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RIYADH: Credit card lending in ����ֱ�� 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, ����ֱ�� 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 ����ֱ��, 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, ����ֱ��’s credit card market is poised for continued growth, cementing its role in the Kingdom’s evolving financial landscape.