Argaam's read on the sector after SAMA lifted the BNPL financing ceiling to SAR 10,000 puts the Saudi market at $4.96 billion in 2025, $5.29 billion in 2026 and $7.31 billion by 2031, a 6.66% compound rate overall, against 28.85% for bank-linked BNPL services and 33.97% for the healthcare segment. Tabby ran an effective financing yield of 19.5% on $1.6 billion of assets in Q1 2026, Tamara 31.7% on $1.8 billion.
There is no longer a single economic model for BNPL services. The 19.5% and 31.7% market segments operate as distinct businesses. Banks, compounding at 28.85%, benefit from lower funding costs and established customer relationships. As a result, standalone BNPL providers should prioritize their cost of capital over market share.
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Saudi VC halved, then halved again
Saudi venture capital funding fell 74% year on year to $219 million in H1 2026, from roughly $853 million in H1 2025, across 72 deals, down 41% from 122. Fintech took 67% of dollars ($147 million); the Kingdom held a 34% share of MENA deal count, with early-stage rounds at 83% of all deals.
Deal count fell 41% while dollar volume fell 74%, the average check shrank even faster than the number of deals. Investors aren't just doing less; they're doing smaller, which is the more telling half of this number.
Al Rajhi tops SR13.7bn
H1 bank profits: Al Rajhi SR13.76bn (+14.15%, highest of any lender), SNB SR13.02bn, Riyad SR5.26bn, Alinma SR3.27bn; total credit a record SR3.2tn, +16.2% YoY
The takeaway: Al Rajhi out-earned every bank and grew fastest; scale and speed together are rare, worth studying.
The insurance market doubled
Saudi Arabia's insurance market reached SR84 billion in 2025, up from SR42 billion in 2021, effectively doubling in four years. Health and motor insurance accounted for 89% of premium growth, with health insurance alone contributing to 68% of that increase. Growth is decelerating sharply: 26.9% in 2022, 22.7% in 2023, 16.3% in 2024, 10.7% in 2025.
The market doubled in four years while its growth rate halved twice, from 26.9% to 10.7%, as the sector moves from expansion into maturity, where the next phase competes on retention rather than acquisition.
