Tabby Secures SAMA Finance Licences to Launch Long-Term Credit and SME Funding in Saudi Arabia

Quick Summary

Tabby has secured a consumer finance licence and SME finance licence from the Saudi Central Bank (SAMA). This regulatory milestone allows Tabby to offer extended payment plans for high-value purchases up to SAR 50,000 and provide essential working capital to businesses across Saudi Arabia.

How does the new consumer finance licence benefit Saudi shoppers?

The acquisition of a consumer finance licence enables Tabby to move beyond its traditional four-installment model. Saudi consumers can now access longer payment plans for significant life investments, ranging from home furnishings to educational courses. By leveraging a Shariah-compliant Murabaha structure, Tabby ensures that costs are fixed upfront with no late fees or compounding interest, providing a transparent alternative to traditional credit cards.

• Maximum credit limits of up to SAR 50,000 for eligible users.
• Minimum purchase threshold of SAR 2,000 for extended plans.
• Key retail partners including IKEA, Noon, and flynas already integrated.
• New market categories unlocked, such as used cars and short-term rentals.

What does the SME finance licence mean for Saudi businesses?

By securing an SME finance licence, Tabby is evolving into a comprehensive financial ecosystem for its 65,000+ merchant partners. This licence allows the platform to provide direct working capital to retailers, addressing a critical gap in the Saudi market for flexible business funding. This initiative directly supports the Saudi Vision 2030 goals by fostering a more robust and digitally-enabled private sector.

Hosam Arab, CEO and Co-Founder of Tabby, said: "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."

How does this move strengthen Tabby's market position?

Securing these dual licences from the Saudi Central Bank (SAMA) solidifies Tabby's transition from a niche BNPL provider to a full-scale regulated financial institution. Having graduated from the SAMA sandbox in 2025, Tabby now possesses the regulatory authority to compete with traditional banks in the high-value lending space while maintaining its tech-first user experience. This expansion into regulated consumer and SME finance is expected to significantly increase the platform's Total Addressable Market (TAM) across the GCC.

FF NEWS TAKE:

This is a massive power move. By securing a consumer finance licence, Tabby isn't just facilitating retail therapy; it's entering the infrastructure of Saudi life - cars, education, and business growth. SAMA’s endorsement proves that Tabby has matured beyond the 'startup' phase into a systemic player. This move effectively bridges the gap between fintech agility and banking-grade reliability, making Tabby the primary challenger to traditional retail banking in the Kingdom.