Saudi tourists borrow up to SR3 billion from Saudi banks to cover their expenses in foreign tourist destinations, according to a financial expert. The Media and Banking Awareness Committee of Saudi Banks (MBAC) has warned Saudis about the loans saying that they need to make good on these loans within the given time frame.

Talaat Hafiz, secretary-general of Media and Banking Awareness Committee of Saudi Banks (MBAC) told Arab News, “It is very important for Saudi tourists to honor their commitments toward repaying loans without any delay.”

It is customary for bank loans to be invested in housing, education or any business sector as these areas ensure a profit on these loans. Tourism loans, on the other hand, do not afford the bank substantial gains. However, many Saudis insist on borrowing money from the banks but are unable to pay the installments of their loans, he added.

Dr. Fadal Abu Al-Ainain, a financial expert said that loans can exceed SR60,000 per individual on average and that most of these loans are applied for by Saudi families who wish to spend their vacations abroad.

Speaking to Arab News, Al-Ainain said that the value of the total annual loans provided by Saudi banks to Saudi tourists is up to SR3 billion. At the same time, many Saudi tourists depend on their credit cards to manage their cost of living outside the Kingdom.”

Meanwhile, Saudi banks have stepped up efforts to warn customers against hackers who try to penetrate their accounts using the most advanced technology.

Hafiz said that customers had responded positively to the awareness campaign. “Customer awareness is a shield against hacking,” he said.

Saad Al-Sheikh, chief economist at the National Commercial Bank, said each bank has a special department to counter the new methods being used for penetrating accounts. He said the banks have also established special media committees to organize awareness campaigns against banking fraud and hacking.