Top Saudi Arabia Car Loans Banks, Applying Car Loan in Saudi Arabia, Auto Loan industry in Saudi Arabia - Ken Research

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Saudi Arabia Car Finance Market Outlook to 2021
Ken Research
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The report titled Saudi Arabia Car Finance
Market Outlook to 2021 Rising Used Car Demand
and Increasing Focus of Banks on Consumer Finance
to Stabilize Growth which provides an extensive
analysis of car finance market in Saudi Arabia.
The report covers market size on the basis of
credit disbursed, number of cars financed and new
and used car penetration, segmentation on the
basis of new and used car finance, tenure of loan
for new car and used car and number of new cars
financed in each region.
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The report also includes the rules and
regulations implied by the government on the
banks in lending a car loan, competitive
landscape and company profiles for major players
in the car finance market. The report provides
detailed overview on the general features of car
loan in the country and future outlook
projections with future strategies of the players
in the market. The report facilitate the readers
with the identification and in-depth analysis of
the existing and future trends and issues that
impacts the industry and has anticipated growth
in the future depending upon changing industry
dynamics in coming years. The report is useful
for prospective borrowers, car dealers, banks,
private financing companies and other
stakeholders to plan their market centric
strategies in accordance with the ongoing and
expected trends in the future.
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Industry Overview The market has displayed a
steady growth trend until 2015 during the review
period, 2011-2016 at a CAGR of . In 2016, there
had been a fall in the credit disbursed for
passenger and commercial cars as a result of the
falling demand for new cars in the country. The
growth exhibited by the market during the initial
five years of the review period was supported by
factors such as increasing demand for new and
used cars, growing car rental industry, increased
demand for commercial cars and other related
factors. Fall in the credit disbursement observed
during 2016 was resulted out of the increased new
car prices, reduced supply of used cars, rising
fuel prices and certain macro economic
factors. Saudi Arabia Car Finance Market
Segmentation Saudi Arabia car finance market is
segmented by new and used car finance, by tenure
of loan for new and used car, by finance source
and by region.
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On the basis of credit disbursed the new car
dominates the market with a share of in 2016
followed by used cars. For new cars, the tenure
of five years dominates the car finance market
with a share of on the basis of credit
disbursed in 2016. It is followed by three years,
two years and other tenures. For used cars, the
tenure of one year accounted for the highest
share in the market during 2016 on the basis of
credit disbursed which was . It is followed by
two year and three year tenures. Banks dominate
over the private financing companies in the
market with a share of in terms of credit
disbursed. Riyadh holds the highest share among
all other regions of Saudi Arabia in terms of
number of new cars financed. It held a share of
during 2016. Jeddah holds the second position
in the market followed by Dammam, Makkah and
others.
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Competitive Landscape In Saudi Arabia, car
finance is offered to the public by banks and
private finance companies and the market is
dominated by banks. The banks held a share of
in the market in terms of credit disbursed for
car finance followed by private finance company
with a share of during 2016. There are nearly
26 banks with more than 2,000 branches and more
than 10 recognized private finance companies
spread across the Kingdom. All these players are
competing against each other on the basis of
profit rates, loan tenure, minimum salary
requirement, down payment and other such
parameters. The major players in the market are
Al Rajhi Bank, National Commercial Bank, Riyad
Bank, Al Amthal Finance Company and others. There
is a stiff competition in the market and it is a
moderately fragmented market. Saudi Arabia Car
Finance Market Future Potential The car finance
market in Saudi Arabia is expected to recover
from the fall experienced towards the end of the
review period and grow at a CAGR of during the
forecast period 2016-2021.
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The growth is expected to emerge on the grounds
of new schemes and loan programs being introduced
by the banks with minimal terms and conditions.
However, the growth rate expected to display
during this period is moderate, which is
anticipated to fluctuate depending on the
Kingdoms economic and political circumstances.
Owing to the lowering prices for used cars the
demand for used cars is expected to rise, thereby
raising the demand for used car finance. The
Saudi Arabian Monetary Authoritys reform of
lowering interest rates to enhance liquidity is
expected to positively impact the growth in the
market. Key Topics Covered in the Report Saudi
Arabia Car Finance Market Overview and Genesis
Islamic Banks Saudi Arabia Car Loan Market Saudi
Arabia Car Credit Market Future Finance the Car
in Saudi Arabia Process Riyadh Auto Loan
Market Car Loans Riyadh Bank Share
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Saudi Arabia Car Loan industry Car Payment or Car
Loan Decision Saudi Arabia Value Chain Analysis
of Saudi Arabia Car Finance Market Saudi Arabia
Car Finance Market Size Top Saudi Arabia Car
Loans Banks Saudi Arabia Car Financing
Market Auto Loan industry in Saudi
Arabia Applying Car Loan in Saudi Arabia Saudi
Arabia Car Finance Market Segmentation Loan
Disbursed Cars in Saudi Arabia Compare Auto Loans
in Saudi Arabia Government Regulations on Saudi
Arabia Car Finance Market Trends and Issues in
Saudi Arabia Car Finance Market Product Features
of Car Loans by Banks in Saudi Arabia Car Finance
Market Competitive Landscape of Major Players in
Saudi Arabia Car Finance Market Future Outlook
and Projections of Saudi Arabia Car Finance
Market Macroeconomic Factors affecting Saudi
Arabia Car Finance Market
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  ices-and-insurance/loans-and-advances/saudi-arabia
  -car-finance-market/125720-93.html
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