Chicago, July 18, 2025 (GLOBE NEWSWIRE) -- The Saudi Arabia debt collection market was valued at US$ 802.38 million in 2024 and is expected to reach US$ 1,618.38 million by 2033, growing at a CAGR of 8.10% during the forecast period 2025–2033.
As the Kingdom of Saudi Arabia undergoes a profound economic metamorphosis under the banner of Vision 2030, its financial landscape is being reshaped at an unprecedented pace. This transformation is characterized by a monumental expansion of credit, touching every facet of the economy from the individual consumer to the largest corporations. This surge in lending, while a testament to the nation's robust growth and burgeoning confidence, brings with it a direct and compelling consequence: a burgeoning demand for sophisticated, efficient, and professional debt collection services. This report delves into the granular statistics that define this new era, painting a vivid picture of the unparalleled opportunities emerging within the Saudi debt collection market.
Download a Free Sample to Preview the Report: https://www.astuteanalytica.com/request-sample/saudi-arabia-debt-collection-market
Key Findings in Debt Collection Market
| Market Forecast (2033) | US$ 1,618.38 million |
| CAGR | 8.10% |
| By Debt Type | Corporate Debt (56.51%) |
| By Service Type | Third-Party Collection (49.32%) |
| By Collection Stage | Late-Stage Debt Collection (52.92%) |
| By Collection Channel | Digital Debt Recovery (60.02%) |
| By Industry Vertical | Banking and Financial Services (33.49%) |
| Top Drivers |
|
| Top Trends |
|
| Top Challenges |
|
A Burgeoning Credit Economy: Charting the Monumental Rise in Saudi Lending
The scale of credit expansion in Saudi Arabia debt collection market is nothing short of historic. By March 2025, total bank credit extended to both the public and private sectors had impressively surpassed SAR 3.1 trillion, a clear indicator of a vibrant and liquid financial system. This figure builds on a strong upward trajectory, with total bank credit recorded at $780 billion by the close of November 2024. The engine of this growth is the private sector, with bank claims on private entities reaching a landmark high of SAR 2.89 trillion in January 2025. This momentum was evident even earlier, as total bank credit at the end of October 2024 stood at a formidable SAR 2.88 trillion. Supporting this credit boom is a solid foundation of institutional strength; the assets of the Saudi Central Bank (SAMA) swelled to approximately SAR 2 trillion in May 2025, while deposits within the banking sector climbed to SAR 2.73 trillion by January 2025, ensuring ample liquidity to fuel the nation's ambitions.
Decoding the Credit Spectrum: A Granular Look at Loan Maturities
A closer examination of the credit landscape reveals a strategic distribution across different time horizons, reflecting a multi-faceted economic strategy in the debt collection market of Saudi Arabia. As of the end of September 2024, long-term loans with maturities exceeding three years constituted the largest portion of credit, accounting for a massive SAR 1.39 trillion. This substantial figure points towards significant, long-term investments in infrastructure, giga-projects, and large-scale corporate expansions that form the cornerstone of Vision 2030. Concurrently, medium-term loans, spanning one to three years, reached approximately SAR 437.04 billion, likely financing business equipment and medium-scale projects. Complementing this is a robust short-term credit market, with loans of less than a year amounting to SAR 1.06 trillion, facilitating working capital, trade finance, and operational liquidity for businesses across the Kingdom. This balanced portfolio of debt maturities indicates a healthy, dynamic economy but also creates a complex, multi-layered demand for debt collection services tailored to different recovery cycles.
Sovereign and Capital Markets: The Bedrock of the Expanding Debt Collection Landscape
The government and its related entities are pivotal in shaping the Kingdom's sophisticated debt collection market ecosystem. By the end of 2024, the sovereign outstanding debt portfolio had reached SAR 1.216 trillion, a managed figure used to finance strategic national initiatives. This portfolio was strategically balanced, with domestic debt making up SAR 741.76 billion, or 61% of the total, and international debt comprising the remaining SAR 474.24 billion (39%). The vibrancy of the capital markets is further evidenced by the total value of listed sukuk and bond issuances on the Saudi Exchange, which hit approximately SAR 633.5 billion by the end of Q4 2024. This was a steady increase from the third quarter of 2024, when the value was about SAR 610.7 billion, with government sukuk and bonds accounting for the lion's share at nearly SAR 594.2 billion.
