BNPL Limit Saudi Arabia: SAMA Raises Cap to SAR 10K

Summary

“A new SAMA circular gives Saudi shoppers more room to use Buy Now, Pay Later services, raising the individual limit to SAR 10,000. Here’s what the update means for BNPL users and providers like Tabby and Tamara.”

Buy Now, Pay Later has become one of the most common ways for people in Saudi Arabia to shop online and in stores without paying the full amount upfront. Now, the Saudi Central Bank (SAMA) has made a major change to how much a single customer can borrow through BNPL. The financing limit has been raised from SAR 5,000 to SAR 10,000 per person, doubling what was allowed under the original 2023 rules.

This update comes through a new SAMA circular and applies to every licensed BNPL company operating in the Kingdom. If you use apps like Tabby or Tamara to split payments into instalments, this change directly affects how much you can borrow. Here is a full breakdown of what changed, why it happened, and what it means for you.

What Is the New BNPL Limit in Saudi Arabia?

SAMA’s new rule sets the maximum total outstanding financing for each individual consumer at SAR 10,000. This is not a per-purchase limit it is a cap on how much a person can owe across all their active BNPL instalment plans at any given time.

Previously, under the Rules for Regulating Buy-Now-Pay-Later Companies issued in December 2023, this ceiling was SAR 5,000. The increase was formalized through Circular No. 472038475, dated 04/07/1447H, which corresponds to 24 December 2025 on the Gregorian calendar. The update was later reported publicly through Okaz in mid-2026.

Importantly, SAMA has kept the flexibility to adjust this figure again in the future up or down depending on market conditions, consumer debt levels, and how the fintech sector evolves. So while SAR 10,000 is the current limit, it is not necessarily permanent.

Old Limit vs New Limit: A Quick Comparison

As the table shows, the core structure of BNPL lending in Saudi Arabia hasn’t changed only the borrowing ceiling has moved. Instalment limits, repayment channels, and the ban on cash collection all remain exactly as they were.

Key Terms of SAMA’s New BNPL Circular

Beyond the headline number, a few operational rules matter just as much for anyone using BNPL services:

Repayment stays electronic-only. Whether you pay through a bank transfer, card, or an app-linked payment method, cash is not accepted for settling BNPL instalments. This keeps every transaction traceable and reduces the risk of informal, unregulated lending.

Instalments are capped at 12. BNPL providers cannot stretch a repayment plan beyond 12 instalments, which keeps these products short-term by design rather than turning them into long-term consumer loans.

The limit applies per person, not per app. If you use both Tabby and Tamara, your combined outstanding balance across both platforms is expected to stay within the regulated ceiling, since BNPL companies are required to check a consumer’s credit record and repayment capacity before approving financing.

SAMA retains oversight of pricing. Administrative fees that BNPL companies can charge are also capped currently limited to 1% of the financing amount or SAR 50, whichever is lower though SAMA had earlier suspended the application of this fee altogether for a period, showing how closely the regulator monitors costs passed on to consumers.

Why SAMA Raised the BNPL Limit

The increase doesn’t happen in isolation it reflects how quickly the BNPL sector has grown in Saudi Arabia. A few factors likely drove the decision:

Market growth has been strong. Saudi Arabia’s BNPL gross merchandise value has been climbing steadily, with industry estimates placing it in the range of USD 1.1–1.5 billion in recent years and projecting continued double-digit annual growth through the end of the decade.

Consumer demand has shifted toward flexible payments. With a young, digitally active population over 70% of Saudis are under 35 and near-universal smartphone and social media use, BNPL has become a natural fit for how people shop, especially online.

The fintech sector has matured. Since the original 2023 rules, BNPL companies have built stronger compliance systems, credit-checking processes, and risk management practices. A higher limit reflects SAMA’s confidence that the sector can handle larger financing volumes responsibly.

Merchant adoption has expanded. Local BNPL providers now work with tens of thousands of merchants across fashion, electronics, and home goods, meaning a higher limit gives consumers more practical room to use BNPL for bigger, everyday purchases rather than just small items.

How This Affects Tabby, Tamara & Other Providers

Saudi Arabia’s BNPL market is dominated by a small group of well-funded players, and this rule change matters most to them.

