​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level

​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level
Many consumers are comfortable using credit cards to buy now and pay later, especially with the availability of installment plans.
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Updated 30 May 2025
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​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level

​​Digital shift keeps Saudi credit card borrowing above $8bn and just 2% below record level

RIYADH: Credit card loans from Saudi banks posted their second-highest figure on record in the first quarter of 2025, after an annual rise of 12.53 percent.

According to the Saudi Central Bank, also known as SAMA, this borrowing of SR30.66 billion ($8.18 billion) is just 2 percent below the all-time peak recorded at the end of 2024.

SAMA figures also revealed that consumer loans reached SR479.78 billion in what was a 6.41 percent rise during the same period. 

The vast majority – over 90 percent – of consumer lending falls into a broad “other” category, which includes debt consolidation, personal family expenses, or any borrowing not classified under the specific purposes.

This indicates that many Saudis take personal loans for a range of needs, from home renovations to weddings, but each of those specific uses is a relatively small slice of the overall figures.

Multiple factors are supporting the rapid growth of the credit card segment. A central driver is the national push toward a cashless society under Vision 2030, which has seen SAMA implementing policies to promote electronic payments and reduce dependence on cash.

This includes expanding point-of-sale infrastructure, mandating that businesses accept electronic payments, and fostering fintech innovation. As a result, 79 percent of all retail transactions in 2024 were electronic, card or digital payments, up from 70 percent the year before, according to an April release by SAMA.

In parallel, banking penetration has expanded, with nearly all bank cards in the Kingdom now enabled for contactless payments. By 2023, 98 percent of in-person card transactions were contactless — up from just 4 percent in 2017— according to Visa executive Andrew Torre, speaking to Arab News in October.




There is a push toward a cashless society under Vision 2030. Shutterstock

The COVID-19 pandemic accelerated this shift to tapping cards and phones, ingraining cashless habits. With nearly 50 million payment cards in circulation and a decline in ATM usage, the ecosystem is primed for card spending over cash.

Another factor is consumer behavior and economic policy. Strong consumer spending in Saudi Arabia — supported by economic growth and initiatives to boost household income — has encouraged more use of credit for purchases.

Rather than delaying purchases, many consumers are comfortable using credit cards to buy now and pay later, especially with the availability of installment plans.

Additionally, banks and payment networks are actively marketing credit cards with attractive promotions. Cashback deals, reward points, airline miles, and no-fee installment offers are abundant, which incentivizes consumers to use credit cards for both large and small purchases.

The entry of Shariah-compliant credit cards has also played a role. By addressing religious sensitivities, Islamic banks have made credit cards acceptable to a wider customer base that previously avoided interest-based products.

Furthermore, the growth of e-commerce and digital services in Saudi Arabia has naturally increased credit card adoption. Online retailers, food delivery apps, ride-hailing, and travel platforms often work best with card payments, so as these services proliferate, so does card usage.

Consumer loan usage and slower growth trends

Credit cards and personal consumer loans differ fundamentally in structure, usage, and cost. Consumer loans in Saudi Arabia are typically taken as a fixed amount to be repaid in installments over a set term, usually at relatively lower interest or profit rates.

They are often used for significant expenses like buying a car, financing education, or other big-ticket needs, and come with a structured repayment plan that helps borrowers budget effectively.

By contrast, a credit card provides a revolving credit line up to a predefined limit, with no fixed repayment period as long as the borrower makes minimum payments.

Traditional consumer loans, which are often called personal loans, remain much larger in absolute terms than credit card debt in Saudi Arabia, but their growth has been relatively sluggish in recent quarters.

These loans — which exclude mortgages — totaled SR471 billion by the end of 2024, and saw annual growth in the mid-single digits compared to double-digit growth for credit cards.

In early 2024, growth was even slower. In the first quarter, consumer lending was up less than 1 percent year-on-year, and in the second quarter around 2 percent, before accelerating later in the year according to SAMA data.




