GCC Buy Now Pay Later Market Trends, Growth, and Demand Forecast 2026-2034

IMARC Group, a leading global market research and management consulting firm, has published its latest market intelligence report on the GCC Buy Now Pay Later Market. The GCC buy now pay later market size was valued at USD 225.2 Million in 2025 and is projected to reach USD 1,278.6 Million by 2034, exhibiting a CAGR of 21.28% during 2026-2034. Growth is being driven by the rise of online shopping, consumer preference for budget control and convenience, better risk assessment models, and merchants using buy now pay later to lift cart conversion and customer engagement.

Buy now pay later has become one of the fastest-moving parts of Gulf consumer finance, letting shoppers split purchases into installments at checkout without relying on credit cards. Regional leaders Tabby and Tamara report about 25 million registered users and about 20 million customers respectively, and both are moving beyond simple pay-in-installments products into larger tickets, wallets and working capital for merchants. At the same time, regulators are formalizing the sector, with the Saudi Central Bank licensing BNPL providers and raising the maximum financing limit to SAR 10,000 in a circular dated 24 December 2025, and the Central Bank of the UAE recognizing BNPL as a regulated short-term credit product. Combined with record funding for leading platforms and growing merchant adoption across online and point-of-sale channels, these forces are reshaping the competitive landscape and setting the stage for durable, long-term growth across Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman, driven by evolving GCC buy now pay later market trends.

GCC Buy Now Pay Later Market at a Glance:

• Market Size (2025): USD 225.2 Million
• Market Forecast (2034): USD 1,278.6 Million
• Growth Rate (2026-2034): CAGR of 21.28%
• Base Year: 2025 | Historical Period: 2020-2025 | Forecast Period: 2026-2034

How AI is Reshaping the Future of the GCC Buy Now Pay Later Market

• Risk Assessment Models: The report highlights better risk assessment models for judging creditworthiness and repayment likelihood as a core growth driver. SAMA’s December 2025 limit increase to SAR 10,000 does not mean all customers automatically qualify, with individual limits depending on creditworthiness and repayment capacity in line with responsible lending principles.
• Beyond BNPL Product Expansion at Tabby: Using SAMA consumer and SME finance permissions, Tabby offers larger tickets and longer tenors, with plans of up to SAR 50,000 over up to 12 months structured as Shariah-compliant Murabaha, alongside working capital facilities for retailers and, in the UAE, a Stored Value Facilities license behind Tabby Cash, a fee-free debit-style account.
• Asset-Backed Funding for Tamara: In September 2025, Tamara secured a facility of up to USD 2.4 billion, backed by Goldman Sachs, Citi and Apollo Global Management, with USD 1.4 billion funded upfront, to support product diversification, including new credit and payment offerings, and further regional expansion.

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GCC Buy Now Pay Later Market Trends and Drivers:

Demand for buy now pay later in the GCC is being underpinned by the growth of online shopping and consumers who prioritize budget control, convenience and access to products without carrying credit card debt. Scale is building quickly, with Tabby reporting about 25 million registered users and about 70,000 merchants, including Amazon and Shein, and Tamara reporting about 20 million customers and about 87,000 businesses across Saudi Arabia, Kuwait, Bahrain and the UAE.

The market’s structural differentiator is regulatory formalization. Saudi Arabia’s BNPL rules require a local headquarters with at least SAR 5 million in capital, prohibit cash collection and set Saudi workforce requirements, while the Central Bank of the UAE treats BNPL as short-term credit of up to 12 months with a borrower cap of AED 20,000 or three months of verified net income, whichever is lower, and a 30 percent ceiling on total fees.

A third driver is expansion into larger tickets and new products. SAMA raised the maximum BNPL financing limit to SAR 10,000, and analysts expect higher average transaction values and growth in categories such as electronics and furniture, a dynamic that is set to intensify over the coming decade. Analysts also caution that multiple installment plans can become a significant monthly burden, and Blominvest data for the first quarter of 2026 shows credit losses of 3.2 percent of assets at Tabby against 10.0 percent at Tamara, underlining the importance of underwriting quality.

