Saudi Arabia’s Credit Card Lending Hits Record $8.4 Billion in 2024

Credit card lending in Saudi Arabia reached an all-time high of SR31.37 billion ($8.4 billion) in 2024, marking a 16% increase compared to the previous year. The surge reflects the Kingdom’s accelerated shift toward digital payments, driven by its Vision 2030 initiative, which aims to reduce cash transactions and create a cashless economy.

According to the latest data from the Saudi Central Bank (SAMA), credit card lending now represents 6.66% of total consumer financing in the country—more than double its share from six years ago. Meanwhile, total consumer loans, excluding real estate financing, leasing, and margin lending, rose to SR471 billion, reflecting a 6.6% annual increase.

Consumer Lending Trends

Among consumer loan categories, education financing experienced the most significant growth, increasing by 9.6% to SR8.17 billion. Loans for tourism and travel followed with an 8.1% rise to SR992 million, while borrowing for furniture and durable goods climbed 7.97% to SR8.52 billion.

Vehicle and private transportation loans remained the largest identified segment, accounting for 2.5% of total consumer loans, or SR11.71 billion. However, the majority of consumer loans—91.8%—fell under the category of “Others”, reflecting a range of unspecified expenses.

Credit Cards Gain Popularity

While credit card lending still accounts for a relatively small share of overall consumer loans, its rapid growth is fueled by several factors, including the increasing availability of Shariah-compliant credit cards. As Saudi Arabia’s banking sector adheres to Islamic principles, demand for interest-free and ethically structured financial products has surged, making credit cards more accessible to a broader consumer base.

Banks have also introduced innovative and flexible payment options to meet customer needs. For instance, the Flexi credit card, launched by the Saudi National Bank in partnership with Mastercard, allows users to split purchases into four interest-free installments, promoting financial flexibility. Promotional offers, including cashback rewards, travel discounts, and zero-fee installment plans, have further driven credit card adoption. American Express Saudi Arabia, for example, provides exclusive benefits on hotel stays and dining, encouraging frequent use.

Digital Transformation Drives Growth

Saudi Arabia’s transition to a cashless economy has played a pivotal role in boosting credit card usage. Government-led initiatives promoting digital payments have led to widespread adoption of contactless payment technologies, enhancing convenience and security while increasing consumer trust in electronic financial services.

Advancements in mobile banking and digital wallets have also contributed to the rise of credit card usage, providing users with secure and accessible payment options. With financial institutions continuing to innovate and the government maintaining its focus on digital transformation, Saudi Arabia’s credit card market is expected to sustain its upward momentum, solidifying its role in the Kingdom’s evolving financial landscape.