GCC Buy Now Pay Later Market Size to Hit USD 1,278.6 Million by 2034 | With a 21.28% CAGR

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

A strong factor contributing to the emergence of BNPL in Saudi Arabia is the Vision 2030 strategy which, along with concurrent digitization initiatives in the UAE and other GCC countries, is trying to diversify the economy away from oil and to promote cashless transactions, build digital infrastructure and financial inclusion. Other supportive regulations include the fintech regulations from SAMA, which encourage creativity while ensuring consumer protection and trust in fintech. E-commerce growth and a young, tech-savvy population accustomed to the high smartphone penetration rate create demand for interest-free payment solutions. Unicorns Tamara and Tabby dominate the market, encouraged by government policies to promote a cashless economy and alliances with retailers. Most BNPL solutions are Sharia-compliant. By improving merchant ecosystems, growing consumer spend of essentials and discretionary goods, enabling the GCC region to be a fintech hub with embedded finance, and improving lending transparency, Vision 2030 has driven strong, sustainable, double-digit growth rates in the BNPL sector while promoting digital transformation and enabling lending access for all of the Kingdom's population in line with Vision 2030's objectives for building a diverse, knowledge economy.

GCC Buy Now Pay Later Market Trends & Drivers

The GCC BNPL market is expected to grow considerably in 2026 driven by millennials and Gen Z adoption, partnerships with large e-commerce platforms, as well as the growing preference for Islamic compliant BNPL models such as Murabaha. The Saudi Arabian and UAE BNPL markets are set to see rapid growth. Other sectors ripe for growth include healthcare, travel, and education. Digital wallets and mobile-first experiences are expected to dominate; over 1 in 5 consumers utilize BNPL solutions. The boom in ecommerce, partners in the region such as Noon and Amazon MENA, Sharia-compliant products, embedded finance and cross-border payments drive adoption in the region.

Reasons for these developments include high smartphone and internet penetration, increasing demand for flexible interest-free payment options, low credit card penetration, government policies promoting digital payments, and diversification, high e-commerce growth rate, a young consumer base, and credit regulations enforcing responsible lending practices. Taken together, these factors, along with the growth in fintech and merchant acceptance, position BNPL as a key component of the GCC's financial ecosystem.

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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.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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