Saudi Arabia Auto Financing Market Size to Hit USD 5.2 Billion by 2034 At a CAGR of 6.91%

Saudi Arabia Auto Financing Market Overview

Market Size in 2025: USD 2.8 Billion

Market Forecast in 2034: USD 5.2 Billion

Market Growth Rate 2026-2034: 6.91%

According to IMARC Group's latest research publication, "Saudi Arabia Auto Financing Market Size, Share, Trends and Forecast by Type, Source Type, Vehicle Type, and Region, 2026-2034", The Saudi Arabia auto financing market size reached USD 2.8 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 5.2 Billion by 2034, exhibiting a growth rate (CAGR) of 6.91% during 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Auto Financing Market

• AI-driven credit scoring in Saudi Arabia analyzes hundreds of data points beyond traditional history, helping digital lenders approve more auto loans for new-to-credit customers while cutting default risk.​
• Online loan aggregators using AI now match borrowers with multiple banks in seconds, in a market already valued around USD 1.2 billion for AI-enabled aggregation platforms.​
• Vehicle financiers increasingly use AI to automate e-KYC, document checks, and instant approvals, slashing car loan processing from days to minutes and lifting customer satisfaction scores.​
• SAMA’s Regulatory Sandbox and Open Banking initiatives encourage AI-led auto lending experiments, with fintech startups growing roughly 40% and rolling out embedded finance journeys inside dealer and marketplace apps.​
• Banks and captives now deploy AI chatbots and advisory engines in Arabic, guiding customers on instalments, insurance add-ons, and refinancing options, boosting digital engagement across auto finance portfolios.​

Saudi Arabia Auto Financing Market Trends & Drivers:

One of the strongest growth drivers in Saudi Arabia’s auto financing market is simply how many cars are now bought on credit rather than cash. Recent estimates indicate that roughly 70–75% of vehicles in the Kingdom are financed, underscoring how central loans and leases have become to car ownership. Rising disposable incomes, urbanization, and a young, mobility-focused population are all feeding this trend, especially in big cities like Riyadh and Jeddah. Passenger vehicles account for about three-quarters of financed volumes, with SUV and sedan demand particularly strong among middle‑income families and first-time buyers.​

Government policy under Vision 2030 is another key force reshaping auto finance and broadening access to credit. Through the Financial Sector Development Program, regulators are pushing for deeper financial inclusion, more Shariah-compliant products, and a larger private-sector role in consumer lending. SAMA has stepped up oversight by setting responsible lending rules, capping rates, and strengthening consumer protection, which increases trust in formal lenders. At the same time, targeted incentives for electric and fuel-efficient vehicles—such as reduced profit rates, longer tenors, and tailored leasing products—are nudging banks and finance companies to design new, greener auto finance offerings.​

Digitalization and new business models are the third big trend accelerating market growth and changing how Saudis shop for and finance cars. Around half of auto finance applications are already being handled through digital channels, with many consumers completing approvals via mobile apps or dealer-integrated online portals. Banks like Al Rajhi, Saudi National Bank, and Riyad Bank, alongside captives such as Abdul Latif Jameel Finance, now push instant pre-approvals, e-KYC, and paperless contracts to speed up disbursements. Fintechs are also entering with buy-now-pay-later style instalment products and subscription-style car usage models, giving younger customers more flexible alternatives to traditional loans or long-term leases.

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Saudi Arabia Auto Financing Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• New Vehicle
• Used Vehicle

Source Type Insights:

• OEMs
• Banks
• Credit Unions
• Financial Institutions

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Auto Financing Market

• July 2025: Digital-only banks STC Bank and D360 expand AI-powered auto financing journeys, with D360 surpassing 600,000 users, driving fully online loan approvals and faster disbursement times.​
• May 2025: Saudi Central Bank reports finance company credit at about $26.5 billion, with auto loans making up roughly 26% as disbursements grow 18.8% year-on-year.​
• March 2025: Saudi Arabia launches a SR1 billion green financing initiative, encouraging banks and finance firms to roll out preferential EV and hybrid vehicle loan products nationwide.​

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