Summary
KSA Debt Collection Market Outlook to FY’2026 – characterized by fierce competition and high growth prospects
The report titled “KSA Debt Collection Market Outlook to FY’2026 – characterized by fierce competition and high growth prospects” provides a comprehensive analysis of the potential of the Debt Collection industry in Saudi Arabia. The report covers various aspects including the current debt collection scenario and status in KSA, market size on the basis of debt collected, number of cases settled and revenue, market share of debt collection companies, Market segmentation by the segments, by type and age of firm, by sub-segmentation of insurance, finance and non-finance segment. Major trends and developments, issues and challenges, government regulations, competition landscape and cross comparison. The report concludes with case studies, analyst recommendations and key market opportunities.
KSA Debt Collection Market Overview
The debt collection market in KSA is expected to grow at a double digit CAGR between FY ’21 and FY ’26 with new entrants facing fierce competition from the existing major players in the market.
Motor Insurance claims has the highest percentage share among net claims incurred by insurance companies in KSA. The major source of revenue for debt collection companies is the commission charged on recovered amount.
KSA Debt Collection Market Segmentation
By Segments (Insurance, Financing and Non-Finance): Financing segment accounted for majority of debt collected, however, the non-finance segment has major share in total number of cases settled. With a low-ticket size of SAR 4,000, Non-finance segment have major share in total number of cases settled. With high ticket size of SAR 18,000, financing segment has low share in total cases settled.
By Type of Firm (Debt Collection Companies and Law firm cum Debt Collection Companies): Debt Collection Firms have majority share in terms of amount of debt collected as well as number of cases settled as compared to Law firm cum Debt Collection Companies.
By Age of Firm (2-7 years, 7-14 years and 12-17 years): Relatively mature companies with the age between 12-17 years have highest share in debt collection as well as cases settled; likely due to recurring contracts from existing clientele.
By Geography: Three provinces viz., Riyadh, Eastern Province and Makkah account for the majority of debt collection in KSA.
By Sub-Segmentations of Insurance, Finance and Non-Finance: Motor insurance within insurance segment and real estate within financing segment have majority share in terms of total debt collection & number of cases settled. Telecommunication services and Utilities are the major sub-segments for debt collection within the non-finance segment.
KSA Debt Collection Market Competition:
The market is fragmented with presence of a large number of debt collection companies and law firms. The existing players in the market are majorly headquartered in the cities of Riyadh, Jeddah and Dammam. These companies vary largely on the basis of collection agents, Lawyers, number of employees. Apart from debt collection services, companies are also providing credit reporting/business advisory as value-added services to meet client requirements.
There exists a moderate threat of new entrants as they have to overcome various challenges like licensing requirements, capital requirements, access to a network of collection agents and lawyers, etc. However, as offerings of existing players are not much differentiated, new players can enter the market with competitive pricing and spending on marketing campaign.
KSA Debt Collection Market Future Outlook and Projections
The Debt Collection Market in Saudi Arabia is anticipated to grow at a positive double digit CAGR for the period FY’21-FY’26F.
Future Trend: Artificial Intelligence and Machine Learning are enabling better recovery predictions and ongoing case management. Moreover, AI also helps with regulatory compliance. AI-based collections management software is bound to find higher usage in the coming years.
Key Segments Covered in KSA Debt Financing Market:
By Segments
Insurance
Financing
Non-Finance
By Type of Firm
Debt Collection Companies
Law Firm cum Debt Collection Companies
By Age of Firm
2-7 years
7-14 years
12-17 years
By Geography
Riyadh Province
Maddah Province
Eastern Province
Al Baha Province
Al Jawf Province
Northern Borders Province
Qassim Province
Ha’il Province
Tabuk Province
Aseer Province
Jizan Province
Najran Province
Sub-Segmentation of Insurance Segment
By Sub-Segment of Insurance Segment
Motor
Property/Fire
Accident & Liability
By Sub-Segment of Non-Finance Segment
Commercial and Professional Services
Consumer Services
Energy
Food & Beverages
Real Estate Management and Development
Telecommunication Services
Transportation
Utilities
By Sub-Segment of Finance Segment
Real Estate Financing
Retail Real Estate Financing
Corporate Real Estate Financing
Companies Covered
Alwasl National Debt Collection Co.
Alkhorayef Collection
Future Solutions
Taswia
Fuel Collection
Estrdad Alassol Co. Ltd.
Marsoom (Sadad)
Ejada
Maharah Debt Collection
Excellent Solutions Co.
Hololona Company Ltd.
Qemma
Hazim Al Madani Law Firm
Abdullah A. Al Fallaj Law Firm
Eyad Reda
Alaskari Law Firm
Key Target Audience
Existing Debt Collection Companies
Law Firms
Financing Companies
Non-Financing Companies
Insurance Companies
Debt Collection & Management software providers
Government Agencies
Finance Consultants
Others
Time Period Captured in the Report: -
Base Year: 2021
Forecast Period: 2022-2026F
Key Topics Covered in the Report
How is the Debt Financing Market positioned in KSA?
Overview of Insurance, financing and non-finance sector in KSA
KSA Debt Collection Market Ecosystem
Growth Drivers, Trends and Developments in the market
Government Regulations
Porter’s Five Forces Analysis for KSA Debt Collection Market
Market Size and Segmentation, 2021-2026F
Competitive Landscape of KSA Debt Collection Industry
Cross Comparison of Major Players using fundamental, operating model, clientele, geography and service offering parameters
Case study & Analyst Recommendations
Research Methodology
The report titled “KSA Debt Collection Market Outlook to FY’2026 – characterized by fierce competition and high growth prospects” provides a comprehensive analysis of the potential of the Debt Collection industry in Saudi Arabia. The report covers various aspects including the current debt collection scenario and status in KSA, market size on the basis of debt collected, number of cases settled and revenue, market share of debt collection companies, Market segmentation by the segments, by type and age of firm, by sub-segmentation of insurance, finance and non-finance segment. Major trends and developments, issues and challenges, government regulations, competition landscape and cross comparison. The report concludes with case studies, analyst recommendations and key market opportunities.
