services in the Saudi market. The collaboration aims to digitize Al Amthal's SME lending operations, utilizing Codebase Technologies' Digibanc platform.

• In September 2023 - Mike Cunningham, former chief strategy and digital officer of Banque Saudi Fransi (BSF), announced the launch of JB, a new digital bank in the Kingdom of Saudi Arabia.

• In August 2023 - Qarar, a leading data analytics and credit decisioning company in the Middle East, and Biz2X, a global fintech provider, formed a strategic joint venture for SME lending in Saudi Arabia. The partnership aims to address the financing gap for SMEs, creating the largest SME lending platform in the country.

Scope of the Report

By Component

• Solution

• Service

By Deployment Mode

• On-premises

• Cloud

By Enterprise Size

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

By End User

• Banks

• NBFCs

• Credit Unions

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Digital Lending Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing demand for digital channels
         2. Expanding reach to underserved markets
      2. Restraints
         1. Data security and privacy concerns
      3. Opportunities
         1. Increased investments in emerging technologies
      4. Challenges
         1. Regulatory challenges
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Digital Lending Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
         1. Solution
         2. Service
      2. By Deployment Mode
         1. On-premises
         2. Cloud
      3. By Enterprise Size
         1. Large Enterprises
         2. Small and Medium-sized Enterprises (SMEs)
      4. By End User
         1. Banks
         2. NBFCs
         3. Credit Unions
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Digital Lending Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Digital Lending Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Uniint
   2. Lendo Inc
   3. Raqamyah Platform
   4. Tamwel AlOula Company
   5. Platform Company Ltd Tameed Financing
   6. Abdul Latif Jameel IPR Company Limited
   7. Tamam
   8. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1.  Primary & Secondary Research
   2.   Quantitative Research
   3.   Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Digital Lending Segmentation

Figure 2       Saudi Arabia Digital Lending Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Digital Lending Market Size, By Value (USD Billion), 2019–2029

Figure 5       Saudi Arabia Digital Lending Market Share, By Component, By Value, 2019–2029

Figure 6       Saudi Arabia Digital Lending Market Share, By Deployment Modes, By Value, 2019–2029

Figure 7       Saudi Arabia Digital Lending Market Share, By Enterprise Size, By Value, 2019–2029

Figure 8       Saudi Arabia Digital Lending Market Share, By End User, By Value, 2019–2029

List of Tables

Table 1        Saudi Arabia Digital Lending Market Size, By Value (USD Billion), 2019–2029

Table 2        Saudi Arabia Digital Lending Market Size, By Component, By Value, 2019–2029

Table 3        Saudi Arabia Digital Lending Market Size, By Deployment Modes, By Value, 2019–2029

Table 4        Saudi Arabia Digital Lending Market Size, By Enterprise Size, By Value, 2019–2029

Table 5        Saudi Arabia Digital Lending Market Size, By End User, By Value, 2019–2029

Table 6        Uniint Company Overview

Table 7        Uniint Financial Overview

Table 8        Lendo Inc Company Overview

Table 9        Lendo Inc Financial Overview

Table 10      Raqamyah Platform Company Overview

Table 11      Raqamyah Platform Financial Overview

Table 12      Tamwel AlOula Company Overview

Table 13      Tamwel AlOula Company Financial Overview

Table 14      Platform Company Ltd Tameed Financing Company Overview

Table 15      Platform Company Ltd Tameed Financing Financial Overview

Table 16      Abdul Latif Jameel IPR Company Limited Company Overview

Table 17      Abdul Latif Jameel IPR Company Limited Financial Overview

Table 18      Tamam Company Overview

Table 19      Tamam Financial Overview