Saudi Central Bank. File

The uses of consumer loans are generally for big one-time expenditures or needs. The largest defined sub-category is financing for vehicles, which accounted for roughly 2.5 percent to 3 percent of total consumer loans in 2024. Other specific purposes include education loans and loans for furniture and durable goods, and vehicle and private transport means.

The recent slower growth of consumer loans compared to credit cards can be attributed to a number of factors.

High interest rates over 2022 to 2023, as global rates climbed, made borrowing via fixed loans less attractive, potentially dampening demand. By contrast, credit card lines were often already in place and could be tapped without a new loan application.

Another factor is the growing availability of credit card installment plans and Buy Now, Pay Later services, which are increasingly used to cover expenses that previously required personal loans. 

With zero-interest installment offers and flexible repayment options — particularly appealing to younger consumers — many now prefer to finance mid-sized purchases through these tools rather than committing to long-term bank loans.

All of this has led to personal loan growth being moderate. Nonetheless, consumer loans did rise in absolute terms, primarily driven by continued needs for cars, education, and other big expenses. 

The credit card segment’s growth outpaced consumer loans by a wide margin, highlighting a shift in how Saudis finance their spending toward more flexible, short-term credit and digital payment tools, and slightly away from traditional fixed personal borrowing.


Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts
Updated 22 June 2025
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Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security.

The agreement, inked between Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported.

The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region’s financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units.

The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations.

The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait’s exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity.

Officials from both countries highlighted the MoU’s role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance.

The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors.

In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom’s mining industry.

Alkhorayef underscored the sector’s importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion.

Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.


Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Closing Bell: Saudi main index edges down 0.34% to close at 10,574
Updated 22 June 2025
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Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Closing Bell: Saudi main index edges down 0.34% to close at 10,574

RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Sunday, falling 36.44 points, or 0.34 percent, to close at 10,574.27.

Total trading turnover reached SR3.72 billion ($991 million), with 134 stocks posting gains and 102 declining.

The Kingdom’s parallel market, Nomu, also recorded a slight dip, losing 27.14 points, or 0.10 percent, to settle at 26,148.69, as 34 stocks advanced and 39 retreated. Meanwhile, the MSCI Tadawul 30 Index dropped 5.34 points, or 0.39 percent, to finish at 1,361.80.

Alistithmar AREIC Diversified REIT Fund was the best-performing stock of the session, with its share price rising 10 percent to SR8.25. Al Sagr Cooperative Insurance Co. followed with a 9.96 percent increase to SR12.36, while Knowledge Economic City climbed 5.36 percent to close at SR12.98.

On the losing side, Retal Urban Development Co. saw the steepest decline, falling 5.10 percent to SR13.02. Flynas Co. dropped 4.13 percent to SR74.20, and Saudi Chemical Co. declined 3.85 percent to SR6.24.

Shares of Hawiya Identity Auctions began trading on Nomu at SR13 per share. According to a Tadawul statement, the offering comprised 2.4 million shares, with Derayah Financial Co. acting as lead manager.

Gas Arabian Services Co. announced the signing of a joint venture agreement with Italy’s BONOMI Co. to establish a valve manufacturing company in the Kingdom.

The new company will have a capital of SR5 million, with BONOMI holding a 60 percent stake and Gas Arabian Services owning 40 percent.

The Saudi firm will fund its SR2 million share from internal resources. The deal is expected to have a long-term positive financial impact, though it remains subject to regulatory approvals and the fulfillment of conditions outlined in the agreement. Gas Arabian Services shares closed at SR15, up 0.40 percent.

Mayar Holding Co. revealed that its subsidiary, NewPlast Co., has signed a two-year memorandum of understanding with Avant Sports to produce plastic chairs for sports stadiums.

The chairs will be manufactured at NewPlast’s Riyadh facility and will meet international and FIFA standards. The agreement supports Mayar’s commitment to localizing specialized industries in line with Vision 2030 goals.

The price range for the offering of the Sports Clubs Co. ranged between SR7 and SR7.5 per share, according to a statement by Saudi Fransi Capital, the financial advisor and bookrunner for the institutional subscription.

