Saudi Arabia Retail Banking Market Size, Share, Trends and Report - 2034

Insight Pro Analytic
Sep 24
5 min read

Saudi Arabia Retail Banking Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia retail banking market attained a value of USD 19.98 billion in 2024. Aided by digital transformation, increasing financial inclusion, and supportive regulatory frameworks, the market is projected to grow at a CAGR of 6.50% between 2025 and 2034, reaching a value of USD 37.51 billion by 2034.

Retail banking market in Saudi Arabia forms the backbone of the country’s financial system, encompassing services such as personal loans, savings and current accounts, mortgages, credit cards, and wealth management solutions tailored to individuals. As Vision 2030 continues to accelerate economic diversification and modernisation, retail banking plays a central role in enhancing financial literacy, expanding digital financial services, and strengthening consumer access to banking solutions.

Saudi Arabia Retail Banking Market Size

The Saudi Arabia retail banking market has witnessed steady growth over the past decade, underpinned by economic resilience, rising disposable incomes, and rapid digitalisation. In 2024, the market size stood at USD 19.98 billion, with growth driven by both traditional branch banking and innovative digital platforms. By 2034, the market is forecast to almost double, supported by technological innovations, increasing customer engagement, and the integration of fintech solutions into mainstream banking services.

The expansion of mortgage lending, credit card usage, and personal financing products has been a key factor behind the sector’s performance. Additionally, retail banking penetration among young consumers and expatriates is expected to drive demand for diversified and personalised financial products in the coming years.

Saudi Arabia Retail Banking Market Share

The Saudi retail banking sector is dominated by a handful of major local banks, including Al Rajhi Bank, National Commercial Bank (NCB, now Saudi National Bank), Riyad Bank, and Samba Financial Group, among others. These institutions collectively command the largest share of the market due to their extensive branch networks, strong digital presence, and broad portfolios of financial services.

Islamic banking products also account for a significant share of the market, reflecting the Kingdom’s emphasis on Shariah-compliant financial solutions. Banks such as Al Rajhi Bank and Bank Albilad lead in offering Islamic retail banking services, catering to consumer preferences for Shariah-compliant mortgages, savings schemes, and personal financing options.

Meanwhile, fintech-driven digital-only banks, such as STC Pay and other emerging players, are gradually increasing their presence, gaining market share through user-friendly platforms, competitive transaction fees, and innovative mobile banking solutions.

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Saudi Arabia Retail Banking Market Trends

Several key trends are shaping the Saudi Arabia retail banking market:

Digital Banking Transformation:The growing adoption of mobile banking apps, contactless payments, and digital wallets is reshaping the retail banking landscape. Traditional banks are investing heavily in fintech partnerships, blockchain, and artificial intelligence to provide seamless, secure, and personalised banking experiences.

Rise of Fintech and Neobanks:Supported by regulatory reforms from the Saudi Central Bank (SAMA), fintech companies and neobanks are emerging as important players in the retail banking ecosystem, driving competition and financial inclusion.

Growth of Islamic Banking:With strong consumer preference for Shariah-compliant services, Islamic retail banking remains a cornerstone of the sector. Innovations in Islamic fintech, including digital Shariah-compliant investment platforms, are expected to gain momentum.

Customer-Centric Banking Models:Saudi banks are increasingly focusing on personalised products, loyalty programmes, and AI-driven advisory services to enhance customer satisfaction and build long-term relationships.

Integration of ESG Principles:Retail banks are aligning their strategies with environmental, social, and governance (ESG) frameworks, offering green financing products and promoting responsible banking practices.

Drivers of Growth

The Saudi Arabia retail banking market is being propelled by several growth drivers:

Vision 2030 Reforms: Economic diversification and financial sector reforms are driving banking penetration, enhancing regulatory transparency, and boosting investor confidence.

Growing Middle Class and Youth Demographics: With a large, tech-savvy youth population and rising disposable incomes, demand for digital banking services, consumer credit, and savings products is increasing.

Digitalisation and Technology Adoption: Government initiatives promoting digital payments, coupled with high smartphone penetration, are accelerating the shift towards online and mobile banking.

Expatriate Workforce: A significant expatriate population drives demand for remittance services, credit cards, and personal loans, contributing to market expansion.

Financial Inclusion Initiatives: Efforts to bring unbanked populations into the formal financial system, particularly women and SMEs, are further widening the customer base.

Saudi Arabia Retail Banking Market Segmentation

The market can be divided based on services and bank type.

Breakup by Services

Transactional Accounts
Debit Cards
Savings Accounts
Loans
Credit Cards
Others

Breakup by Bank Type

Private Bank
NBFCs
Public Bank

Industry Key Players

Some of the major players explored in the report by Expert Market Research are as follows:

Saudi National Bank
Al Rajhi Banking & Investment Corp.
Saudi Awwal Bank
Banque Saudi Fransi
Riyad Bank
Alinma Bank
Bank Albilad
Bank Aljazira
The Saudi Investment Bank
CitiGroup, Inc.
HSBC Group
Others

Challenges and Opportunities

Despite its strong growth prospects, the Saudi retail banking market faces several challenges:

Cybersecurity Risks: The rise in digital transactions has heightened the risk of cyberattacks, requiring continuous investment in data protection and fraud prevention.

Competition from Fintechs: While fostering innovation, the entry of fintechs intensifies competition, pressuring traditional banks to accelerate digital adoption.

Regulatory Compliance: Meeting evolving regulatory requirements, especially around anti-money laundering (AML) and customer data protection, adds to operational complexity.

Changing Consumer Expectations: Customers demand seamless, personalised, and real-time banking services, pushing banks to invest in customer experience innovation.

On the other hand, the sector offers vast opportunities:

Expansion of Islamic Digital Banking: Shariah-compliant digital banking platforms can attract a large segment of customers seeking modern yet compliant solutions.

SME Financing: As the Kingdom supports entrepreneurship under Vision 2030, retail banks have opportunities to expand financing solutions for small and medium-sized enterprises.

Wealth Management and Investment Products: Growing affluence among Saudi consumers is driving demand for investment advisory, insurance, and wealth management services.

Green and Sustainable Banking: Banks can capitalise on opportunities in green financing and ESG-linked retail products, aligning with global sustainability trends.

Saudi Arabia Retail Banking Market Forecast

The Saudi Arabia retail banking market is set for robust growth over the next decade. By 2034, the market is projected to reach USD 37.51 billion, nearly doubling from its 2024 valuation. Growth will be underpinned by digitalisation, rising financial literacy, and the expansion of Islamic banking solutions.

As traditional banks accelerate their digital transformation and fintech players continue to innovate, competition will intensify, ultimately benefiting consumers through better services, lower costs, and greater accessibility. Furthermore, continued government support for Vision 2030 reforms and SAMA’s progressive regulatory stance will ensure the industry remains dynamic and resilient.