KSA Debt Collection Companies | KSA Debt Collection Market Trend – Ken Research

1. KSA Debt Collection Market Outlook to FY’2026 – characterized by fierce competition and high growth prospects November 2022

2. 1. Executive Summary • Executive Summary – KSA Debt Collection Market 2. KSA Debt Collection Market Overview • Overview of Insurance Sector • Overview of Finance Sector • Overview of Non-Finance Sector 3. Ecosystem Analysis – KSA Debt Collection Market • KSA Debt Collection Market Ecosystem • Value Chain Analysis by Segments (insurance, non-insurance, non-finance) 4. Industry Analysis - KSA Debt Collection Market • Trends in KSA Debt Collection Market • Challenges for New Entrants • Regulatory Landscape of KSA Debt Collection Market • Porter’s Five Forces Analysis • Certifications obtained in the KSA Debt Collection Industry • Digital trends shaping the Debt Collection Industry • Organization Chart of a typical debt collection company 5. KSA Debt Collection Market Size • Market Size basis debt collected, no. of cases settled and revenue • Market Share of major debt collection companies 6. KSA Debt Collection Market Segmentation • Market Segmentation by the Segments • Market Segmentation by Type and Age of Firm CONTENT TABLE OF

3. • Market Segmentation by Geography • Sub-segmentation of Insurance, Financing & Non-Finance segment 7. Competitive Landscape of Debt Collection Market in KSA • Competitive Analysis basis Fundamental Parameters • Competitive Analysis basis Geography and Service Offerings • Competitive Analysis basis Clientele • Competitive Analysis basis Operating Model • Competitive Analysis basis Market Share 8. Case Study • Case Study of Atradius Collections 9. Analyst Recommendations • Segment-wise opportunity in the debt collection space • Success factors & growth opportunities for Al-Tasweyah 10. Research Methodology • Market Definitions • Acronyms • Market Sizing Approach • Consolidated Research Approach & Limitations • Questionnaire Disclaimer Contact Us CONTENT TABLE OF

4. KSA Debt Collection Market HOW IS THE DEBT COLLECTION MARKET POSITIONED IN KSA? Overview: NPLs (Non-Performing Loans) by Saudi banks as a percentage of total gross loans have witnessed steady rise over the last five years thereby creating market opportunity for debt collection companies catering to the financing segment. Debt collection companies strongly prefer to resolve debt collection matters without going to court. However, all collection companies have partnered with law firms to resolve cases through litigation. Market: 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. Licenses: Excel Only: USD 4,500 Single User: USD 5,000 Single and Excel: USD 6,500 Hard Copy: USD 6,500 Corporate User: USD 7,500 Slides: 97 Author: Anurag Saha Figure: KSA Debt Collection Market on the basis of amount of debt collected in SAR Mn, FY’21-FY’26F Related Reports: India Digital Lending Market Outlook to FY’2027- Driven by the Growing Internet Population, Increasing Demand for App-Based Instant Loans, and Variety of Consumer Loans being offered in the Market SAR Mn Collateralized Debt Obligation Market Research: Global Status & Forecast by Geography, Type & Application (2017-2027) FY’21 FY’26F Amount of Debt Collected in SAR Mn

5. 5 KSA Debt Collection Market KSA DEBT COLLECTION MARKET Table: KSA Debt Collection Market Segmentation by Segments on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F By Segments 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 Age of firm FY’21 FY’26 2-7 years ~ ~ 7–12 years ~ ~ 12-17 years ~ ~ Table: KSA Debt Collection Market Segmentation by Segments on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F By Geography Cities of Riyadh, Jeddah and Dammam are the major geography from where debt is collected in KSA. By Segments FY’21 FY’26 Table: KSA Debt Collection Market Segmentation by Type of Firm on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F Insurance ~ ~ Financing ~ ~ Non-finance ~ ~ By Geography FY’21 FY’26 Riyadh ~ ~ By Type of Firm 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. Makkah ~ ~ Eastern Province ~ ~ Ha'il ~ ~ Table: KSA Debt Collection Market Segmentation by Type of Firm on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F Madinah ~ ~ Tabuk ~ ~ Qassim ~ ~ By Type of Firm FY’21 FY’26 Aseer ~ ~ Debt Collection Company ~ ~ Najran ~ ~ Law firm cum Debt Collection Company ~ ~ Al Baha ~ ~ Total ~ ~ Al Jawf ~ ~ Jizan ~ ~ By Age of Firm Relatively mature companies (12 years – 17 years) have highest share in debt collection as well as cases settled; likely due to recurring contracts from existing clientele. Northern Borders ~ ~ Total ~ ~ © Licensed product of Ken Research; should not be copied

