Saudi Arabia Retail Banking Market Size

Statistics for the 2023 & 2024 Saudi Arabia Retail Banking market size, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Retail Banking size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of Saudi Arabia Retail Banking Industry

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Saudi Arabia Retail Banking Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 6.00 %
Market Concentration Medium

Major Players

Saudi Arabia Retail Banking Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Retail Banking Market Analysis

The Saudi Arabia Retail Banking Market is expected to register a CAGR of 6% during the forecast period(2024-2029).

Retail lending has been a high-growth segment in Saudi Arabia in recent years and a key driver behind the banking sector’s growth. While it mitigated the impact of the COVID-19 pandemic on Saudi Arabian banks' financial profiles, risks are emerging. Many Saudi Arabian banks have historically ignored retail lending but have expanded significantly recently and are now the primary engine of credit growth. The fast growth in this segment is expected to continue, underpinned by strong credit demand and support from government authorities. Various factors support the high growth, including strong margins on retail products and the Saudi government placing homeownership at the center of its Vision 2030 strategic plans. This has led to vast programs of government subsidies that boost margins and guarantees for retail mortgages.

Returns on retail portfolios are underpinned by unusually low funding costs, with retail loans largely funded by retail non-interest-bearing deposits (NIBs). The absence of caps on retail loan pricing also contributes to high margins. Therefore, banks with more retail lending have profitability metrics registering at the higher end. Saudi banks have been actively chasing retail lending, adjusting their strategies, and increasing their appetite for this segment.

The impact of the COVID-19 pandemic on Saudi Arabian banks was contained. At the same time, pressures on the operating environment eased, and economic activity gradually recovered, supported by higher oil prices.

Saudi Arabia Retail Banking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)