Saudi Arabia Microfinance Market Introduction and Overview
According to SPER Market Research, the Saudi Arabia Microfinance Market is estimated to reach USD 2.02 billion by 2033 with a CAGR of 9.65%.
The report includes an in-depth analysis of the Saudi Arabia Microfinance Market, including market size and trends, product mix, Applications, and supplier analysis. Microfinance is a sort of financial service offered to unemployed or low-income individuals or groups who do not have other means of accessing financial services. The goal of these institutions is to provide microloans to the world's unbanked communities, as well as savings, insurance, and payment services. The market's services are intended to make high-quality financial goods and services accessible to low-income and socially marginalized customers, as well as to assist them in becoming self-sufficient.
Market Opportunities and Challenges
Opportunities:
Transition to Microfinance from Conventional Lending - Online finance has grown significantly in recent years due to the rise in internet users and smartphone penetration in Saudi Arabia. Since microfinance offers immediate affordability for applications, it is regarded as one of the most practical and popular choices for lenders. Instead of going through the drawn-out lending process, many individuals and organizations have begun completing online loan applications in recent years. Furthermore, the simplicity of loan applications for borrowers and a number of additional advantages for lenders, including automated loan administration and quick approval, are causing them to turn their focus to digital microfinance, which is propelling the expansion of the Saudi microfinance market.
Challenges:
The biggest impediment to market growth is the high interest rates that microfinance institutions and microlenders demand for varied loan amounts. Microlenders concentrate increasing their earnings, which leads to a short repayment period and high costs. Microfinance institutions borrow large sums of money from banks and other institutions, causing them to charge high interest rates and short payback terms, stifling market growth. Furthermore, because microfinance companies are not permitted to collect savings like traditional banks to fund loans, which has a negative impact on market expansion, many microfinance institutions around the world raise capital through private equity. The tightening of government rules on microfinance firms also stifles industry growth.
Market Competitive Landscape
The competitive landscape of Saudi Arabia's microlending sector appears to be quite diverse, with traditional banks, microfinance institutions, and fintech startups all trying different approaches to differentiating themselves. Banks are leveraging their extensive networks and existing client bases to expand their microfinance offerings by developing bespoke products for small businesses and underprivileged populations. At the same time, MFIs have played an important role in establishing trusting connections and providing tailored services to their customers. Key market players are Alinma bank, Al Rajhi bank, ANB, Bank Albilad, Banque Saudi Fransi, Gojo & Company, Inc, among others.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Provider, By End-User |
| Regions covered | Eastern Region, Western Region, Southern Region, Northern Region |
| Companies Covered | Alinma bank, Al Rajhi bank, ANB, Bank Albilad, Banque Saudi Fransi, Gojo & Company, Inc, Kiva, Riyad Bank, SABB, Saudi Arabia, SNB. |
By End-User Insights:
Depending on the end-user, the small enterprises segment dominated the Saudi Arabia microfinance market size in 2021 and is expected to continue this trend during the forecast period, as it enables small size business users to easily manage their business operations and funding, allowing for effective planning and management of the inflow and outflow of monetary funds, thereby driving the adoption of microfinance services in this segment.
COVID-19 Impact on Saudi Arabia Microfinance Market
The COVID-19 epidemic has made it possible for lending operations, such as past-due or non-collectible loans, to become an implicit component of the financial sector, which has had a moderate impact on the growth of the microfinance market. As a result, there is now a significant demand for microfinance institutions (MFIs) to adopt modern debt management software. In addition, the government of Saudi Arabia shut down a number of microfinance institutions because of the rising number of COVID patients. In order to market their goods and draw clients, microfinance firms also embraced a number of new digital channels.