In 2024 alone, Saudi Arabia raised a staggering US$79.5 billion from 79 primary bond and sukuk issuances, comprising US$ 49.7 billion in sukuk and US$ 29.8 billion in conventional bonds, including the largest sovereign issuance of the year valued at $12.6 billion. The National Debt Management Center's issuances, such as the SAR 3.23 billion sukuk in May 2024 and a multi-tranche SAR-denominated sukuk in December 2024 featuring a single tranche of SAR 5.585 billion, underscore this activity. Furthermore, SAR-denominated issuances raised US$ 33.9 billion across the GCC in 2024, with a significant portion originating from the Kingdom.
The Consumer Credit Surge: A Deep Dive into Household Borrowing Trends
The Saudi consumer has emerged as a key driver of credit growth in the debt collection market, fueled by rising disposable incomes and a desire for an enhanced lifestyle. Total household debt reached a significant $134.0 billion in December 2024. Bank loans specifically to consumers were recorded at SAR 452.32 billion in June 2024, with figures for the first quarter of 2024 standing at a similar SAR 451 billion. A particularly sharp increase was seen in credit card loans, which surged to SAR 27.25 billion in the first quarter of 2024.
Beyond traditional banks, specialized finance companies have become major players, with their total credit provided increasing to SR 96.26 billion in 2024. This included SAR 27.6 billion in personal finance, SAR 25.16 billion in auto financing, and a notable jump in credit card finance to SAR 1.92 billion. Consumers are also borrowing for self-improvement and leisure, with education loans climbing to SAR 8 billion and travel and tourism loans reaching SAR 990 million in Q1 2024. This explosion in consumer credit directly translates into a high-volume demand for retail debt collection.
Real Estate's Meteoric Rise: Unpacking the Individual Mortgage Debt Phenomenon
Nowhere is the consumer borrowing boom more evident than in the real estate sector. Total real estate loans from banks soared to a record SAR 883.3 billion by the end of 2024. The vast majority of this was driven by individuals, whose real estate lending amounted to SR 681.24 billion at the year's end, up from SR 656.88 billion in the third quarter. In 2024, banks granted a total of SAR 91.1 billion in new residential mortgages to individuals. This activity was consistent throughout the year, with new residential mortgages hitting SAR 11.94 billion in December 2024 alone and SAR 20.49 billion in the third quarter. In June 2024, SAR 5.31 billion in residential mortgages were granted, contributing to a total of 727,000 mortgage contracts signed between banks and retail clients by that time.
Financing for residential villas in the debt collection market in Saudi Arabia dominated these mortgages in 2024 at SAR 58.3 billion, followed by apartments at SAR 28.1 billion and land plots at SAR 4.7 billion. Interestingly, lending for apartments soared to SR 7.25 billion in Q3 2024 while loans for houses declined to SR 12.06 billion, and lending for land rose to SR 1.19 billion, showing shifting preferences. Financing firms also played a key role, providing residential real estate loans totalling SAR 23.36 billion in 2024 and issuing SAR 160 million in new residential loans in June 2024, though their total residential mortgages for the year dropped to SAR 2.57 billion.
Powering Vision 2030: Analyzing the Unprecedented Growth in Corporate Borrowing
The corporate sector is aggressively leveraging debt to fuel its expansion and align with the ambitious goals of Vision 2030. By March 2025, credit extended to businesses had surpassed the SR 1.71 trillion mark, a testament to the scale of investment and development underway in the Saudi Arabia debt collection market. The private sector's appetite for growth is relentless, with bank credit growing to SAR 2.79 trillion in January 2025. This influx of capital is the lifeblood of economic diversification, enabling companies to undertake large-scale projects, adopt new technologies, and expand their operational footprint both domestically and internationally. This massive increase in corporate liabilities, while essential for progress, inherently elevates the risk of defaults and delinquencies, creating a critical and high-value market for specialized B2B debt collection and recovery services.
Sectoral Deep Dive: Identifying Key Industries Driving the Corporate Debt Market
A breakdown of corporate debt reveals the key sectors powering the Kingdom's economic engine in the debt collection market. As of March 2025, real estate activities led corporate borrowing, reaching an immense SR 374.5 billion. This corporate real estate lending saw a steady increase, reaching SR 202.04 billion by the end of 2024 and SR 189.6 billion by Q3 2024, with finance companies adding another SR 4.92 billion in commercial real estate financing in 2024. The wholesale and retail trade sector was also a major borrower, holding SR 212.8 billion in loans as of March 2025. The manufacturing sector followed closely, with loans amounting to SR 189.18 billion.
