The Saudi Central Bank has officially granted Tabby finance licences to expand consumer and business credit options. Consequently, customers in Saudi Arabia can now finance larger purchases up to SAR 50,000 over 12 months. This development marks a significant expansion for the financial services apps sector in the Kingdom.
Previously, the platform only offered four interest-free monthly payments. However, the new consumer finance licence allows the company to offer longer payment terms. These extended plans are currently rolling out to a select group of users before becoming widely available.
SAMA Grants Tabby Finance Licences
Several major retailers have already integrated these longer payment options. Specifically, brands like Noon, Fitness Time, IKEA, Almanea, Almosafer, Almatar, and flynas are participating. Customers can use these plans for purchases exceeding SAR 2,000.
This expansion allows the company to enter high-value sectors. For example, customers can now use the service for education, travel, used cars, and short-term rentals. These categories typically require larger upfront payments than everyday retail transactions.
Shariah-Compliant Murabaha Structure
The new financing options are fully Shariah-compliant. Notably, they are built on a Murabaha structure with fixed costs agreed upfront. As a result, the amount a customer owes does not increase over time, and there are no late fees.
Meanwhile, the company continues to offer its standard interest-free split-payment options. This dual approach helps consumers manage their budgets without facing compounding debt. The company aims to maintain transparency across all its financial products.
Support for Small and Medium Enterprises
The SME finance licence enables the company to provide working capital to retailers. Consequently, businesses can access funding to support their growth within the digital economy. This initiative aligns with the broader goals of Saudi Vision 2030 to expand financial access.
“Tabby already gives millions of people flexibility and control over their money. 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.”
Hosam Arab, CEO and Co-Founder of Tabby
Regulatory Compliance and Growth
The company previously graduated from SAMA’s regulatory sandbox. Following this, it received its buy now, pay later licence in 2025. The new Tabby finance licences require strict adherence to SAMA’s standards for security and customer protection.
Currently, the platform serves more than 25 million registered users. It also partners with over 65,000 businesses across the GCC region. This regulatory milestone positions the company to expand its services in its largest market.
