Is BNPL regulated in the GCC?
In Saudi Arabia, yes. BNPL providers need a SAMA finance license, and Tamara Finance received one in March 2025. Tabby added consumer and SME finance licenses in July 2026.
In detail
In Saudi Arabia, yes. BNPL is a licensed activity supervised by the Saudi Central Bank (SAMA). Tamara Finance received a license for consumer finance and BNPL in March 2025. In July 2026, Tabby obtained consumer finance and SME finance licenses, which let it offer Shariah-compliant 12-month plans on purchases of SAR 2,000 to SAR 50,000.
How the products are built
Plans are interest-free in their basic pay-in-4 form and built on Murabaha structures for longer terms, in line with Islamic finance principles. Banks also offer installment payments on credit cards.
A fast-growing market
Buy now, pay later took off in the Gulf faster than almost anywhere. Tabby reported 25 million registered users and 70,000 business partners in September 2026. Tamara, founded in Riyadh, is active in Saudi Arabia, the UAE, Kuwait and Bahrain, and local players fill niches, such as Taly in Kuwait. Rules differ in each GCC state, so providers' licenses should be checked country by country.
What it means for payment operators
For operators serving Gulf merchants, BNPL is an expected checkout option. Working with licensed providers, connecting them as payment methods and activating them per merchant and country keeps the offer compliant where you operate.