Tamara: Pioneering the Buy Now, Pay Later Revolution in Saudi Arabia and the GCC
In the dynamic landscape of financial technology, Tamara has emerged as a trailblazer, transforming the way consumers in Saudi Arabia and the Gulf Cooperation Council (GCC) region shop, pay, and manage their finances. As the first Saudi fintech unicorn, Tamara’s innovative approach to Buy Now, Pay Later (BNPL) services has redefined consumer finance, offering flexible, Sharia-compliant payment solutions that resonate with the region’s diverse population.
Founding Vision and Early Growth
Established in late 2020 by Saudi entrepreneurs Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, Tamara was conceived to address the growing demand for flexible payment options in the Middle East. Recognizing the limitations of traditional credit systems and the increasing reliance on cash-on-delivery methods, the founders envisioned a platform that would empower consumers with more control over their purchases while supporting merchants in boosting sales.
Tamara’s early adoption of the BNPL model provided consumers with the ability to split payments into manageable installments without incurring interest or fees. This approach quickly gained traction, leading to rapid user growth and establishing Tamara as a key player in the region’s fintech ecosystem.
Achieving Unicorn Status
In December 2023, Tamara reached a significant milestone by securing $340 million in a Series C funding round, elevating its valuation to $1 billion and earning the distinction of being Saudi Arabia’s first fintech unicorn. The funding round was co-led by prominent investors SNB Capital and Sanabil Investments, a wholly owned company by the Public Investment Fund (PIF), with participation from Shorooq Partners, Pinnacle Capital, Impulse, and existing backers like Coatue, Endeavor Catalyst, and Checkout.com .
This substantial investment underscored investor confidence in Tamara’s business model and its potential to drive financial innovation across the GCC. The company announced plans to utilize the funds to expand its product offerings beyond BNPL, targeting opportunities in shopping, payments, and banking services throughout the region.
Innovative BNPL Services
Tamara’s core offering revolves around providing consumers with flexible payment options that align with their financial needs and preferences. The platform allows users to split their purchases into two, three, or four installments, or opt to pay in full, all without incurring late fees . This flexibility caters to a wide range of financial situations, enabling consumers to manage their budgets effectively and make purchases with confidence.
The user-friendly interface and seamless integration with merchants ensure a hassle-free shopping experience. Tamara’s services are accessible both online and in-store, providing consumers with consistent payment solutions across various retail environments.
Expanding Merchant Network
Tamara has established partnerships with over 26,000 merchants across diverse sectors, including fashion, electronics, home goods, and travel . Notable partners include SHEIN, IKEA, noon, Farfetch, Jarir, and eXtra, allowing consumers to enjoy Tamara’s payment solutions across a wide array of shopping experiences.
These collaborations not only enhance the consumer experience but also provide merchants with tools to increase sales and customer loyalty. By offering flexible payment options, merchants can attract a broader customer base and encourage repeat business.
Sharia Compliance and Financial Inclusion
Understanding the cultural and religious context of its primary markets, Tamara ensures that all its services are fully Sharia-compliant. This commitment aligns with the values of its user base and promotes financial inclusion by offering ethical financing options accessible to a broader segment of the population.
Tamara’s focus on financial inclusion extends to supporting small and medium-sized enterprises (SMEs) by providing them with the tools and services needed to thrive in a competitive market. By facilitating increased consumer spending and supporting SMEs through its merchant partnerships, Tamara contributes to job creation and economic diversification, key objectives of Saudi Arabia’s Vision 2030 initiative.
Regulatory Milestones and Market Expansion
In March 2025, Tamara achieved a significant regulatory milestone by receiving approval from the Saudi Central Bank (SAMA) to offer consumer finance and BNPL services . This approval not only legitimizes Tamara’s operations but also reflects SAMA’s commitment to supporting the growth of the finance sector and promoting innovative solutions that enhance financial inclusion across Saudi Arabia.
Tamara’s expansion efforts have extended beyond Saudi Arabia, with services now available in the United Arab Emirates, Kuwait, and Bahrain . This regional presence positions Tamara as a leading fintech platform in the GCC, catering to a diverse and growing customer base.
As Tamara continues its remarkable ascent in the fintech landscape, it stands as a beacon of innovation, regional empowerment, and digital transformation. Its success story is not only about pioneering the Buy Now, Pay Later model in Saudi Arabia but about strategically aligning with the Kingdom’s Vision 2030 to modernize financial services and promote inclusive economic growth.
Tamara’s commitment to Sharia-compliant, interest-free payment options has resonated deeply with regional consumers, earning trust across cultural and financial divides. Beyond consumer appeal, its partnerships with top-tier merchants, strategic backing from major investment entities, and robust regulatory alignment with the Saudi Central Bank reflect a company that is both commercially savvy and socially attuned.
Strategic Funding and Future Outlook
In addition to equity funding, Tamara has secured significant debt financing to support its growth initiatives. In November 2023, the company expanded its lending capacity to $400 million through a warehouse facility arranged by Goldman Sachs and Shorooq Partners . This financial backing enables Tamara to scale its operations, enhance its product offerings, and explore new market opportunities.
Looking ahead, Tamara aims to evolve into a comprehensive financial platform, offering a suite of services that cater to the evolving needs of consumers and businesses alike. The company’s vision includes expanding its footprint across the MENA region and introducing new products that further simplify and enhance the shopping and payment experience.
Conclusion
Tamara’s innovative approach to BNPL services has not only transformed the consumer finance landscape in Saudi Arabia and the GCC but also set a new standard for fintech solutions in the region. By combining technological innovation with cultural sensitivity and a commitment to financial inclusion, Tamara continues to empower consumers and drive economic growth, embodying the spirit of progress that defines the modern Middle East. With a valuation exceeding $1 billion and services now available across multiple GCC countries, Tamara is more than just a fintech startup—it is a symbol of the region’s capacity to lead in financial innovation on the global stage. As the company expands into new verticals such as banking, e-commerce, and SME support, its trajectory suggests a future where Tamara is not only a payment solution but a fully integrated financial ecosystem. The next phase of Tamara’s growth promises to redefine how the Middle East shops, pays, and prospers.
