Saudi Arabia
Saudi Arabia, the largest country in the Middle East, is a significant player in global economics and a key hub for trade and tourism. With a population of approximately 35 million, the Kingdom has been undergoing a transformative journey from an oil-dependent economy to a more diversified and dynamic one, driven by initiatives such as Vision 2030. This ambitious plan aims to reduce the country's reliance on oil and promote sectors like tourism, entertainment, technology, and renewable energy. The Saudi economy is one of the largest in the region, with oil and gas still contributing a substantial share of the GDP. However, the government has made significant investments in infrastructure, technology, and tourism, positioning the country as a global business center. Notably, cities like Riyadh and Jeddah are emerging as attractive destinations for both business and leisure, known for their rich cultural heritage, modern amenities, and vibrant lifestyles. As a member of the Gulf Cooperation Council (GCC) and the World Trade Organization (WTO), Saudi Arabia has established strong trade relationships worldwide. The Kingdom's strategic location between Europe, Asia, and Africa facilitates international trade, making it a vital re-export hub in the region. Saudi Arabia demonstrated resilience during the COVID-19 pandemic, implementing effective government measures and vaccination campaigns that helped the economy recover. The economy contracted by about 4.1% in 2020 but rebounded with a growth rate of 3.2% in 2021, driven by strong performances in non-oil sectors such as construction, retail, and tourism. The growth continued at an estimated 8.5% in 2022, fueled by increased oil prices and a surge in domestic and international tourism. Inflation in Saudi Arabia has remained relatively stable, with consumer price inflation hovering around 2.5% in 2023, influenced by global economic conditions and supply chain disruptions. The Central Bank of Saudi Arabia has adopted a cautious monetary policy, focusing on maintaining stability in the financial system while supporting economic growth. The Saudi government employs a proactive fiscal policy characterized by significant investments in infrastructure, public services, and diversification initiatives. Public debt remains manageable, and the government aims to control fiscal risks while enhancing economic resilience. Sustainable development is a prominent goal for Saudi Arabia, with initiatives aimed at reducing carbon emissions and promoting renewable energy. The country has invested heavily in solar and wind energy projects, with the NEOM project being a flagship initiative that aims to create a sustainable city powered entirely by renewable energy.
Top banks
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National Commercial Bank (NCB)
NCB is one of the largest banks in Saudi Arabia, offering a comprehensive range of financial services to individuals and businesses, with a strong focus on digital banking.
Al Rajhi Bank
As one of the largest Islamic banks in the world, Al Rajhi Bank provides Sharia-compliant banking products and services, focusing on retail banking and corporate financing.
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SABB (Saudi British Bank)
SABB offers a diverse portfolio of banking products and services, including retail banking, corporate banking, and wealth management.
Riyad Bank
Riyad Bank provides a wide range of banking services, emphasizing customer service and innovative financial solutions.
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Arab National Bank (ANB)
ANB offers comprehensive banking services and is known for its commitment to customer satisfaction and digital innovation.
Top payment methods
Credit and Debit Card Use
Credit and debit cards are widely used in Saudi Arabia, with Visa and Mastercard being the most dominant brands. Recent reports indicate:
- Visa and Mastercard account for nearly 60-70% of card transactions in the Kingdom, with Visa being the most commonly used due to widespread acceptance at various merchants.
- Contactless payments are gaining traction, with a growing number of merchants adopting tap-to-pay technology.
Mobile Payment Solutions
Mobile payments are rapidly gaining popularity, with platforms like Apple Pay, STC Pay, and Mada leading the way. In urban areas:
- An estimated 20-25% of all transactions are completed via mobile payments, particularly among younger consumers.
- Apple Pay is among the most popular mobile payment options, driven by high smartphone penetration rates in the country.
Alternative Payment Methods (APMs)
In Saudi Arabia's expanding e-commerce sector, alternative payment methods (APMs) such as digital wallets and "buy now, pay later" (BNPL) services are gaining traction. Key APM statistics include:
- BNPL services are increasingly popular, especially for online shopping in fashion and electronics. The BNPL market has seen significant growth, with many online shoppers utilizing these options.
- PayPal is a commonly used online payment platform in Saudi Arabia, especially for international transactions, due to its global acceptance and convenience.
Cash Usage Decline
In line with global trends, cash usage has seen a decline in Saudi Arabia:
- In 2023, cash transactions made up approximately 30-35% of all transactions, with a sharper decrease in urban areas and among younger populations. While cash remains common in traditional markets, digital payment adoption is steadily increasing.
Prepaid Cards and Cryptocurrencies
Prepaid cards are popular for specific retail purposes and public transport, with a significant portion of the population using them for daily expenses. Cryptocurrencies are gradually entering the financial landscape, with the government exploring blockchain technology and supporting cryptocurrency exchanges, although they are still not widely used for everyday transactions.
Concluding remarks
Saudi Arabia's economy is evolving into a robust global force, driven by diversification, innovation, and strategic investments across various sectors. As the Kingdom navigates economic challenges, cities like Riyadh are at the forefront of digital payment trends. The country's strong digital infrastructure, coupled with growing consumer trust in electronic payment solutions, is driving a shift toward contactless, mobile, and alternative payment methods. This trend aligns with Saudi Arabia's Vision 2030 initiative, reflecting its commitment to becoming a leader in financial innovation and a cashless society.
Cash (ريال سعودي)
Cash remains a common payment method in Saudi Arabia, especially in traditional markets. The Saudi Riyal is widely accepted, and ATMs are accessible throughout the country.
Credit and debit cards are widely used, with Visa and Mastercard being the most prevalent networks. Cards are accepted in most retail outlets, restaurants, and hotels.
Credit and Debit Cards
Mobile Payments
Mobile payment platforms like Apple Pay, STC Pay, and Mada are gaining popularity, providing a convenient way to conduct transactions using smartphones.
Online Payment Platforms
E-commerce is thriving in Saudi Arabia, with platforms like PayPal and local solutions being widely used for online transactions. Consumers increasingly prefer online shopping, supported by robust logistics and delivery services.
Bank Transfers
Bank transfers are commonly used for larger transactions, including real estate purchases and business payments. The Saudi banking system is well-integrated with international financial networks, facilitating cross-border payments.
Prepaid Cards
Prepaid cards are popular for specific services, such as public transportation and gift-giving, providing users with a convenient way to manage spending.
Cryptocurrencies
While cryptocurrencies are not widely adopted for transactions, Saudi Arabia is actively exploring blockchain technology and has introduced regulations to support crypto exchanges and digital asset businesses.
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Processing News is an Online Wikipedia of the payment world. We collect and publish information about payment habits in different countries, describing methods that payers use in their daily life.
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