Consumer finance and BNPL services now licensed for Tamara under the SAMA regulatory framework
Tamara Secures Saudi Central Bank License, Expands Regional Presence
Tamara, a leading fintech company, has received an official license from the Saudi Central Bank (SAMA) to provide consumer finance and buy-now-pay-later (BNPL) services. This milestone marks a significant step forward in Tamara's journey, enabling the company to serve a broader customer base and diversify its financial product offerings.
With this license, Tamara can now offer financing solutions exceeding SAR 5,000 ($1,333). Users of Tamara's BNPL platform can split their purchases into four installments, making it an attractive option for many consumers.
Tamara's BNPL platform is currently operational in Saudi Arabia, UAE, and Kuwait. The company is now one of 65 finance companies licensed by SAMA, reflecting the growing importance of fintech in the region.
Expansion in UAE Market
Tamara is aggressively expanding in the UAE BNPL market, which remains highly competitive and rapidly evolving. The company is strengthening its footprint alongside other local players like Tabby and Spotii, with the UAE Central Bank's regulatory framework encouraging more structured and compliant BNPL offerings.
Strategic Partnerships
To broaden its reach, Tamara partnered with Amazon Payment Services, a leading digital payments provider in the MENA region. This partnership leverages Tamara’s Shariah-compliant BNPL products to further penetrate regional markets.
Backing by Public Investment Fund
The Public Investment Fund (PIF) of Saudi Arabia supports Tamara as part of its fintech investments. PIF's involvement fosters innovation in consumer finance and digital payment solutions. PIF is also involved in pilot projects like the Central Bank Digital Currency (CBDC) in Saudi Arabia, indicating a strong government institutional support environment for companies like Tamara.
Market Positioning and Regulatory Environment
Tamara operates in a favorable environment where financial regulators in both Saudi Arabia and the UAE are enhancing oversight to promote responsible lending and consumer protection in BNPL. The Saudi Central Bank’s licensing signifies regulatory confidence in Tamara’s business model, enabling it to scale its consumer finance services responsibly.
In summary, with the Saudi Central Bank license, Tamara is accelerating its regional growth by expanding market presence in the UAE, forming strategic alliances such as with Amazon Payment Services, and benefiting from strong institutional backing by Saudi Arabia’s Public Investment Fund. These developments position Tamara as a major player in the evolving and increasingly regulated BNPL and consumer finance sector across the Gulf Cooperation Council (GCC) region.
Abdulmajeed Alsukhan, Co-Founder of Tamara, described receiving preliminary approval as "the culmination of our ongoing efforts to deliver innovative financial solutions that meet our customers' needs." With this license, Tamara is well-positioned to continue its growth trajectory and contribute to the digital transformation of the financial sector in the MENA region.
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Tamara, buoyed by its newfound ability to offer financing solutions beyond SAR 5,000, is now poised to make significant inroads in the UAE business sector through its buy-now-pay-later (BNPL) platform. With the UAE Central Bank encouraging more structured and compliant BNPL offerings, Tamara's strategic partnership with Amazon Payment Services could bolster its presence in the competitive and evolving UAE market.
As part of its strategy to broaden reach, Tamara has garnered the support of Saudi Arabia's Public Investment Fund (PIF), a key player in fintech investments in the region. With the favorable regulatory environment, Tamara is primed to capitalize on opportunities to join the ranks of major players in the Gulf Cooperation Council (GCC) region, revolutionizing consumer finance and digital payment solutions.
