Business & Money | Thursday 4 August, 2016 1:01 pm |

Riyali - SEDCO Holding Group’s Financial Literacy Program - has recently partnered with Souqalmal.com to collaboratively increase the financial education & awareness in Saudi Arabia to empower Saudi youth with the personal financial skills required to achieve a desirable standard of living in the 21st century.  

With more than 50% under the age of 30, this rapidly-growing young and highly connected population will need to make sound financial decisions in an ever-increasing digital world to ensure financial inclusion. 

Seeking to instill financial education, this collaboration aims to bring on board a wealth of financial knowledge, courses, and tools in a seamless and a more user-friendly way using digital and social media channels.

According to the latest figures from the Saudi Arabian Monetary Agency (SAMA), the total number of consumer loans in the Kingdom reached SAR334 billion at the end of the first quarter of 2016 when compared to the same quarter last year, representing a 6 percent increase. With consumer credit expected to grow, it has become more important to inculcate financial education to foster a stable and progressive future. 

 

The results of various independent surveys revealed the dearth of financial literacy among Saudis. A survey conducted by SEDCO Holding showed that only 11% of young Saudis keep track of their spending, despite 75% claiming they understood the basics of money management.

Amr Banaja, Vice-President, Marketing and Corporate Responsibility, SEDCO Holding Group, said it is critical for the Saudi youth to learn the ropes in managing finances, otherwise such deficiencies would ruin their economic goals. “Financial education is an integral part of SEDCO Holding’s commitment to its social responsibility programs to ensure positive change and sustainable development in the Saudi community.”

 

In a similar survey conducted by Souqalmal.com, the first financial comparison site in Saudi Arabia, it has been revealed that around 50% of Saudi nationals who participated in the survey were not aware of the credit report provided by SIMAH (Saudi Credit Bureau), thus lacking the understanding of credit worthiness. In another survey conducted by the website, more than 80% of the respondents didn't know how to calculate their loan repayments and around 60% of the respondents didn’t know how to calculate their Debt Burden Ratio, highlighting a gaping hole in financial education, which must be addressed to ensure healthier financial decisions.

 

Ambareen Musa, CEO of Souqalmal.com, said: “Education plays a vital role in helping consumers know their financial rights and obligations. As a financial comparison site, Souqalmal.com helps consumers compare financial products offered by banks in Saudi Arabia. Financial education has been an integral part of our existence and allows us to raise the level of transparency and awareness to allow users to better understand their financial choices and commitments.”