Tabby, a prominent financial services application, has significantly expanded its capabilities within Saudi Arabia after securing two key licenses from the Saudi Central Bank (SAMA). The company received both a consumer finance license and an SME finance license, enabling it to offer a broader range of regulated financial products. This development allows Tabby to introduce long-term payment plans for consumers and provide working capital to businesses, marking a major milestone in its largest market.
Enhanced Flexibility for Consumers
The new consumer finance license allows Tabby to offer extended payment plans for larger purchases, a direct response to customer demand for more flexible financing. Shoppers can now finance purchases over SAR 2,000 with payment schedules of up to 12 months and a credit limit reaching SAR 50,000. This service is already active with leading retailers such as Noon, IKEA, and Fitness Time for an initial group of users.
This new offering complements Tabby's popular four-payment, interest-free installment option, providing a comprehensive suite of payment solutions. The longer plans are designed to support significant life purchases in sectors like education, travel, and home furnishing. By catering to higher-value transactions, Tabby is expanding its market reach and utility for its extensive user base of over 25 million registered users.
Commitment to Ethical and Transparent Finance
Adhering to regional financial principles, the extended payment plans are fully Shariah-compliant and structured under a Murabaha framework. This ensures that the cost of financing is agreed upon upfront and remains fixed, preventing any increase in what the customer owes over time. The model explicitly prohibits compounding interest and late fees, reinforcing Tabby's commitment to transparent and fair financial services.
Empowering Business Growth
Beyond consumer services, the SME finance license marks Tabby's entry into business financing, allowing it to provide working capital to its retail partners. This new capability will help small and medium-sized enterprises on its platform fund their operational needs and invest in growth initiatives. The service strengthens Tabby's value proposition for the more than 65,000 businesses it collaborates with across the GCC.
A Strategic Regulatory Achievement
Obtaining these licenses from SAMA represents a significant regulatory milestone, underscoring Tabby's compliance with stringent security and consumer protection standards. This achievement follows the company's successful graduation from SAMA's regulatory sandbox and its acquisition of a buy now, pay later permit in 2025. The move is also in alignment with Saudi Vision 2030's objective to broaden access to innovative and equitable financial services.
Hosam Arab, CEO and Co-Founder of Tabby, stated that the expansion directly addresses customer needs for financing major life events like education or furnishing a home. He emphasized that the new services maintain the same level of control and flexibility that millions of users already rely on. This strategic direction reinforces Tabby's mission to empower individuals in managing their finances effectively and responsibly.
The acquisition of these dual licenses solidifies Tabby's leadership position in Saudi Arabia and paves the way for substantial growth. By diversifying into regulated long-term financing and SME capital solutions, the company is strategically positioned to meet a wider spectrum of financial needs. This expansion enhances its ecosystem for its millions of users and deepens its integration into the region's burgeoning digital economy.