GCC Buy Now Pay Later Market Overview

Market Size in 2025: USD 225.2 Million

Market Size in 2034: USD 1,278.6 Million

Market Growth Rate 2026-2034: 21.28%

According to IMARC Group's latest research publication, "GCC Buy Now Pay Later Market Report by Channel (Online, Point of Sale (POS)), Organization Size (Large Enterprises, Small and Medium Enterprises), End Use (Consumer Electronics, Fashion and Garment, Healthcare, Leisure and Entertainment, Retail, and Others), Purchase (Small Ticket Items (Up to US$ 300), Mid Ticket Items (US$ 300 - US$ 1000), Higher Prime Items (Above US$ 1000)), and Country 2026-2034", The GCC buy now pay later market size reached USD 225.2 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 1,278.6 Million by 2034, exhibiting a growth rate (CAGR) of 21.28% during 2026-2034.

How AI is Reshaping the Future of GCC Buy Now Pay Later Market

  • AI-driven credit underwriting enables real-time risk assessments using alternative data, boosting approval rates and reducing defaults for BNPL providers like Tabby and Tamara in high-growth markets such as Saudi Arabia and the UAE.
  • Machine learning powers personalized repayment plans and predictive analytics, enhancing customer experiences by offering tailored installments and proactive fraud detection across multilingual GCC platforms.
  • AI integration in embedded finance allows seamless BNPL options at checkout on e-commerce sites, increasing conversion rates and merchant adoption while supporting scalable operations in the region's booming digital economy.
  • Advanced AI models improve credit scoring for underbanked populations, promoting financial inclusion and expanding access to interest-free installments aligned with Islamic finance preferences.
  • AI enhances operational efficiency through automated compliance monitoring and dynamic pricing, helping providers navigate evolving regulations and sustain rapid growth in competitive GCC fintech landscapes.

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How Vision 2030 is Revolutionizing GCC Buy Now Pay Later Industry

Saudi Arabia's Vision 2030, alongside complementary digital initiatives in the UAE and other GCC countries, is propelling the Buy Now Pay Later sector by accelerating fintech adoption and economic diversification beyond oil dependency. The program prioritizes non-cash transactions, digital infrastructure, and financial inclusion, creating an ideal environment for BNPL growth through supportive regulations from bodies like SAMA that ensure consumer protection while fostering innovation. Vision 2030 drives e-commerce expansion, high smartphone penetration, and a young, tech-savvy population eager for flexible, interest-free payment solutions, often Sharia-compliant. Major players like Tamara and Tabby have achieved unicorn status, benefiting from government-backed cashless economy goals and partnerships with retailers. These efforts enhance merchant ecosystems, boost consumer spending on essentials and luxuries, and position the GCC as a fintech hub with embedded finance integrations. Overall, Vision 2030 fuels sustained double-digit growth in BNPL by promoting transparent lending, digital transformation, and inclusive financial services that align with broader ambitions for a vibrant, knowledge-based economy.

GCC Buy Now Pay Later Market Trends & Drivers

The GCC BNPL market shows dynamic expansion in 2026, characterized by surging adoption among young consumers and integration with major e-commerce platforms. Key trends include dominance of Islamic-compliant models using Murabaha structures, rapid growth in Saudi Arabia and the UAE, and expansion into sectors like healthcare, travel, and education. Digital wallets and mobile-first solutions prevail, with over one in five consumers using BNPL, driven by e-commerce boom and partnerships with retailers like Noon and Amazon MENA. Sharia-aligned options gain preference, while embedded finance and cross-border capabilities enhance accessibility across the region.

Primary drivers include high smartphone and internet penetration, rising demand for flexible interest-free payments amid low traditional credit card usage, and supportive government policies promoting digital payments under diversification strategies. E-commerce surge, youthful demographics seeking convenience, and regulatory frameworks ensuring responsible lending accelerate adoption. These factors, combined with fintech innovation and merchant acceptance, fuel robust growth and position BNPL as a cornerstone of the GCC's evolving financial landscape.

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GCC Buy Now Pay Later Industry Segmentation:

The report has segmented the market into the following categories:

Channel Insights:

  • Online
  • Point of Sale (POS)

Organization Size Insights:

  • Large Enterprises
  • Small and Medium Enterprises

End Use Insights:

  • Consumer Electronics
  • Fashion and Garment
  • Healthcare
  • Leisure and Entertainment
  • Retail
  • Others

Purchase Insights:

  • Small Ticket Items (Up to US$ 300)
  • Mid Ticket Items (US$ 300 - US$ 1000)
  • Higher Prime Items (Above US$ 1000)

Country Insights:

  • Saudi Arabia
  • UAE
  • Qatar
  • Bahrain
  • Kuwait
  • Oman

Competitive Landscape:

The competitive landscape of the industry has also been examined, along with the profiles of the key players.

Recent News and Developments in GCC Buy Now Pay Later Market

  • January 2025: Saudi Central Bank (SAMA) reaffirmed licensing and compliance requirements for BNPL providers, covering consumer protection, credit assessment, and reporting standards.

  • March 2025: Tabby publicly announced the expansion of regulated BNPL services in Saudi Arabia, following formal authorization under SAMA’s finance regulations.

  • June 2025: UAE Central Bank confirmed continued oversight and supervision of BNPL activity under retail finance and stored-value facilities frameworks, impacting BNPL operators and merchant partners.

  • September 2025: Tamara disclosed merchant network expansion agreements across GCC retail and e-commerce platforms, following regulatory clearances in key markets.

  • December 2025: GCC regulators reiterated cross-market alignment on consumer credit disclosures, reinforcing standardized BNPL terms across Saudi Arabia, the UAE, and Bahrain through official regulatory communications.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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