Key Target Audience:
- Low-Income Individuals and Households
- Micro and Small Enterprises (MSEs)
- Agricultural Workers and Farmers
- Government and Policy-Making Institutions
- Non-Governmental Organizations (NGOs) and Charitable Foundations
- Fintech Companies and Digital Payment Providers
- Investors and Development Financial Institutions (DFIs)
- Educational Institutions and Vocational Training Centers
- Corporate Entities Supporting CSR Initiatives
Our in-depth analysis of the Saudi Arabia Microfinance Market includes the following segments:
| By Provider: | BanksMicro Finance Institute (MFI)NBFC (Non-Banking Financial Institutions)Others |
| By End-User: | Small EnterprisesMicro EnterprisesSolo Entrepreneurs or Self-Employed |
Key Topics Covered in the Report:
- Saudi Arabia Microfinance Market Size (FY’2024-FY’2033)
- Overview of Saudi Arabia Microfinance Market
- Segmentation of Saudi Arabia Microfinance Market By Provider (Banks, Micro Finance Institute, Non-Banking Financial Institutions, Others)
- Segmentation of Saudi Arabia Microfinance Market By End-User (Small Enterprises, Micro Enterprises, Solo Entrepreneurs or Self-Employed)
- Statistical Snap of Saudi Arabia Microfinance Market
- Expansion Analysis of Saudi Arabia Microfinance Market
- Problems and Obstacles in Saudi Arabia Microfinance Market
- Competitive Landscape in the Saudi Arabia Microfinance Market
- Impact of COVID-19 and Demonetization on Saudi Arabia Microfinance Market
- Details on Current Investment in Saudi Arabia Microfinance Market
- Competitive Analysis of Saudi Arabia Microfinance Market
- Prominent Players in the Saudi Arabia Microfinance Market
- SWOT Analysis of Saudi Arabia Microfinance Market
- Saudi Arabia Microfinance Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the Saudi Arabia Microfinance Market.
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. Saudi Arabia Microfinance Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Saudi Arabia Microfinance Market
7. Saudi Arabia Microfinance Market, By Provider (USD Million) 2020-2033
7.1. Saudi Arabia Microfinance Market Size, Share and Forecast, By Provider, 2020-2026
7.2. Saudi Arabia Microfinance Market Size, Share and Forecast, By Provider, 2027-2033
7.3. Banks
7.4. Micro Finance Institute (MFI)
7.5. NBFC (Non-Banking Financial Institutions)
7.6. Others
8. Saudi Arabia Microfinance Market, By End-User (USD Million) 2020-2033
8.1. Saudi Arabia Microfinance Market Size, Share and Forecast, By End-User, 2020-2026
8.2. Saudi Arabia Microfinance Market Size, Share and Forecast, By End-User, 2027-2033
8.3. Small Enterprises
8.4. Micro Enterprises
8.5. Solo Entrepreneurs or Self-Employed
9. Saudi Arabia Microfinance Market Forecast, 2020-2033 (USD Million)
9.1. Saudi Arabia Microfinance Market Size and Market Share
10. Saudi Arabia Microfinance Market, By Region, 2020-2033 (USD Million)
10.1. Saudi Arabia Microfinance Market Size and Market Share By Region (2020-2026)
10.2. Saudi Arabia Microfinance Market Size and Market Share By Region (2027-2033)
10.3. Eastern Region
10.4. Western Region
10.5. Southern Region
10.6. Northern Region
11. Company Profile
11.1. Alinma bank
11.1.1. Company details
11.1.2. Financial outlook
11.1.3. Product summary
11.1.4. Recent developments
11.2. Al Rajhi bank
11.2.1. Company details
11.2.2. Financial outlook
11.2.3. Product summary
11.2.4. Recent developments
11.3. ANB
11.3.1. Company details
11.3.2. Financial outlook
11.3.3. Product summary
11.3.4. Recent developments
11.4. Bank Albilad
11.4.1. Company details
11.4.2. Financial outlook
11.4.3. Product summary
11.4.4. Recent developments
11.5. Banque Saudi Fransi
11.5.1. Company details
11.5.2. Financial outlook
11.5.3. Product summary
11.5.4. Recent developments
11.6. Gojo & Company, Inc
11.6.1. Company details
11.6.2. Financial outlook
11.6.3. Product summary
11.6.4. Recent developments
11.7. Kiva
11.7.1. Company details
11.7.2. Financial outlook
11.7.3. Product summary
11.7.4. Recent developments
11.8. Riyad Bank
11.8.1. Company details
11.8.2. Financial outlook
11.8.3. Product summary
11.8.4. Recent developments
11.9. SABB, Saudi Arabia
11.9.1. Company details
11.9.2. Financial outlook
11.9.3. Product summary
11.9.4. Recent developments
11.10. SNB
11.10.1. Company details
11.10.2. Financial outlook
11.10.3. Product summary
11.10.4. Recent developments
11.11. Others
12. Conclusion
13. List of Abbreviations
14. Reference Links