Tamara’s $2.4B BNPL Deal in Saudi: Islamic Finance Meets Digital Lending
- Aysa Bilginer
- Sep 26
- 4 min read
Updated: Sep 27
Summary:
On Sept. 15, 2025, Riyadh-based fintech Tamara announced an up to $2.4 billion asset-backed financing facility[39] including a $1.4 billion initial draw backed by major global banks (Goldman Sachs, Citi) and Apollo funds.
The fully Shariah‑compliant deal (announced at Money20/20 Middle East) refinances an earlier $500 million loan and boosts Tamara’s lending power dramatically[39]. Its purpose is to fund rapid expansion of Tamara’s buy‑now‑pay‑later (BNPL) platform, already serving ~20 million users across the Gulf, and to develop new products.
Observers say this unprecedented $2.4B deal underscores Saudi Arabia’s push for a cashless economy and signals the Middle East’s fintech sector is maturing into global-scale finance.
Tamara (founded 2020 by Abdulmajeed Alsukhan et al.) is Saudi Arabia’s first fintech “unicorn” (>$1 billion valuation)[40]. It offers BNPL services essentially interest-free installment payments at major retailers (partners include SHEIN, IKEA, Noon, etc.). Tamara went unicorn in late 2023 after raising a $340 million Series C at over $1 billion valuation, with investors including Sanabil and SNB Capital (PIF’s investment arm)[41][42]. By 2025, Tamara had ~20 million registered customers and was integrated with 87,000 merchants[42]. The fintech surge coincides with Saudi Vision 2030 goals: the Kingdom aims for a 70% cashless society by 2025 and a robust financial sector to boost non-oil growth.
Tamara’s flagship BNPL service saw explosive growth during the pandemic and post-pandemic e-commerce boom. It competes with fellow Gulf startups (e.g. Tabby in UAE)[43]. As of September 2025, BNPL and digital payments in MENA are growing ~20% annually, on track to exceed $170 billion in transactions by 2025. Saudi regulators at the central bank (SAMA) have been supportive of fintech innovation, encouraging Shariah-compliant finance. In this environment, Tamara forged alliances with both local VC backers (Sanabil, SNB) and global investors. The Sept. 15 financing was announced in Riyadh, highlighting the Middle East’s rising profile in fintech capital.
Details of the Financing Structure
The $2.4 billion facility is structured as Shariah-compliant asset-backed debt. Goldman Sachs led the syndicate (joined by Citi and Apollo), and it expands a prior $500 million loan[39]. Of the total, $1.4 billion was funded upfront, with an additional $1 billion available over the next three years (subject to approvals)[44]. Unlike conventional loans, this facility is tailored to Islamic finance: it avoids interest (riba) by using profit-sharing mechanics and collateral, as verified by Shariah advisers. This aligns with Middle Eastern norms and allows major international banks to participate.
Tamara will use the funds to diversify and scale its product offerings. Management says the new capital “will support credit product expansion, payment innovation, and regional growth”[45]. Specifically, Tamara plans to launch new lending products (such as credit cards or financing for services) and enhance its AI-driven underwriting to reduce defaults. The facility roughly triples Tamara’s lending capacity, enabling it to finance far more purchases. It is the largest asset-backed fintech financing ever done in the Middle East[46]. Besides TAM financing, it signals confidence in Tamara’s platform as it pursues new markets (likely beyond current UAE and Kuwait operations). Analysts note global banks’ involvement (Goldman, Citi) as a sign that international capital sees growth in Islamic fintech.
Responses and Industry Reaction
Tamara’s CEO Abdulmajeed Alsukhan hailed the deal as a “landmark facility” that accelerates growth[45]. Goldman Sachs and Citi spokesmen expressed confidence in Tamara’s business model and the Middle East fintech opportunity. Observers pointed out that Tamara’s rivals (such as UAE’s Tabby) will now face even tougher competition for customers[43]. In the region’s fintech ecosystem, this deal is seen as validating. Media noted it was announced at Money20/20 Riyadh, underscoring Saudi’s commitment to a fintech-friendly environment (including the Financial Sector Development Program goals).
Financial analysts linked the deal to Saudi regulatory strategy. They note that the facility’s structure aligns with the Kingdom’s Vision 2030 (which emphasizes Islamic finance and support for SMEs)[47]. Tamara’s success is viewed as a sign that Saudi’s startup economy is maturing: one commentator wrote that the country is now “a hub for inward fintech investment”[48]. There has been little public criticism most industry commentary praised the arrangement’s scale and Shariah compliance. A few observers cautioned that Tamara must manage credit risk prudently (BNPL in other markets has seen rising defaults), but overall the reaction was optimistic. In short, stakeholders see this funding as a major vote of confidence in Saudi’s digital economy.
Expansion Plans and Market Outlook
With approvals secured for the initial draw, Tamara can deploy the $1.4B immediately and plan the rest over 20262028. The company says it will use the extra $1B after meeting performance milestones. New products (e.g. a Tamara-branded credit card) are expected by late 2025. The funding also supports Tamara’s geographic rollout: executives have indicated plans to enter more Gulf and regional markets (possibly Pakistan or Egypt) by mid-2026.
Quarterly updates will track Tamara’s key metrics (user growth, GMV, default rates). Regulators will monitor compliance with SAMA’s fintech rules and Shariah guidelines. If growth continues, analysts predict Tamara’s transaction volume could increase 30% annually. This deal may set a precedent: more Middle Eastern fintechs could use Shariah-compliant securitizations to raise capital. For the retail sector, it means more consumers will have access to interest-free credit at checkout. Businesses (especially e-commerce merchants) should prepare for BNPL becoming a mainstream payment option.
Overall, the Tamara $2.4B financing is a watershed for Islamic digital finance in the Middle East. It shows global investors betting big on region-specific fintech, and it lays the foundation for accelerated BNPL adoption under ethical finance norms[47]. Over the next year, watch for Tamara’s expanded partnerships and product launches, which will further integrate BNPL into the Gulf’s economy.
Disclaimer
This analysis is for informational purposes only and is not financial advice. The numbers and scenarios are based on publicly available data and estimations; outcomes may differ materially based on regulatory decisions, market behavior, or other developments, which could extend beyond 2025. Always consult a qualified financial advisor before making investment decisions.
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