The entry of female drivers into the market is expected to lead to an increase in the total number of cars sold, thus positively affecting the credit disbursed in the car finance market in Saudi Arabia.
The Vision 2030 project in Saudi Arabia has massive plans for the economy aimed at improving employment figures which could help the car finance market in the country.
The main players in the car credit market are Al Rajhi and SNB, followed by Emirates NBD, Banque Saudi Fransi. The new banks that have entered the market are Al Jazira, Arab National Bank and Alinma.
Embrace digitalization: Auto finance companies are increasingly moving towards higher technological advancements to improve operational profits as well as the customer experience. For example, AI is increasingly making important decisions, from who gets credit approval to how to answer customer questions about loan decisions in real time.
For more information on the research report, refer to the link below:-
https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/ksa-auto-finance-market-outlook-to-2026/596022-93.html
Entry of new players into the market and increase in the number of private entities: The new players entering the car finance market in Saudi Arabia are fintech companies. Around 38 companies have received approval from the Central Bank and have started accumulating databases by entering the market with digital wallets and offering products like BNPL. The number of private entities in the car finance market in Saudi Arabia is increasing, hence the percentage share from government to private might shift to private.
Preference for 4W instead of 2W: The car buying trend in Saudi Arabia is driven by customers wanting to buy new cars instead of using them once. The population also prefers to change cars every 5 years. Unlike South Asian countries where every household owns a 2-wheeler, in Saudi Arabia even the lowest income category travels by car. Two-wheelers in the Kingdom of Saudi Arabia are perceived as a luxury item rather than a means of transport, and four-wheelers have a higher preference rate.
Government Policies: Saudi Arabia Government Vision 2030 has massive plans for the economy aimed at improving employment figures which could also be fruitful for the auto finance market. As part of Vision 2030, the government of Saudi Arabia plans to reduce dependence on oil and is moving towards the adoption of electric vehicles. The government is keen on creating a national auto industry and has encouraged global automakers to establish local operations.
Ken Research analysts in their latest publication “KSA Auto Finance Market Outlook to 2026F-Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government” from Ken Research observed the potential of the Saudi auto finance market outlook Arabia. Growing awareness of auto finance among the population, along with increasing lending facilities, customer tastes and preferences, implementation of favorable government rules and regulations are expected to aid in the growth of the market in during the forecast period. The KSA Auto Finance Market is expected to grow at a CAGR of 6.6% over the forecast period 2021-2026F.
Key Segments Covered:-
Saudi Arabia Auto Finance
By type of lender
Banks
NBFC
OEM/Captives
By type of motor vehicle
Passenger
Commercial
By type of utility vehicle
HCV
CVD
SEEN
By type of passenger motor vehicle
4W
2W
By type of vehicle financed
New
Used
By loan term for new vehicles
1 year
2 years
3 years and over
By loan term for old vehicles
1 year
2 years
3 years and over
Key Target Audience:-
Automotive Industries of Saudi Arabia
Government agencies and regulatory authorities
Financial industry
car company
Car dealership and users
Time period entered in the report: –
Historical year: 2018-2021
Base year: 2021
Forecast Period: 2022-2026F
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Companies covered: –
Al Rajhi Bank
Bank of Riyadh
National Bank of Commerce
Abdul Latif Jameel
Arab National Bank
The Saudi Investment Bank
United Arab Emirates
Saudi Financial Corporation
Finance company Al Amthal
Alinma Bank
Main topics covered in the report:-
KSA Automotive Market Overview
Landscape of Total Cars in Saudi Arabia Automotive Market, 2021-2024F
KSA Auto Finance Market Overview
KSA Auto Finance Market Ecosystem
KSA Auto Finance Market Evolution and Business Cycle
Automotive finance market size in Saudi Arabia, 2018-2021
KSA Automotive Finance Market Segmentation, 2021 (By Type Of Vehicle Financed, By Occupancy Length Of New And Old Vehicles, By Type Of Commercial Vehicle, Type Of Lending Bank And By Type Of Lenders)
KSA Auto Finance Services Industry Analysis
Decision-making parameter for auto loan provider selection
Trends and Developments in the Automotive Finance Industry in Saudi Arabia
SWOT Analysis of Automotive Finance Industry in KSA
Issues and Challenges in the Auto Finance Industry in Saudi Arabia
Government Policies Affecting the Automotive Finance Industry in Saudi Arabia
Impact of Covid-19 on the car finance industry in Saudi Arabia
Competition framework for KSA Auto Finance
Future Outlook and Projections of the KSA Automotive Finance Market, 2021-2026F
Market Opportunities and Analyst Recommendations
Analyst Recommendations
Research Methodology
For more information on the research report, refer to the link below:-
https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/ksa-auto-finance-market-outlook-to-2026/596022-93.html
Related reports: –
https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/singapore-auto-finance-market-outlook-2025/508467-93.html
https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/philippines-auto-finance-market-outlook/308534-93.html
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Ken Research
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Ken Research is a research-based management consulting firm. We provide strategic advice to help clients on critical business insights: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers and acquisitions, and sustainability across all industries and geographies. We provide business intelligence services and operational advice in over 300 verticals highlighting disruptive technologies, emerging business models with analysis of precedents and success case studies. Some of the best consulting firms and market leaders seek our intelligence to identify new revenue streams, customer/vendor paradigm and pain points and competitive due diligence.
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