Report Overview

Saudi Arabia Peer-to-Peer (P2P) Lending Market - Industry Trends & Forecast Report, 2029

Saudi Arabia peer-to-peer (P2P) lending market size was estimated at USD 4.38 billion in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia peer-to-peer lending market is projected to grow at a CAGR of 30.45% reaching a value of USD 27.96 billion by 2029. Major growth drivers for Saudi Arabia peer-to-peer lending market include Increasing technologically advanced with added transparency over traditional banking system, lesser operating cost & low material risk and growing modernization of digital technologies in the BFSI sector. Since the last few decades, the money lending markets have experienced many significant developments. Due to banks' rigorous credit rules, the money lending system is in high demand from small and medium-sized organizations (SMEs) and consumers. This drives users to P2P lending sites, which have comparatively speedier credit approval. Also, the implementation of digitalization in the banking sector increases transparency over traditional banking systems, which is projected to boost market growth. P2P lending is one of Saudi Arabia's fastest growing fintech platforms. Religious sensitivities are the key cause for the challenges in P2P lending in Saudi Arabia. The tremendous rise of the financial sectors has attracted an increasing number of investors to this region. Banks and corporations that have previously avoided investing in Fintech are now doing so. When compared to the traditional approach, peer-to-peer lending services are more transparent and less expensive. Therefore, all these aspects are expected to boost the expansion of the overall market during the period in analysis.

Saudi Arabia Peer-to-Peer Lending Market– Overview

Peer-to-peer lending (P2P) is the process of lending money to individuals or businesses through online services that match lenders and borrowers. P2P services are less expensive than traditional banking institutions. As a result, lenders might earn higher returns than investors and savers offered by banks and other institutions. This money lending procedure is also known as "crowd-lending". Even though the majority of money is provided to businesses, peer to peer lending is mostly an unsecured sort of personal loan. A secured loan, on the other hand, can occasionally be granted by employing grandiose assets such as jewelry, vintage automobiles, buildings, fine artworks, watches, or other company holdings. Peer-to-peer lending takes many forms, including student loans, commercial and real estate loans, payday loans, secured company loans, leasing, and factoring. P2P websites protect investors from market losses caused by late payments on loans by reserving funds.

Saudi Arabia Peer-to-Peer Lending Market

Growth Drivers

Growing Adoption of Digital Technologies in BFSI Sector

The advancement of digital technology in the BFSI sector has enabled a significant number of borrowers and lenders worldwide to participate in a peer-to-peer lending system. The trend will continue to influence the evolution of the peer-to-peer lending business. Peer-to-peer lending systems will become a viable alternative to traditional financial intermediaries for loans as P2P platforms evolve toward customization. The increased popularity of crowd funding is broadening the scope of revenue in the peer-to-peer lending business.

Restraints

Risks Associated with Credit and Lending

The majority of peer-to-peer lending providers do not lend their own money, putting investors at risk. This also implies that investors may lose their entire investment if borrowers fail to make loan repayments. This risk increases gradually as the investor expects relatively high returns on their investments. Furthermore, peer-to-peer lending providers claim and rate borrowers' ability to repay the loan and creditworthiness based on a variety of factors. All of these ratings, however, are inconsistent and do not correspond to ratings provided by an external credit rating agency. As a result, these factors are expected to stifle market growth shortly.

Impact of COVID -19 on Saudi Arabia Peer-to-Peer Lending Market

COVID 19 had a detrimental impact on P2P market. P2P faced significant headwinds in 2020, necessitating a rebuilding of investor trust. The Middle East's Fintech sector is steadily gaining traction, with the number of enterprises and investments increasing in recent years.

Saudi Arabia Peer-to-Peer Lending Market

Segmental Coverage

Saudi Arabia Peer-to-Peer Lending Market – By Business Model

By business model, Saudi Arabia Peer-to-Peer Lending Market is bifurcated into Traditional Lending and Alternate Marketplace Lending. The traditional lending segment held the highest market share in 2021. One of the primary advantages of traditional P2P lending is that it can offer borrowers credit at potentially lower interest rates than a traditional financial institution. It may also provide a larger return on investment to lenders than other types of financial products, such as savings accounts or deposit certificates.

Saudi Arabia Peer-to-Peer Lending Market – By Loan Type

Based on loan type, Saudi Arabia Peer-to-Peer Lending Market is divided into Consumer Credit Loans, Small Business Loans, Students Loans, and Real Estate Loans. Small business loans segment held the highest market share and this trend is expected to continue in the following years. P2P lending platforms can be an excellent source of small company loans, especially for companies that do not qualify for regular bank or financial institution financing. P2P lending platforms usually have softer lending rules than traditional lenders and may be able to provide credit to small firms at cheaper interest rates. Student loans, on the other hand, are predicted to expand at the quickest CAGR owing to a growth in the number of students studying abroad.

Saudi Arabia Peer-to-Peer Lending Market – By End User

Based on end user, Saudi Arabia Peer-to-Peer Lending Market is divided into Business and Personal. Business segment held the highest market share. Businesses that borrow money through peer-to-peer lending platforms may be able to access credit more quickly and at lower interest rates than traditional lending channels. Businesses, on the other hand, must carefully assess the risks and potential disadvantages of P2P lending, such as the lack of FDIC insurance and the danger of default. Before committing to a loan, compare offers from various P2P lending platforms and conduct extensive research on the platform's reputation and track record.

