Saudi Arabia’s first homegrown fintech unicorn, Tamara has received a restricted finance licence from the UAE’s Central Bank to operate in the country.
Backed by PIF’s Sanabil Investments, Tamara serves over 20 million customers and partners with major brands, including Apple, SHEIN, IKEA, and Amazon.
The approval also follows its $2.4 billion Shari’ah-compliant funding to grow credit and payment services across the Gulf.
Receiving Restricted Finance License
Tamara, the first homegrown fintech unicorn from Saudi Arabia, has recently achieved a significant milestone by securing a restricted finance license from the UAE Central Bank.
This pivotal approval not only marks a new chapter for the company but also aligns with the broader economic diversification goals set forth by the UAE Vision 2031.
[Image Credit: Tamara]
As Tamara embarks on this journey, it aims to enhance its offerings and expand its footprint in the Gulf region, particularly in the UAE.
Tamara’s Restricted Finance License
The restricted finance license granted to Tamara is a crucial step in its strategic expansion plans. This license allows the fintech company to operate within the UAE’s financial ecosystem, enabling it to provide a range of financial services tailored to meet the needs of both consumers and merchants.
Enhancing Financial Services
With this regulatory approval, Tamara is poised to introduce innovative financial products that will empower users to manage their finances more effectively. The company plans to focus on:
- Credit Solutions: Expanding its credit offerings to provide more flexible financing options for customers.
- Payment Services: Enhancing payment solutions that cater to the diverse needs of merchants and consumers alike.
Recent Funding by Tamara
In a remarkable move, Tamara also secured a Shari’ah-compliant, asset-backed facility worth up to $2.4 billion from prominent financial institutions, including Goldman Sachs, Citi, and Apollo funds.
This funding is one of the largest of its kind in the region and is intended to support the company’s expansion of credit and payment services.
Impact of Tamara Funding
The substantial funding will enable Tamara to:
- Accelerate Growth: Fast-track the development of new financial products and services.
- Enhance Infrastructure: Invest in technology and infrastructure to support a growing customer base.
- Expand Market Reach: Increase its presence in the Gulf region, particularly in the UAE.
Tamara plans to utilize the funds strategically to ensure sustainable growth. This includes investing in technology that enhances user experience and developing partnerships that expand its service offerings.
Tamara’s Expansion into Travel
Tamara’s innovative approach extends beyond traditional retail. The company recently announced a partnership with Saudia, the national carrier, to offer flexible installment plans for flight bookings. This initiative marks a significant expansion of its buy-now-pay-later (BNPL) model into the travel sector.
Benefits for Consumers
This partnership allows consumers to book flights and pay in installments, making travel more accessible. The flexibility offered by Tamara’s payment solutions is expected to attract a broader audience, enhancing customer satisfaction.
Strengthening Brand Partnerships
By collaborating with major brands like Saudia, Tamara is positioning itself as a versatile financial partner. This strategy not only boosts brand visibility but also reinforces customer trust in its services.
Growing Customers of Tamara
Tamara currently serves over 20 million customers and collaborates with major global and regional brands, including Apple, SHEIN, IKEA, and Amazon. This extensive network not only enhances the company’s credibility but also provides a solid foundation for future growth.
Understanding Customer Needs
To maintain its competitive edge, Tamara continuously seeks to understand the evolving needs of its customers. This involves:
- Market Research: Conducting thorough research to identify trends and preferences.
- Feedback Mechanisms: Implementing systems to gather customer feedback and improve services accordingly.
By focusing on customer insights, Tamara can develop tailored financial solutions that resonate with its user base. This customer-centric approach is essential for fostering loyalty and driving growth
Growing Regional Presence
As Saudi Arabia and the UAE continue to push for economic diversification, Tamara aims to strengthen its regional presence. This involves exploring opportunities in neighboring markets and adapting its services to meet local needs.
Reshaping Financial Landscape
Tamara’s recent achievements signify a new era for the fintech company as it embarks on an ambitious journey in the UAE. With the support of the UAE Central Bank and significant funding, Tamara is well-positioned to redefine the financial landscape in the region.
More Developments in Saudi Fintech Landscape
QNB Group License Approval
QNB Group has received license approval from the Saudi Central Bank to launch ezbank, a $666 million digital first bank in partnership with Ajlan & Bros Holding.
Ezbank is designed for youth and entrepreneurs and will offer secure and inclusive financial services through mobile first and AI driven platforms.
It aims to support QNB’s global digital transformation strategy and Saudi Arabia’s digital economic goals.
Google Pay Launch in Saudi Arabia
Google Pay has launched in Saudi Arabia through the national payment system, MADA.
Announced at the Money20/20 Middle East Conference in Riyadh, users can now add and manage MADA and digital credit cards to Google Wallet.
This launch aligns with Saudi Vision 2030 to boost digital payments, reduce cash reliance, and position Saudi Arabia as a leader in the FinTech space.
Samsung Pay Launch in Saudi Arabia
Samsung Pay will be officially launching later this year in Saudi Arabia after the company signed a deal with the Saudi Central Bank.
The agreement was announced at the 24 Fintech conference in Riyadh. Samsung Pay will offer secure and digital payment options to consumers in Saudi Arabia and hopes to rival Apple Pay.
This move aligns with Saudi Vision 2030 to enhance digital payment through the national “mada” system and position Saudi Arabia as a leader in the FinTech space.
Riyadh Air Partnership with Noon Payments
Riyadh Air, scheduled to begin operations in 2025 InShaAllah, has teamed up with Noon Payments, owned by PIF, to improve digital payment services for travelers, ensuring a secure and smooth journey.
This collaboration is focused on delivering top-notch passenger experiences through card acceptance and alternative payment methods, supporting Saudi Arabia’s Vision 2030 objectives.
Barq’s IPO Listing
A new fintech startup in Saudi Arabia named Barq, headed by former STC Pay CEO Ahmed Alenazi, has been officially introduced.
Barq is a financial app that enables global money transfers to more than 200 countries. It offers both virtual and physical Visa cards with no annual or international fees.
The app also grants access to 25 airport lounges worldwide and provides discounts on hotels and resorts.
Within just three weeks, Barq has transferred $133 million and attracted over 1 million users after obtaining an e-wallet license from the Saudi Central Bank in January 2024.
Tamara’s Unicorn Valuation
Tamara, a fintech firm based in Saudi Arabia, has achieved unicorn status, becoming the first start-up company in the Kingdom to be valued at $1 billion.
Tamara is a Shariah-compliant company that serves over 10 million people in the GCC with its buy now pay later offers. The business intends to grow into banking and retail payment services.
Tabby’s Unicorn Valuation
Tabby, a buy now, pay later platform, has achieved unicorn status with a valuation of $1.5 billion, placing it among the top billion-dollar startups in the Middle East and North Africa.
The company has announced its intention to relocate its headquarters to Riyadh and plans to go public on the Saudi Tadawul stock exchange.
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