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.
Explore more signals
Riyadh climbs forty-seven places
Riyadh rose 47 places to rank 50th worldwide among 1,000 cities across 163 countries in Oxford Economics' 2026 Global Cities Index, after placing 118th in 2024 and 97th in 2025; the index scores cities on five pillars and 27 sub-indicators covering economics, human capital, quality of life, environment and governance.
Moving from 118th to 50th in two years reflects both strong performance and city improvement. Companies considering a regional headquarters should highlight this in their internal proposals, as boards typically accept such external rankings without question.
Cash falls, cards rise
Saudi consumer spending reached SAR 144.95 billion in July 2026, up 8% from SAR 134.51 billion in July 2025. Point-of-sale spending was SAR 62.85 billion, up 7%, across 1.096 billion transactions on 2.5 million terminals. E-commerce through Mada cards rose 26% to SAR 37.63 billion across 197.6 million transactions, while cash withdrawals from 14,400 ATMs fell 3% to SAR 44.47 billion. There are 70.12 million issued bank cards.
The change involves switching from one channel to another, which means that if you are running a business aimed at consumers you should shift your investments from cash handling to digital acceptance rather than considering both as part of growth.
Five billion aimed at small firms
Monsha'at and STC Bank signed an agreement to provide Shariah-compliant financing of up to SAR 5 billion to micro, small and medium enterprises, with cash and non-cash facilities running up to 10 years and covering working capital, asset purchases, financing against point-of-sale proceeds and invoice and receivables financing. Saudi Arabia counted more than 1.7 million SMEs in 2025, employing around 8.8 million people and contributing 22.9% of GDP.
As cash flow becomes the primary assessment criterion, credit officers developing SME products at Saudi banks should focus on evaluating transaction history instead of balance sheets.
