Today: September 29, 2016, 8:47 am

Saudi Arabia Consumer Lending Market: New market research released
Consumer Lending in Saudi Arabia - a new market research report on 2014-04-10 14:21:02
In 2013 the Saudi Arabian economy is estimated to achieve a strong growth rate in light of high oil prices, which boosted government spending. The over-performance of the local economy enhanced consumers´ and businesses´ confidence. This in turn led to further expansion of consumer and investment spending, creating demand for consumer and corporate credit.

Demand for housing is growing more than ever in the Kingdom due to rapid population growth. The larger cities are expected to grow faster in terms of population. Such high and increasing demand for housing is creating a problem for both the government and the lending establishments in the Kingdom. In 2011 the Saudi Arabian Government issued its strategy to solve the housing problem in the country. The decisions made include the allocation of around SAR305 billion to ease the burden of high property prices and housing market imbalances, of which SAR250 billion will be managed by the newly established ministry, the Ministry of Housing (MoH), for the construction of 500,000 housing units across the country.

Lenders in Saudi Arabia engage in major competition to attract customers in all categories of the consumer credit market, especially in personal lending. Banks provide customers with lending programmes, including offers such as the option of refinancing a loan after a certain period of time. Local banks remain dominant in the consumer credit market in Saudi Arabia.

Traditionally, Saudi banks classified their consumer lending products in three main categories: personal loans, auto loans, and home purchase loans. Recently the market has witnessed more product branding, such as educational loans. Over the forecast period product branding is expected to be increasingly used as a competitive tool that helps attract more customers, as branding enables customers to recognise their exact needs.

Over the forecast period economic conditions are expected to remain favourable, with expansionary fiscal policy projected in light of the upward movement of oil prices, which includes launches of additional infrastructure projects and economic cities. Banks´ asset quality is expected to improve, with an increasing non-performing loans coverage ratio. Furthermore, liquidity levels and the low interest rate environment, as well as profit maximisation, are expected to stimulate consumer credit lending. Demand is also expected to expand further over the forecast period in light of increased confidence in the local economy, which will boost spending levels.

Click for report details: ..

Browse all Finance and Banking Market Research Reports ..

Browse all Finance and Banking Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 589 Words
Related Articles
More From Finance
P2P lending platform Monexo partners with IDBI-Trusteeship [..]
For Immediate Release: 2nd September 2016 MUKESH BUBNA, CEO Monexo Fintech Pvt Limited P2P [..]
Day Trade to Win New September Class [..]
Sold Out? New Class Added – On September 6, 2016, is launching a brand new eight-week trading boot camp [..]
FTM (Forget The Market) Reopens 3 Shares [..]
Port Vila, Vanuatu, 28th July 2016 - Investment firm FTM today announced the reopening of three separate share options, projected [..]
Ex-Citibanker Launching Online P2P marketplace in India [..]
A study conducted by World Bank shows that MSMEs in India face an estimated credit gap of INR 20.9 trillion [..]
New Frontier Portfolios Top Morningstar Rankings
New Frontier’s global strategic portfolios topped the Global Balanced Strategic/All-Inclusive category of the latest Morningstar ETF [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.