Discover top fintech news and events!
Subscribe to FinTech Weekly's newsletter
Read by executives at JP Morgan, Coinbase, Blackrock, Klarna and more
Tamara Announces Landmark Financing
Saudi Arabian start-up Tamara has secured a financing package worth up to $2.4 billion from a group of major global backers, including Goldman Sachs, Citi, and Apollo funds. The facility, one of the largest of its kind for a Gulf fintech, is expected to expand the company’s capacity to provide credit and payment services across the region.
The Shariah-compliant structure refinances and increases a previous $500 million facility. According to the company, the new deal includes an initial $1.4 billion, with an additional $1 billion available over a three-year period pending further approvals.
Tamara said the funding would increase its lending power and enable growth beyond its current base of 20 million customers.
A Leading Buy-Now-Pay-Later Provider
Founded in 2020, Tamara has quickly become one of the Gulf’s leading providers of buy-now-pay-later (BNPL) services. Its platform allows consumers to spread the cost of larger purchases over installments, a model that gained widespread popularity during the COVID-19 pandemic.
While BNPL services can provide convenience and flexibility for customers, they have also drawn scrutiny for their fee structures, particularly late charges. Tamara has emphasized compliance with Shariah finance principles, distinguishing its offerings in a competitive market where regional rivals include fintech firm Tabby.
Shariah Compliance and Its Significance
The fact that the financing package is Shariah-compliant is central to Tamara’s positioning. Shariah-compliant finance prohibits interest (riba) and speculative activities (gharar), requiring financial transactions to be backed by tangible assets and structured to share risk fairly between parties.
In practice, this means Tamara’s asset-backed facility is structured to align with Islamic finance rules, ensuring that lending and repayment terms avoid conventional interest-bearing mechanisms. For customers, this provides confidence that the services respect religious principles while offering modern digital financial solutions.
Shariah compliance has become a major growth driver for fintech in the Middle East. By integrating Islamic finance principles with technology, platforms like Tamara can appeal to both religiously observant consumers and investors seeking ethical alternatives.
Building on a $1 Billion Valuation
Tamara’s latest financing builds on its rapid rise. In late 2023, the company achieved unicorn status with a valuation of $1 billion following a $340 million Series C funding round. That round included participation from SNB Capital and Sanabil Investments, a subsidiary of Saudi Arabia’s Public Investment Fund.
The new $2.4 billion facility dwarfs earlier fundraises, reflecting both investor confidence and the company’s growing role in shaping digital payments across the Gulf.
Expanding Capacity and Reach
The infusion of capital is expected to support the expansion of Tamara’s BNPL and credit offerings, broadening access to customers and merchants alike. By leveraging its asset-backed facility, the company can increase the volume of lending it provides, meeting the rising demand for flexible payment solutions in the Gulf and beyond.
With more than 20 million customers already using its platform, Tamara is positioned to scale further as it strengthens relationships with merchants and explores new product lines.
Competitive Sector Dynamics
The BNPL market in the Gulf remains highly competitive. Rival platforms such as Tabby are also expanding rapidly, reflecting strong consumer demand for installment-based services. For Tamara, the Shariah-compliant structure of its financing and services may serve as a differentiator in a crowded field, allowing it to attract both customers and investors who prioritize ethical financial models.
A Signal for Regional FinTech Growth
Tamara’s latest deal is not only a milestone for the company but also a sign of how global financial institutions are deepening their involvement in Middle Eastern fintech. By structuring a package that respects Islamic finance principles, backers like Goldman Sachs, Citi, and Apollo highlight the growing convergence between international capital markets and regional financial practices.
The $2.4 billion package underscores the strategic importance of fintech in supporting consumer spending, financial inclusion, and economic diversification goals across the Gulf. As Shariah-compliant digital finance continues to evolve, Tamara’s trajectory will be closely watched by both competitors and policymakers.
