Beyond access: who remains digitally excluded in a digitally advanced economy? Evidence from Saudi Arabia

Purpose Digital financial services have expanded rapidly in Saudi Arabia, amid rapid digital transformation under Saudi Vision, 2030 and widespread digital infrastructure. However, high levels of formal access do not necessarily imply active digital use. This paper examines digital financial exclusion in Saudi Arabia by focusing on individuals who report no use of digital financial services despite high levels of account ownership and digital availability. Design/methodology/approach The study uses nationally representative microdata from the 2025 Global Findex database. Survey-weighted probit models are estimated to identify demographic, socioeconomic, and financial factors associated with complete non-use of digital financial services. Additional specifications incorporate financial behavior and financial resilience, alongside robustness checks that exclude account ownership. Findings Descriptive evidence shows that nearly one quarter of adults in Saudi Arabia remain digitally excluded, even in a context of high formal account ownership. Regression results indicate that digital exclusion is shaped primarily by structural socioeconomic factors rather than by demographics or location. Higher education and labor market participation substantially reduce the likelihood of digital exclusion, while age, gender, income, and urban residence play a limited role once these factors are controlled for. Models incorporating financial behavior highlight the importance of broader financial capability, and robustness exercises confirm that these patterns persist even when account ownership is excluded. Practical implications The findings suggest that policies aimed at promoting inclusive digital finance in Saudi Arabia should move beyond access expansion. Strengthening human capital, supporting labor market attachment, and enhancing financial capability are likely to be more effective than infrastructure-focused interventions alone. From a social policy perspective, this matters because as everyday payments and services increasingly shift to digital channels, a segment of the population may face higher costs and fewer options if they remain disconnected from routine digital transactions. Originality/value This study contributes to the digital finance literature by shifting attention from access and adoption to complete digital exclusion in a high-income, digitally advanced economy. It shows that digital exclusion can persist even under favorable institutional conditions and reflects deeper patterns of socioeconomic integration rather than technological shortcomings.

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Publication Details

Journal
International Journal of Sociology and Social Policy
Published
2026-06-12
DOI
https://doi.org/10.1108/ijssp-01-2026-0072
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
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article

Beyond access: who remains digitally excluded in a digitally advanced economy? Evidence from Saudi Arabia

Abdelhalem Mahmoud Shahen, Mesbah Fathy Sharaf
International Journal of Sociology and Social Policy
Microfinance and Financial Inclusion
article

Beyond access: who remains digitally excluded in a digitally advanced economy? Evidence from Saudi Arabia

Abdelhalem Mahmoud Shahen, Mesbah Fathy Sharaf
article en

Abstract

Purpose Digital financial services have expanded rapidly in Saudi Arabia, amid rapid digital transformation under Saudi Vision, 2030 and widespread digital infrastructure. However, high levels of formal access do not necessarily imply active digital use. This paper examines digital financial exclusion in Saudi Arabia by focusing on individuals who report no use of digital financial services despite high levels of account ownership and digital availability. Design/methodology/approach The study uses nationally representative microdata from the 2025 Global Findex database. Survey-weighted probit models are estimated to identify demographic, socioeconomic, and financial factors associated with complete non-use of digital financial services. Additional specifications incorporate financial behavior and financial resilience, alongside robustness checks that exclude account ownership. Findings Descriptive evidence shows that nearly one quarter of adults in Saudi Arabia remain digitally excluded, even in a context of high formal account ownership. Regression results indicate that digital exclusion is shaped primarily by structural socioeconomic factors rather than by demographics or location. Higher education and labor market participation substantially reduce the likelihood of digital exclusion, while age, gender, income, and urban residence play a limited role once these factors are controlled for. Models incorporating financial behavior highlight the importance of broader financial capability, and robustness exercises confirm that these patterns persist even when account ownership is excluded. Practical implications The findings suggest that policies aimed at promoting inclusive digital finance in Saudi Arabia should move beyond access expansion. Strengthening human capital, supporting labor market attachment, and enhancing financial capability are likely to be more effective than infrastructure-focused interventions alone. From a social policy perspective, this matters because as everyday payments and services increasingly shift to digital channels, a segment of the population may face higher costs and fewer options if they remain disconnected from routine digital transactions. Originality/value This study contributes to the digital finance literature by shifting attention from access and adoption to complete digital exclusion in a high-income, digitally advanced economy. It shows that digital exclusion can persist even under favorable institutional conditions and reflects deeper patterns of socioeconomic integration rather than technological shortcomings.

International Journal of Sociology and Social Policy
University of Alberta (CA), Imam Mohammad ibn Saud Islamic University (SA), Islamic University (BD)
Reduced inequalities
Openalex Percentile: Top 2%
Microfinance and Financial Inclusion
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