Saudi Youth & Credit Cards: Rising Debt Among Millennials
In recent years, a significant financial shift has occurred across Saudi Arabia. The youth, especially millennials, are becoming increasingly dependent on credit cards, creating a concerning trend: rising consumer debt. As Vision 2030 pushes the Kingdom toward modernization and increased financial inclusion, an unintended consequence has surfaced—young Saudis are falling into debt traps faster than ever.
The Growing Popularity of Credit Cards in Saudi Arabia
The financial landscape in Saudi Arabia has changed dramatically over the last decade. Banks and fintech startups are aggressively targeting the youth segment with attractive credit card offers—zero-interest plans, cashback, and lifestyle benefits. These strategies have worked: credit card issuance has surged, especially among Saudis aged 22 to 35.
According to the Saudi Central Bank (SAMA), the number of active credit cards in the country grew by more than 15% between 2022 and 2024. With millennials accounting for over 65% of the population, it’s easy to see how this group has become the core market for consumer credit products.
Lifestyle Over Savings: A Cultural Shift
One of the core reasons for rising credit card debt among Saudi youth is a cultural and generational shift in spending habits. While the older generation prioritized saving and minimal debt, millennials are embracing consumption, driven by global trends, social media, and an increasing desire for convenience.
With the rise of buy-now-pay-later (BNPL) services, e-commerce platforms, and digital banking, spending has never been easier. But this ease comes with consequences. Many millennials swipe now and worry later—until the debt piles up beyond control.
Credit Cards as a Status Symbol
In a society where luxury goods, fashion, and lifestyle play a significant role in personal branding, owning a credit card is no longer just about convenience—it’s a status symbol. This is particularly true among university students and early-career professionals in cities like Riyadh, Jeddah, and Dammam.
Luxury purchases, international travel, and exclusive dining experiences are often funded not with disposable income but through revolving credit. The problem is not just the initial spending—it’s the interest rates, late fees, and minimum payment traps that come later.
Millennials and Financial Literacy Gaps
One of the biggest contributing factors to rising credit card debt is a lack of financial literacy among Saudi youth. Many millennials are unfamiliar with how credit scores work, how interest is calculated, or how missed payments can affect their future financial stability.
While Saudi Arabia has started incorporating financial education into school curricula, most millennials are already in the workforce and missed out on structured financial guidance. Many only realize the true cost of borrowing when it’s too late—when they’re buried in debt and facing calls from collection agencies.
Debt, Mental Health, and Social Pressure
Financial stress is closely linked to mental health issues, and the rising debt among Saudi millennials is beginning to show psychological consequences. Anxiety, depression, and social withdrawal are increasingly reported among those struggling to meet monthly credit card payments.
In a culture that values appearances, many youths hide their financial struggles, worsening their situation. The pressure to maintain a lifestyle that looks good on Instagram often comes at the cost of real-world financial well-being.
Case Study: Sarah’s Debt Spiral
Take the story of Sarah, a 27-year-old marketing executive in Riyadh. Like many of her peers, she got her first credit card at 24 to buy a new iPhone. Over the next three years, she used her card for vacations, shopping, and even everyday expenses when her salary ran out.
When COVID-19 hit and she faced salary cuts, Sarah could no longer keep up with her minimum payments. By early 2025, her total credit card debt had reached SAR 92,000, with an annual interest rate of 27%. She now attends financial counselling sessions, trying to rebuild her life.
Sarah’s story is not unique—it reflects a broader pattern among Saudi millennials.
Government & Financial Sector Responses
Saudi authorities are not turning a blind eye. In 2023, SAMA introduced tighter regulations on credit card marketing and more transparency in interest disclosures. Banks are now required to explain repayment terms in both Arabic and English in plain language.
In addition, Vision 2030 initiatives are encouraging banks to offer debt consolidation plans, financial literacy workshops, and AI-driven budgeting tools targeted at the youth.
However, enforcement and adoption remain inconsistent. Many millennials still rely on peer advice or TikTok influencers rather than professional financial guidance, risking poor decisions.
Credit Card Usage Trends Among Saudi Millennials (2020–2025)
| Year | Total Active Credit Cards (Millions) | Percentage Issued to Millennials (%) | Average Outstanding Balance (SAR) | Delinquency Rate (%) |
|---|---|---|---|---|
| 2020 | 4.5 | 52% | 11,000 | 2.3% |
| 2021 | 5.1 | 57% | 12,300 | 2.7% |
| 2022 | 5.8 | 61% | 13,900 | 3.4% |
| 2023 | 6.7 | 65% | 15,200 | 4.1% |
| 2024 | 7.5 | 68% | 17,000 | 4.6% |
| 2025* | 8.3 (estimated) | 70% (projected) | 18,500 (projected) | 5.1% (projected) |
Source: Saudi Central Bank (SAMA), industry reports, market estimates
*2025 figures are projections based on current trends.
This table clearly illustrates the upward trajectory in credit card dependence and financial risk among the youth.
The Role of Fintech: Help or Harm?
The rise of fintech apps has created new avenues for both debt and debt management. Apps like Tamara, Tabby, and stc pay offer short-term credit without traditional underwriting, making them attractive but risky.
On the positive side, apps like Hakbah and Lean focus on savings, budgeting, and expense tracking, helping millennials regain control over their finances. The key lies in user education and responsible design.
For long-term solutions, fintech companies must strike a balance between profitability and consumer protection.
Gendered Impact: Women and Credit
Interestingly, Saudi women—especially those entering the workforce post-2018 reforms—are disproportionately affected by credit card debt. With newfound financial independence and limited financial experience, some women are navigating credit without sufficient support systems.
Banks have recognized this segment as high-growth and now aggressively promote “female-friendly” financial products, including premium credit cards, women-only banking branches, and credit lines tied to maternity benefits or fashion partnerships.
But empowerment without education can be dangerous. Many women are now calling for more targeted financial literacy programs that address their unique experiences and challenges.
Credit Ratings and Future Consequences
For millennials, credit card misuse can affect much more than monthly budgets. Poor credit scores in Saudi Arabia now influence eligibility for car loans, mortgages, and even job opportunities in the banking sector.
As the country introduces more Western-style credit reporting systems, the long-term impact of youthful overspending may haunt an entire generation. Employers, landlords, and lenders are increasingly checking credit histories—a wake-up call for those currently living beyond their means.
Why Addressing Millennial Credit Card Debt in Saudi Arabia Is Urgent Now
The surge in credit card usage among Saudi millennials reflects a financial revolution—but one that comes with a heavy cost. As shown in the data, not only is card usage rising sharply, but so are outstanding balances and delinquency rates.
If left unchecked, this trend could lead to a nationwide debt burden that impacts everything from economic productivity to social stability. Millennials make up the backbone of the workforce—if they’re drowning in credit debt, Saudi Arabia’s financial future is at risk.
The time to act is now. With better financial education, stricter regulation, and youth-focused debt support systems, the Kingdom can steer its young population toward sustainable financial health—aligning personal goals with Vision 2030’s national ambitions.