Government Schemes and Regulatory Frameworks Driving Demand:

• SAMA BNPL Rules and Licensing: BNPL entered SAMA’s regulatory sandbox in 2020, was regulated in 2021 and received company rules in 2023, with providers required to set up a local headquarters with at least SAR 5 million in capital and an initial workforce of at least 50 percent Saudi nationals, rising to 75 percent. In 2026, SAMA licensed Tqniyat Daftar Company to offer BNPL services, bringing the total number of SAMA-licensed finance companies to 76.
• SAMA Higher BNPL Financing Limit: In a circular dated 24 December 2025, SAMA raised the maximum BNPL financing limit to SAR 10,000, with individual limits still based on creditworthiness and repayment capacity. Under the initial 2023 rules, the maximum credit cap was SAR 5,000 with a tenure of less than 12 months.
• CBUAE Finance Companies Regulation: Introduced on 29 September 2023, the regulation recognizes BNPL as consumer short-term credit for specified goods or services, with credit of up to 12 months and no interest, a borrower cap of AED 20,000 or three months of verified net income, a cap of 30 percent of the original credit amount on total fees and a credit report review when a borrower’s total credit limit exceeds AED 5,000.

GCC Buy Now Pay Later Market Industry Segmentation:

The report has segmented the market into the following categories:

Breakup By Channel:

• Online
• Point of Sale (POS)

The report provides a detailed breakup of online and point-of-sale BNPL. Growth in online shopping is a core driver, while merchants use BNPL to raise cart conversion and customer engagement.

Breakup By Organization Size:

• Large Enterprises
• Small and Medium Enterprises

Merchant adoption spans large and small businesses, with Tabby serving about 70,000 merchants and Tamara about 87,000 businesses, and Tabby offering working capital facilities to retailers on its platform.

Breakup By End Use:

• Consumer Electronics
• Fashion and Garment
• Healthcare
• Leisure and Entertainment
• Retail
• Others

Analysts expect higher average transaction values and an expansion of BNPL into electronics and furniture as limits rise, alongside continued use in fashion, healthcare and leisure.

Breakup By Purchase:

• Small Ticket Items (up to USD 300)
• Mid Ticket Items (USD 300 to USD 1,000)
• Higher Priced Items (above USD 1,000)

Regulatory changes are pushing BNPL up the ticket ladder, with SAMA’s SAR 10,000 maximum limit and Tabby’s plans of up to SAR 50,000 over up to 12 months under its consumer finance permissions.

Breakup By Country:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

Saudi Arabia and the UAE are the most regulated markets, with SAMA and CBUAE frameworks in place, while Tamara operates across Saudi Arabia, Kuwait, Bahrain and the UAE.

Competitive Landscape:

The GCC buy now pay later market is shaped by fast-growing regional fintechs, now expanding into broader consumer finance. Key players include:

• Tabby
• Tamara
• Tasheel

Tabby, founded in 2019 in the UAE and headquartered in Riyadh since 2023, says it has been profitable since 2023, while Tamara became Saudi Arabia’s first fintech unicorn after a USD 340 million Series C in December 2023. Tabby funds itself through senior institutional Murabaha facilities, Tamara through asset-backed securitisation and Tasheel through Murabaha facilities from Saudi banks, according to Argaam.

What Does The Full Report Cover?

• Historical, current, and forecast market size for the GCC buy now pay later market from 2020 to 2034, in Million USD
• Market breakup by channel, organization size, end use, purchase size, and country
• Country-level analysis covering Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, and Oman
• Key growth drivers, restraints, and opportunities shaping the market
• Porter’s Five Forces analysis and value chain assessment
• Competitive landscape, market structure, and degree of competition
• Detailed profiles of major buy now pay later companies in the GCC

Recent News and Developments in the GCC Buy Now Pay Later Market

• February 2025: Tabby raised USD 160 million in a Series E round at a USD 3.3 billion valuation, while expanding beyond BNPL.
• September 2025: Tamara secured a facility of up to USD 2.4 billion, backed by Goldman Sachs, Citi and Apollo, with USD 1.4 billion funded upfront and USD 1 billion available over three years.
• December 2025: SAMA issued a circular on 24 December raising the maximum BNPL financing limit to SAR 10,000, with individual limits depending on creditworthiness and repayment capacity.
• Mid-2026: SAMA licensed Tqniyat Daftar Company to offer BNPL services, bringing the total number of SAMA-licensed finance companies to 76.
• September 2026: Tabby reported a USD 233 million Series F equity raise at a USD 6.5 billion valuation, led by Blue Pool Capital with HSG, Wellington Management and Arbor Ventures participating, with closing subject to regulatory clearance including from SAMA.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

Key Questions This Report Answers

• How big is the GCC buy now pay later market and what is its growth outlook through 2034?
• What are the key growth drivers, restraints, and opportunities in the GCC buy now pay later market?
• Which channel, organization size, end use, and purchase segments are driving the market?
• Which countries lead the GCC buy now pay later market, and why?
• How are SAMA and CBUAE regulations shaping the market?
• Who are the key players in the GCC buy now pay later market, and how is the competitive landscape evolving?
• How are risk assessment models and product expansion shaping the future of GCC buy now pay later?

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