The offering includes 34.32 million ordinary shares, representing 30 percent of the company’s capital.


Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Saudi culture sector to triple GDP share to $48bn by 2030, says minister
Updated 22 June 2025
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Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Saudi culture sector to triple GDP share to $48bn by 2030, says minister

JEDDAH: Saudi Arabia plans to raise the cultural sector’s contribution to gross domestic product to 3 percent — or SR180 billion ($48 billion) — by 2030, up from under 1 percent, according to Minister of Culture Prince Badr bin Abdullah bin Farhan.

In an interview with Al-Eqtisadiah, the minister said the sector has already surpassed its previous 0.91 percent GDP share, with Vision 2030 targets being met ahead of schedule.

“Vision 2030 forms the foundation of the Ministry of Culture’s strategy and direction,” he said. 

“By 2030, we envision a cultural environment that nurtures talent, encourages innovation both locally and internationally, and supports the flourishing of creative and cultural enterprises.” Prince Badr said in the interview. 

“Ultimately, our goal is to increase the sector’s contribution to GDP to 3 percent, equivalent to SR180 billion,” he said. “This represents the core mission of the Ministry of Culture and its affiliated bodies in driving an ambitious cultural transformation.”

Since the ministry’s founding in 2018, employment in the sector has jumped 318 percent, while the number of cultural graduates reached 28,800 in 2024, up 79 percent from 2018. The ministry has also issued over 9,000 licenses, while cultural associations and amateur clubs surged from 28 to 993.

“One notable outcome is the increase in the percentage of citizens who believe culture is important—from under 70 percent to 92 percent,” Prince Badr said. The ministry also oversees national celebrations such as Founding Day and Flag Day and has documented 9,317 antiquities sites and 25,000 urban heritage locations.

Saudi Arabia has now met its Vision 2030 target of having eight UNESCO World Heritage sites, with Al-Faw joining the list in 2024. Cultural event attendance exceeded 23.5 million between 2021 and 2024, and major festivals such as the Red Sea Film Festival and Islamic Arts Biennale have become global draws.

The Cultural Scholarship Program has awarded scholarships to 1,222 students studying at over 120 institutions across countries, including the US, the UK, and France. The program’s flexible design — no age limit or required academic background — has broadened participation. “Today, scholarship recipients are pursuing degrees in fields such as music, theater, and visual arts,” the minister said.

Through the Cultural Development Fund, the ministry has disbursed SR377 million to more than 120 projects. “Key areas of growth include heritage, music, and fashion. More than 1,200 creatives and entrepreneurs have benefited from its development services,” he added.

“Globally, there is increasing recognition of culture’s role in sustainable economic value creation,” the minister said. “Our role is to preserve and promote cultural identity while making it accessible and economically valuable.”


Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

 Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 
Updated 22 June 2025
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Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

 Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. 

According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. 

The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.  

After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. 

In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”

Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.  

“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.   

Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.  

A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.  

Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.   

Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.   

Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.  

Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.  

The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.   

The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.  
 


Air France eyes daily Paris-Riyadh flights amid soaring demand

Air France eyes daily Paris-Riyadh flights amid soaring demand
Updated 22 June 2025
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Air France eyes daily Paris-Riyadh flights amid soaring demand

Air France eyes daily Paris-Riyadh flights amid soaring demand
  • New route reflects airline’s ambition to reestablish presence in Saudi market
  • It comes in response to growing demand to access Kingdom’s expanding economic opportunities

RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.

The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.

Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.

The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.

The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied

Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”

He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.

Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”

His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.

“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added. 

Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.

“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.

He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”

At the same time, the airline is leveraging its distinctive French identity.

The new route marks a strategic step for Air France as it expands operations in the region. Supplied

‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.

High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.

He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.

“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said. 

The airline is also the world’s leading buyer of sustainable aviation fuel. 

Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”

Air France is investing in technology to enhance the passenger experience.

“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.

“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.

“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.

Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”