Competitive Landscape

Major players operating in Saudi Arabia Peer-to-Peer Lending Market include Tabby, Lendo, Raqamyah, Tammwel, Forus, Abdul Latif Jameel United Finance, Tamam, and Raya Financing Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Business Model

• Traditional Lending

• Alternate Marketplace Lending

By Loan Type

• Consumer Credit Loans

• Small Business Loans

• Students Loans

• Real Estate Loans

By End User

• Business

• Personal

By Region

• North & Central Region

• Eastern Region

• Western Region

• Southern Region

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Peer-to-Peer (P2P) Lending Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Lesser Operating Cost & Low Material Risk
         2. Technologically Advanced with added Transparency over Traditional Banking System
         3. Modernization of digital technologies in the BFSI sector
      2. Restraints
         1. Risks of losing all money
         2. Lesser Advancement of P2P Lending Benefits among Peoples
      3. Opportunities
         1. Growing market & Rise of Small Business Lending
         2. Innovation in P2P platforms toward customization
      4. Challenges
         1. Higher Government Regulation
         2. Risk of Frauds
   3. Technology 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 Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
         1. Traditional Lending
         2. Alternate Marketplace Lending
      2. By Loan Type
         1. Consumer Credit Loans
         2. Small Business Loans
         3. Students Loans
         4. Real Estate Loans
      3. By End User
         1. Business
         2. Personal
      4. By Region
         1. North & Central Region
         2. Eastern Region
         3. Western Region
         4. Southern Region
5. North & Central Region Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
      2. By Loan Type
      3. By End User
6. Eastern Region Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
      2. By Loan Type
      3. By End User
7. Western Region Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
      2. By Loan Type
      3. By End User
8. Southern Region Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
      2. By Loan Type
      3. By End User
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Peer-to-Peer (P2P) Lending Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on Saudi Arabia Peer-to-Peer (P2P) Lending Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook and SWOT Analysis)
    1. Tabby
    2. Lendo
    3. Raqamyah
    4. Tammwel
    5. Forus
    6. Abdul Latif Jameel United Finance
    7. Tamam
    8. Raya Financing Company
    9. Other prominent players
12. Key Strategic Recommendations
13. 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 in case of non-listed companies will be provided as per availability

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

List of Figures

Figure 1   Saudi Arabia Peer-to-Peer (P2P) Lending Market Segmentation

Figure 2   Saudi Arabia Peer-to-Peer (P2P) Lending Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2022

Figure 4   Saudi Arabia Peer-to-Peer (P2P) Lending Market Size, By Value (USD Billion), 2019−2029

Figure 5   Saudi Arabia Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019−2029

Figure 6   Saudi Arabia Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019−2029

Figure 7   Saudi Arabia Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019−2029

Figure 8   Saudi Arabia Peer-to-Peer (P2P) Lending Market Share, By Region, By Value, 2019−2029

Figure 9   North & Central Region Peer-to-Peer (P2P) Lending Market Size, By Value (USD Billion), 2019−2029

Figure 10 North & Central Region Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019−2029

Figure 11 North & Central Region Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019−2029

Figure 12 North & Central Region Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019−2029

Figure 13 Eastern Region Peer-to-Peer (P2P) Lending Market Size, By Value (USD Billion), 2019−2029

Figure 14 Eastern Region Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019−2029

Figure 15 Eastern Region Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019−2029

Figure 16 Eastern Region Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019−2029

Figure 17 Western Region Peer-to-Peer (P2P) Lending Market Size, By Value (USD Billion), 2019−2029

Figure 18 Western Region Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019−2029

Figure 19 Western Region Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019−2029

Figure 20 Western Region Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019−2029

Figure 21 Southern Region Peer-to-Peer (P2P) Lending Market Size, By Value (USD Billion), 2019−2029

Figure 22 Southern Region Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019−2029

Figure 23 Southern Region Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019−2029

Figure 24 Southern Region Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019−2029

List of Tables

Table 1       Saudi Arabia Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019−2029

Table 2       Saudi Arabia Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019−2029

Table 3       Saudi Arabia Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019−2029

Table 4       Saudi Arabia Peer-to-Peer (P2P) Lending Market Size, By Region, By Value, 2019−2029

Table 5       North & Central Region Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019−2029

Table 6       North & Central Region Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019−2029

Table 7       North & Central Region Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019−2029

Table 8       Eastern Region Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019−2029

Table 9       Eastern Region Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019−2029

Table 10     Eastern Region Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019−2029

Table 11     Western Region Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019−2029

Table 12     Western Region Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019−2029

Table 13     Western Region Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019−2029

Table 14     Southern Region Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019−2029

Table 15     Southern Region Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019−2029

Table 16     Southern Region Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019−2029

Table 17     Tabby Company Overview

Table 18     Tabby Financial Overview

Table 19     Lendo Company Overview

Table 20     Lendo Financial Overview

Table 21     Raqamyah Company Overview

Table 22     Raqamyah Financial Overview

Table 23     Tammwel Company Overview

Table 24     Tammwel Financial Overview

Table 25     Forus Company Overview

Table 26     Forus Financial Overview

Table 27     Abdul Latif Jameel United Finance Company Overview

Table 28     Abdul Latif Jameel United Finance Financial Overview

Table 29     Tamam Company Overview

Table 30     Tamam Financial Overview

Table 31     Raya Financing Company Overview

Table 32     Raya Financing Company Financial Overview