Tabby, the UAE-founded financial services app, has been granted a consumer finance licence and an SME finance licence by the Saudi Central Bank (SAMA), expanding what it can offer customers and merchants across the Kingdom beyond its existing buy now, pay later (BNPL) product.
The new licences allow Tabby to introduce longer instalment plans for larger purchases, alongside the interest-free four-payment option it already provides. Customers can now finance purchases of up to SAR 50,000, spread across as many as 12 monthly payments, on transactions over SAR 2,000. The SME licence separately allows Tabby to extend working capital financing to retailers operating on its platform.
The extended payment plans are already live with a number of Tabby’s retail partners, including Noon, Fitness Time, Almanea, IKEA, Almosafer, Almatar and flynas. They are being rolled out gradually, starting with an initial group of customers, before becoming available to all eligible users over the coming weeks.
Tabby says the plans are structured to remain Shariah-compliant, built on a Murabaha model in which the total cost is agreed and fixed before the plan begins. Under this structure, the amount owed does not increase over the life of the plan, there is no compounding, and no late fees apply. The original four-payment, interest-free BNPL option remains unchanged and continues to carry no fees.
The longer financing terms also open the door to categories that involve higher transaction values than typical retail purchases, among them education, travel, used cars and short-term rentals. Merchants in these sectors will be able to offer Tabby at checkout, giving their customers the option to pay over an extended period.
On the merchant side, the SME finance licence allows Tabby to provide working capital directly to retailers using its platform, giving smaller businesses a route to funding aimed at supporting their growth.
The two new licences build on a regulatory track record Tabby has been establishing in the Kingdom. The company graduated from SAMA’s regulatory sandbox and secured its BNPL licence in 2025, and the consumer and SME finance licences mark a further step in that process.
SAMA grants finance licences only to companies that meet its standards on compliance, security and customer protection, and the move aligns with Saudi Vision 2030’s broader goal of widening access to fair and transparent financial services.
“Tabby already gives millions of people flexibility and control over their money,” said Hosam Arab, CEO and Co-Founder of Tabby. “Now we can extend that to the bigger purchases in life, paying for a course, furnishing a home, booking a holiday. It answers clear demand from our customers and puts the same control in their hands.”
Tabby reports more than 25 million registered users and over 65,000 partner businesses across the GCC. With its new finance licences, the company is positioning itself to bring longer, regulated financing options to Saudi Arabia, its largest market, and to expand further into higher-value purchase categories where demand for flexible payment options has been growing.
No reviews found.
No reviews found.
No reviews found.
No reviews found.
By
Sam Reid
