A study by the market research entity YouGov has revealed that a majority of individuals residing in Saudi Arabia, amounting to 54%, are actively seeking profitable investment avenues for their funds.
The burgeoning fintech industry and the digital transformation of the banking system have opened up new prospects for Saudi consumers. These individuals are now more inclined to enhance their financial portfolios through investment and savings.
An intriguing finding from the survey participants who are investors is that 82% are motivated by the desire to save money, in stark contrast to the 59% of non-investors. Moreover, 75% of respondents expressed that debt is a source of stress, which propels them towards investing. Additionally, half of them are willing to embrace financial risks if it means higher potential returns from their investments.
This recent data from YouGov represents a substantial shift in consumer attitudes. Back in 2018, a study by SEDCO Holdings and Souqamal.com highlighted that over 80% of Saudi residents had no investment plans, with 45% lacking any form of savings. However, the landscape has changed significantly.
The ambitious Vision 2030 initiative by Saudi Arabia has been a driving force in revolutionizing the financial sector and spurring investment interest among citizens. By promoting advancements in financial technology, electronic banking, and educational programs on financial literacy, the government has empowered its people to take charge of their wealth creation and management.
Rise of digital services
There is a noticeable surge in the adoption of digital payment methods in Saudi Arabia, signifying a shift in consumer habits.
According to the YouGov study, STC Pay is utilized by 45% of the populace, while Mada Pay is favored by 38%. Interestingly, international platforms like Apple Pay and Samsung Pay are less prevalent.
When it comes to retail banking, nearly 40% of the consumers bank with Al Rajhi Bank, followed by the National Commercial Bank, Riyad Bank, Bank Albilad, and SABB (HSBC).
Statistics platform Statista projects that the digital payments market in Saudi Arabia will grow at an annual rate of 8.06% from 2024 to 2028. The value of digital transactions is expected to climb from $63.9 billion in 2024 to over $87 billion by 2028, indicating the growing momentum of digital payments in the region.
As financial services move towards digitization, these developments aim to refine the user experience and meet the varied investment needs of KSA residents, who are keen to make astute financial investments.