6. 6 KSA Debt Collection Market By Sub-segmentation of Insurance Motor insurance within insurance segment have majority share in terms of total debt collection & number of cases settled. Table: KSA Debt Collection Market Segmentation by Sub-segmentation of Insurance on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F By debt collection within non-Finance segment FY’21 FY’26 Table: KSA Debt Collection Market Segmentation by debt collection within insurance segment on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F Commercial and Professional Services ~ ~ Consumer Services ~ ~ By debt collection within Insurance segment FY’21 FY’26 Energy ~ ~ Motor ~ ~ Food & Beverages ~ ~ Accident & Liability ~ ~ Real Estate Management and Development ~ ~ Property/fire ~ ~ Telecommunication Services ~ ~ Total ~ ~ Transportation ~ ~ By Sub-segmentation of Finance Real estate within non-finance segment has majority share in terms of total debt collection & number of cases settled. Utilities ~ ~ Table: KSA Debt Collection Market Segmentation by Sub-segmentation of finance on the basis amount of debt collected (in SAR Mn), FY’21-FY’26F By debt collection within finance FY’21 FY’26 Real estate financing ~ ~ Retail Real estate financing ~ ~ Corporate Real estate financing ~ ~ By Sub-segmentation of non-Finance Telecommunication services and Utilities are the major sub-segments for debt collection within the non-finance segment. © Licensed product of Ken Research; should not be copied

7. 7 KSA Debt Collection Market COMPETITIVE LANDSCAPE 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. CROSS COMPARISON OF MAJOR PLAYERS OPERATING IN KSA DEBT COLLECTION MARKET Table: Cross Comparison between Major Debt Collection Companies in KSA Parameters Company A Company B Company C Company D Company E Year of Establishment ~ ~ ~ ~ ~ Headquarters ~ ~ ~ ~ ~ Collection Agents ~ ~ ~ ~ ~ Lawyers ~ ~ ~ ~ ~ Presence in KSA ~ ~ ~ ~ ~ Presence in other MENA countries ~ ~ ~ ~ ~ Nature of Client ~ ~ ~ ~ ~ Prominent Clients ~ ~ ~ ~ ~ Commission Charged ~ ~ ~ ~ ~ Pricing Model ~ ~ ~ ~ ~ Success Rate ~ ~ ~ ~ ~ Duration of Litigation ~ ~ ~ ~ ~ © Licensed product of Ken Research; should not be copied

8. 8 KSA Debt Collection Market MAJOR KSA DEBT COLLECTION COMPANIES COVERED IN THE REPORT Table: List of Debt Collection Companies covered in this report Segment List of Companies • • • • • • • • • • • • • • • • 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 Debt Collection Companies WHAT IS THE FUTURE OF KSA DEBT COLLECTION MARKET? 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. © Licensed product of Ken Research; should not be copied

9. 9 KSA Debt Collection Market RESEARCH METHODOLOOGY Parameters Description • Secondary Research  Company Reports  Magazines  Journals  Articles And Company Profiles  Online articles Primary Research  Computer assisted telephonic interviews (CATIs) with leading debt collection companies. Research Sources • • To validate the data points gathered from the interviews, analysts then carried out mystery calling with the debt collection companies in KSA. The team also tried to understand their operating and financial indicators including revenue, business models, geographical presence, focus areas, business verticals, and services offered among others. Sanity Checking • Exhaustive secondary research done on the KSA debt collection market. Gathered information on the market from several industry articles, company websites, blogs, industry reports. Conducted interviews with the management of the companies (C-level executives, Business Development head, Regional Head, Operations Manager, & others). Analysts have adopted a Bottom-Up approach to build the market size on the basis of amount of debt collected as well as the number of cases settled by segments (insurance, finance, non-finance) • Market Sizing Approach • • The operating and financial performance for each company has been compiled by reaching out to the management of each respective company. It can be the case that the management of companies might be bullish or bearish with the number been provided. However, to avoid this limitation we have cross checked and revalidated the data using mystery shopping calling approach. The average ticket size for the three segments viz., insurance, finance and non-finance has been taken into account for estimating the market size in terms of number of cases settled. It has been assumed that the average ticket size across the segments will not vary in the forecast period FY’22 - FY’26. This assumption has been taken into account to forecast the future market size by number of cases settled. • Limitations • • • Historical Period: 2021 Forecast Period: 2022-2026 Time Period Captured © Licensed product of Ken Research; should not be copied

10. 10 KSA Debt Collection Market Parameters Description • Debt Collection Companies:  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 Companies Covered © Licensed product of Ken Research; should not be copied

11. 11 KSA Debt Collection Market SAMPLE SIZING INCLUSION Stakeholders Sample Size (Out of 85 respondents) 60 Alwasl National Debt Collection Company Taswia Fuel Collection Marsoom Ejada Excellent Solutions Co. Hololona Company Ltd. Qemma Hazim Al Madani Law Firm Abdullah A. Al Fallaj Law Firm Eyad Reda Debt Collection Companies 25 Industry experts, Veterans and Consultants Industry Experts and Consultants Stakeholder’s Composition Director and CEO 13% Product and Marketing Manager 25% Operations & Logistics Manager 40% Others (Store Managers, Category Managers, Sales Executives) 22% © Licensed product of Ken Research; should not be copied

12. 12 KSA Debt Collection Market KEY FACTORS CONSIDERED 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 © Licensed product of Ken Research; should not be copied

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