Tabby has grown into one of the region’s best-funded fintechs, having reached unicorn status after a $200 million funding round that pushed its valuation to around $1.5 billion. A higher per-customer limit means Tabby can approve larger financing amounts without breaching regulatory caps, potentially increasing average transaction values on its platform.

Tamara, a Riyadh-based BNPL platform, has also raised significant capital including a $340 million round at a valuation above $1 billion and has scaled to more than 10 million registered users and over 30,000 merchant partners across Saudi Arabia and nearby markets. The new limit gives Tamara more room to serve customers who want to finance higher-value purchases.

For both companies, and any other licensed BNPL provider, the change means adjusting their internal credit-approval systems to reflect the new SAR 10,000 ceiling while still complying with SAMA’s requirement to verify each customer’s repayment capacity before extending financing.

What This Means for Consumers and Expats

If you live in Saudi Arabia and use BNPL services, the practical impact is straightforward: you can now potentially finance more through instalment plans than before. This could be useful for larger purchases electronics, furniture, or travel bookings that previously exceeded the SAR 5,000 ceiling.

However, a higher limit is not automatically a benefit. It also means it’s easier to build up a larger outstanding balance across multiple BNPL apps if you’re not tracking your spending carefully. SAMA’s own Responsible Lending Principles exist specifically because BNPL, despite being interest-free, can still lead to financial strain if repayments pile up across several providers at once.

For expats specifically, BNPL eligibility usually depends on having a valid Saudi ID (Iqama), a local bank account or payment method, and a clean credit history within the Kingdom. The higher limit doesn’t change these basic eligibility requirements it only changes how much you can borrow once approved.

BNPL Regulatory Background in Saudi Arabia

To understand why this update matters, it helps to see how far BNPL regulation has come in just a few years.

Alongside the financing limit, SAMA’s original 2023 framework also introduced requirements that BNPL companies hire at least 50% Saudi nationals, with that share rising over time toward 75%, and maintain strict data protection and anti-money laundering controls. These structural rules haven’t changed only the lending ceiling has been adjusted.

Responsible BNPL Use: Quick Tips

A bigger limit means more responsibility falls on the consumer. A few practical habits can help:

• Track every active BNPL plan across all apps, not just one, so you know your total outstanding balance.
• Avoid opening a new BNPL plan to pay off an existing one this is a common debt-trap pattern regulators are trying to prevent.
• Set repayment reminders around your salary date to avoid missed instalments and late fees.
• Use BNPL for planned purchases, not impulse buys, since the interest-free structure can make overspending feel less risky than it actually is.
• Check your remaining BNPL capacity before checkout, since providers now have more room to approve larger amounts.

How to Check Your BNPL Eligibility in Saudi Arabia

The higher limit doesn’t mean every user automatically qualifies to borrow SAR 10,000. Each BNPL provider still runs its own approval process, and SAMA requires companies to verify a customer’s credit record and repayment capacity before extending any financing. In practice, this usually depends on a few factors:

• Payment history: A track record of on-time repayments on previous BNPL plans generally increases your approved limit over time.
• Iqama or national ID status: Providers verify identity through Absher-linked systems or similar official channels, so your ID needs to be valid and active.
• Linked bank account or card: Since repayments must be electronic, you need a working local bank account or card connected to the app.
• Existing debt load: If you already have outstanding BNPL balances with other providers, this can affect how much additional financing you’re approved for.

New users typically start with a lower approved amount than the SAR 10,000 ceiling and see it increase gradually as they build a reliable repayment history. This is standard practice across most BNPL platforms in the region and is unlikely to change just because the regulatory cap has moved higher.

Final Thoughts

SAMA’s decision to raise the BNPL financing limit to SAR 10,000 reflects how much the Buy Now, Pay Later sector has grown and matured in Saudi Arabia since regulation began in late 2023. For consumers, it means more flexibility when it comes to bigger purchases. For providers like Tabby and Tamara, it opens the door to serving customers with higher-value financing needs. But the same principle applies as before: BNPL is a useful tool when used with a clear repayment plan, not a substitute for budgeting. As the market keeps growing, expect SAMA to keep adjusting these rules to balance consumer access with financial protection.

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