A Significant borrowing was also seen in utilities, with the electricity, gas, and water supply sector's loans totaling SR 181.43 billion. The pivotal construction sector secured SAR 138.7 billion in commercial bank credits by May 2025, supplemented by SAR 7.0 billion in finance company credit in 2024. Even social sectors like education saw corporate loans reach SR 9.35 billion by March 2025, while the sophisticated financial and insurance activities sector's borrowing expanded to hit SR 161.43 billion.
The Engine of Growth: Examining Credit Expansion for Micro, Small, and Medium Enterprises
Recognizing their role as a vital engine of job creation and economic diversification, Saudi Arabia debt collection market has prioritized funding for Micro, Small, and Medium Enterprises (MSMEs). This focus has resulted in total credit facilities to MSMEs reaching SR 351.7 billion in 2024. This represents strong growth from the third quarter of 2024, when MSME credit stood at SR 329.23 billion. A detailed breakdown for 2024 shows that medium enterprises were the largest recipients, securing SR 186.74 billion in credit. Small enterprises received SR 122.17 billion, while credit to micro-enterprises saw a significant increase, reaching SR 42.32 billion. While crucial for economic vibrancy, this segment often carries a higher risk profile, making effective and sensitive debt collection strategies essential for both lender stability and the long-term health of the MSMEs themselves.
Corporate Capital Raising: The Sophistication of Bond and Sukuk Issuances
The increasing sophistication of the Saudi corporate landscape in the debt collection market is reflected in its dynamic use of capital markets. In 2024, corporate issuances from the GCC, dominated by Saudi entities, accounted for a massive $79.7 billion. This demonstrates a strategic shift towards diversified funding sources beyond traditional bank loans. Government-related corporate entities across the GCC, again led by Saudi firms, were particularly active, raising US$ 17.4 billion in 2024. The scale of these offerings is also notable; for instance, Saudi Aramco executed the largest single corporate offering in 2024 with a $2 billion issuance. This maturation of the corporate debt market, characterized by large, publicly traded instruments, introduces a new layer of complexity to debt recovery, often involving intricate legal frameworks and a diverse base of institutional and private investors, requiring highly specialized collection and advisory services.
Tailor This Report to Your Specific Business Needs: https://www.astuteanalytica.com/ask-for-customization/saudi-arabia-debt-collection-market
The Inevitable Consequence: The Unparalleled Opportunity for Debt Collection Market Growth
The demand for debt collection market in Saudi Arabia is set for unprecedented growth. The sheer volume of new credit—spanning long-term sovereign bonds, corporate real estate loans, SME financing, and individual credit card and mortgage debt—creates a vast and diverse portfolio of receivables. As this mountain of debt matures, a natural and predictable portion will inevitably become delinquent. This is not a sign of economic weakness, but rather a normal function of a rapidly expanding, credit-fueled economy. For savvy investors and operators, this presents a golden opportunity. The future belongs to those debt collection agencies that can combine scale, technological innovation, regulatory compliance, and culturally sensitive practices to become essential partners in maintaining the financial stability and sustainable growth of the Kingdom.
Saudi Arabia Debt Collection Market Major Players:
- Al Madani & Co .
- AW Holding
- Alwasl National Debt Collection for Financing Entities Co .
- Oddcoll
- Baker Ing
- Maharah Debt Collection
- Saudi Debt Collection
- Unified Credit Solutions Pvt Ltd .
- Mutalabah
- Excellent Solutions
- TCM Group
- Cedar Financial
- Debt Works
- Credit Reform
- Eyad Reda Law Firm LLP
- Other Prominent Players
Key Market Segmentation:
By Type of Debt
- Consumer Debt
- Corporate Debt
By Service Type
- First-Party Collection
- Third-Party Collection
- Debt Purchasing
By Collection Stage
- Early-Stage Debt Collection
- Late-Stage Debt Collection
By Collection Channel
- Traditional Collection Methods
- Digital Debt Recovery
By Industry Vertical
- Banking and Financial Services
- Healthcare
- Retail and E-Commerce
- Telecommunications
- Real Estate & Leasing
- Government & Education
- Others
Need to Validate the Data with a Domain Expert?: https://www.astuteanalytica.com/expert-call/saudi-arabia-debt-collection-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
Follow us on: LinkedIn | Twitter | YouTube
