Tabby Secures SAMA Approval for SME Lending and Higher-Value Consumer Financing
Tabby has obtained consumer and SME finance licenses from the Saudi Central Bank (SAMA), allowing the financial services app to expand beyond its existing split-payment offerings in Saudi Arabia. The approval enables the company to provide longer-term financing for larger purchases and working capital funding for merchant partners on its platform.
Under the new consumer finance license, Tabby can finance purchases above SAR 2,000, with credit limits reaching up to SAR 50,000. The extended payment plans are structured using a Shariah-compliant Murabaha model, which sets the cost upfront and keeps repayments fixed throughout the term. According to the company, this means the amount owed does not increase over time and no late fees are applied.
Tabby said it will continue to offer its existing interest-free split-payment products alongside the new financing option. The expanded offering is expected to support higher-value spending categories, including education, travel, used cars, and short-term rentals.
Several major merchants have already integrated Tabby’s service, including Noon, Fitness Time, IKEA, Almanea, Almosafer, Almatar, and flynas. These partnerships position the company to distribute its new financing products through an established retail network across the Kingdom.
The SME finance license gives Tabby permission to provide working capital to merchant partners using its platform. This marks a further step into business lending, with the company aiming to support retailers’ operational growth through access to financing.
Hosam Arab, CEO and Co-Founder of Tabby, said the company’s existing tools already provide millions of users with flexibility and control over their money. He added that the new approval will extend those benefits to larger purchases such as courses, home furnishings, and travel bookings, responding to customer demand for more payment flexibility.
SAMA’s approval follows Tabby’s graduation from the central bank’s regulatory sandbox, moving the company into formal supervisory oversight. The development reflects a broader regulatory pathway for fintech firms seeking to scale lending products in Saudi Arabia while operating within approved frameworks.
Industry Analysis
Tabby’s latest licenses highlight the growing scope of buy-now-pay-later and embedded finance models in Saudi Arabia. By adding both consumer financing and SME lending, the company is broadening its role from a payments provider into a more comprehensive financial services platform. This could increase competition in the Kingdom’s consumer credit and merchant financing segments, particularly as demand rises for regulated, Shariah-compliant financing options.
The approval also signals continued regulatory support for fintech innovation in Saudi Arabia, especially for products that align with formal oversight and consumer protection standards. For merchants, access to working capital through platform-based lending may improve liquidity and support expansion. For consumers, longer repayment terms may make higher-value purchases more accessible while preserving fixed and transparent repayment structures.
