Consumer Protection in the Saudi Banking Sector: Legal Remedies and Regulatory Gaps

Abstract

Consumer protection in the financial sector has become increasingly significant in the Kingdom of Saudi Arabia as the state pursues economic diversification under Vision 2030. The Saudi Central Bank (SAMA) has taken a leading role in developing a legal and regulatory framework that seeks to safeguard consumers, ensure transparency, and strengthen trust in financial markets. In recent years, the complexity of financial products, the rise of digital banking, and the expansion of fintech have all amplified the need for robust consumer safeguards. This article provides an academic analysis of the consumer protection regime in the Saudi banking sector, examining legal instruments, remedies available to consumers, and regulatory gaps. While the Saudi framework reflects significant progress, challenges remain, including fragmented regulations, limited redress mechanisms, inconsistent enforcement, and the absence of a statutory financial ombudsman. The article situates Saudi reforms within the wider context of financial consumer protection scholarship and international best practices, offering recommendations to reinforce regulatory effectiveness, operational transparency, and long-term consumer confidence in the evolving financial landscape.