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