Oman, Europe trade hits $2.28m in May, marking 9.5% growth

RIYADH: Credit card lending in Saudi Arabia soared to an all-time high of SR31.37 billion ($8.4 billion) in 2024, reflecting a 16 percent annual increase as the Kingdom accelerates its shift toward digital payments. 

The latest data from the Saudi Central Bank, also known as SAMA, shows that credit card lending now accounts for 6.66 percent of total consumer financing, more than doubling over the past six years. 

The steady rise aligns with Vision 2030’s push for digital payments and reduced cash transactions, reinforcing the Kingdom’s shift toward a modern, cashless financial ecosystem. 

SAMA data also showed total consumer loans reached SR471 billion in 2024, up 6.6 percent year on year. This excludes real estate financing, finance leasing, and margin lending. 

Among lending categories, education financing saw the highest growth, surging 9.6 percent to SR8.17 billion. Tourism and travel loans followed, rising 8.1 percent to SR992 million, while borrowing for furniture and durable goods increased 7.97 percent to SR8.52 billion. 

Vehicle and private transportation loans remained the largest identified segment, accounting for 2.5 percent of total consumer loans at SR11.71 billion. Notably, 91.8 percent of consumer loans fell under the category of “Others.” 

Consumer loans typically feature fixed repayment schedules and lower interest rates, often used for major expenses such as vehicle purchases and education. 

In contrast, credit card lending operates as a revolving credit facility, allowing borrowers to access funds up to a set limit, with repayments at variable interest rates based on usage. 

While credit card lending remains significantly lower than overall consumer loans, its rapid expansion is driven by several key factors. 

One major catalyst is the increasing availability of Shariah-compliant credit card products. As a predominantly Islamic banking market, Saudi Arabia has seen rising demand for financial solutions that align with religious principles, making credit cards more attractive to a wider consumer base. 

Banks have also introduced flexible payment solutions to cater to customer needs, including the Flexi credit card — launched by the Saudi National Bank in partnership with Mastercard — that lets users split payments into four interest-free installments, enhancing financial flexibility. 

Promotional incentives have further fueled growth, with banks offering rewards programs, cashback offers, travel discounts, and zero-fee installment plans. American Express Saudi Arabia, for example, provides exclusive benefits on hotel stays and dining, encouraging frequent card usage. 

The Kingdom’s rapid transition to a cashless economy has also played a crucial role. Government initiatives promoting digital transactions have increased consumer reliance on electronic payments, while the expansion of contactless payment technology has enhanced convenience and security, strengthening trust in digital financial services. 

Technological advancements, including secure mobile banking solutions and digital wallets, have further boosted the appeal of credit cards. 

As financial institutions continue innovating and the government sustains its digital transformation drive, Saudi Arabia’s credit card market is poised for continued growth, cementing its role in the Kingdom’s evolving financial landscape. 

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday told a World Bank delegation that the country has enough financial assistance, stressing that it requires technical support and expertise to make the most of it. 
A delegation of nine executive directors of the World Bank arrived in Pakistan this week to discuss the country’s economic projects and investments, meeting Prime Minister Shehbaz Sharif on Monday.
The World Bank last month announced it would provide Pakistan with $20 billion in loans over the next decade. These loans are expected to be invested in nutrition, education and renewable energies in the hope of stimulating private-sector growth in the country. 
“We have enough financial support and assistance; what we truly need now is the expertise and technical support to make the most of them,” Aurangzeb was quoted by Pakistan’s Finance Division as saying in a statement. 
Aurangzeb appreciated the international institution’s support for Pakistan’s economic growth and development agenda. He outlined the government’s structural reforms, focusing on revenue mobilization, energy sector reforms, restructuring of state-owned enterprises and privatization efforts. 
“He emphasized the government’s focus on fiscal discipline through expenditure control and broadening the tax base, highlighting ongoing rightsizing efforts and projected revenue growth,” the Finance Division said. 
The minister reaffirmed Pakistan’s commitment to privatize loss-making public assets, saying that Islamabad was committed to ensuring a business-friendly environment where the private sector takes the lead in driving economic growth.
The Finance Division said that the delegation appreciated Pakistan’s reform agenda, noting that key economic measures were already yielding visible results. 
“Your government has been successful in touching every important aspect of the economy, and things seem to be achievable now if you stay the course,” the delegation said, as per the Finance Division.  
The World Bank officials also reaffirmed the institution’s commitment to continuing its collaboration with Pakistan, supporting priority sectors and providing the necessary technical expertise to help the country navigate economic challenges, the Finance Division said. 
Cash-strapped Pakistan has long suffered from a macroeconomic crisis, which caused it to come to the brink of a sovereign default in 2023. The International Monetary Fund (IMF) rescued Islamabad by agreeing to a last-gasp $3 billion bailout in 2023.
Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent in January year-on-year.