Tamara Finance approved for credit services, raising Saudi lending companies to 65
Updated 04 March 2025
Mohammed Al-Kinani
JEDDAH: Saudi Arabia’s Tamara Finance Co. has received approval to provide credit services, increasing the total number of licensed lending companies in the Kingdom to 65.
Saudi Central Bank, or SAMA, announced it has granted the company approval to offer consumer finance and buy now, pay later services, emphasizing that this move reflects the bank’s commitment to supporting the growth of the finance sector.
It will also improve the efficiency of financial transactions, and advance innovative solutions that promote financial inclusion across Saudi Arabia, according to a statement.
The approval aligns with Saudi Arabia’s Vision 2030 objectives to strengthen the digital economy, expand financial inclusion as outlined in the country’s Financial Sector Development Program, and increase the share of cashless transactions to 70 percent by 2025, up from 36 percent in 2019.
Tamara became the first Saudi fintech startup to reach a $1 billion valuation after raising $340 million in its series C funding round in December 2023.
The firm’s growth comes as BNPL offerings are being increasingly used throughout the Kingdom.
A 2024 report from leading provider Tabby reveals that 77 percent of Saudi consumers now use such services for essential purchases.
Tabby’s data indicates that first-time BNPL transactions are twice as likely to be for essential items, such as education and medical expenses, rather than discretionary purchases.
This highlights that a significant portion of use of this service is directed toward essential needs rather than non-essential wants.
Additionally, the report shows that the average value of essential purchases made through BNPL is higher than that of discretionary spending.
This suggests that while consumers are prioritizing their needs, this financial service provides an accessible and affordable way to acquire high-value necessities, including insurance and home goods.
Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn
Updated 6 sec ago
Dayan Abou Tine
RIYADH: Saudi Arabia’s e-commerce sales using Mada cards increased by 57 percent in April compared to the same month last year, hitting SR23.27 billion ($6.2 billion).
Data by the Saudi Central Bank, also known as SAMA, shows online transactions through Mada exceeded 132 million for the month, up 40.75 percent year on year, reflecting a substantial increase in consumers shopping via websites and mobile apps.
These figures include purchases made online using linked debit cards and e-wallets, but they do not account for credit card transactions processed through international networks such as Visa or Mastercard.
Mada, formerly known as Saudi Payment Network, is the Kingdom’s national electronic payment system, connecting all ATMs and point-of-sale terminals to a central payments switch.
It enables debit and prepaid card services for millions of Saudis, allowing them to pay both in stores and online using funds directly from bank accounts. Importantly, Mada transactions utilize near-field communication technology for secure, contactless payments, meaning shoppers can simply tap their card or smartphone at terminals for instant checkout.
This system has become a cornerstone of Saudi Arabia’s push toward a cashless economy, ensuring fast and secure transactions at physical retail locations and on e-commerce platforms. The accelerating uptake of Mada-enabled digital payments highlights growing consumer trust in online shopping and the success of national efforts to modernize the payments ecosystem.
In-store sales plateau as online spending soars
Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. The total value of POS purchases at physical retail outlets slipped to SR52.22 billion, marking a 1.38 percent decline year on year according to SAMA data.
This slight drop in sales comes even as the number of POS transactions climbed by around 11.6 percent to 891.5 million over the same period. In other words, Saudi consumers made significantly more card payments in person than a year ago, but were spending slightly less per transaction on average.
SAMA’s figures indicate over 2 million POS terminals are now deployed nationwide to facilitate card payments — a network 16.37 percent larger than a year ago, reflecting the Kingdom’s drive to expand electronic payment acceptance among businesses large and small.
This divergence — higher transaction counts but lower total POS value — suggests a behavioral shift as digital payments become frequent for everyday purchases. With contactless “tap-and-go” cards and mobile wallets now the norm, consumers are using cards for smaller, frequent buys like groceries or coffee.
This has driven up transaction volumes while curbing the average ticket size of each sale. Indeed, nearly all card swipes are now contactless; about 94 percent of in-store card transactions in Saudi Arabia are made via NFC, whether through a physical card, smartphone, or smartwatch, according to SAMA.
The convenience of tap-to-pay has encouraged people to rely less on cash even for low-value items, contributing to the surge in POS transaction counts.
Another factor influencing the year-on-year comparison is the timing of Ramadan and Eid shopping. In 2024, the holy month of Ramadan and the Eid Al-Fitr festival fell largely in April, boosting retail spending in that period.
In contrast, Ramadan in 2025 fell mainly in March, pushing POS sales to about SR66 billion that month. As a result, April 2025 didn’t see the same holiday-related boost, which likely played a role in the softer in-store sales figures, even though the overall trend in electronic transactions continues to grow.
Categories like food & beverages and dining — which according to SAMA data were the top two POS spending sectors in April at around SR7.7 billion each — continue to dominate physical sale, but their growth may have been tempered without the late-Ramadan rush present a year ago.
Fintech innovation
The growth is also being fueled by new services and partnerships. In April, SAMA signed an agreement with Google to launch Google Pay in Saudi Arabia using Mada’s payment infrastructure.
Expected to roll out later in 2025, this integration will allow users to add their Mada-linked debit cards to Google Wallet for seamless tap-to-phone payments and online purchases, further expanding the mobile payment options available to consumers.
This follows earlier introductions of Apple Pay and local mobile wallets, meaning Saudi shoppers will soon have a full suite of global and domestic smartphone payment apps at their disposal.
Such developments not only offer greater convenience but also help normalize cashless spending across all demographics — including younger, tech-savvy consumers who favor using their phones and wearables to pay.
Egypt seeking FDI boost with tourism sector investment opportunities
Tourism minister announced formation of unit to monitor investment prospects
He presented targeted investments in antiquities preservation and restoration
Updated 33 min 9 sec ago
Reem Walid
RIYADH: Egypt is intensifying efforts to attract foreign direct investment by opening new opportunities in its tourism and archaeological sectors, Prime Minister Mostafa Madbouly said during a high-level strategy meeting.
The gathering, which took place at the government headquarters in the New Administrative Capital, aimed at following up on the efforts of the Ministries of Tourism and Investment, according to a statement published on the Cabinet’s official Facebook page.
This aligns with Egypt’s goal of attracting 30 million tourists annually by 2028, aiming for a 25 percent to 30 percent year-over-year increase in inbound tourism as part of the nation’s Vision 2030 for sustainable development.
“The government is working to formulate clear plans with specific targets to offer investment opportunities in various sectors, contributing to increasing foreign direct investment,” Madbouly said during the meeting.
Egyptian Prime Minister Mostafa Madbouly held a high-level strategy meeting at the government headquarters in the New Administrative Capital. Facebook/Presidency of the Egyptian Council of Ministers
During the assembly, Minister of Tourism Sherif Fathy announced the formation of a dedicated unit to monitor investment prospects. The initiative aims to establish an “investment opportunities bank” that will showcase available projects in the tourism sector, supporting the country’s efforts to meet its growth targets.
The statement said: “In a related context, the Minister explained that 2024 witnessed an increase in hotel capacity of 7,200 additional rooms — 55 percent of which are new capacity, and during the current year 2025, it is expected to add approximately 19,000 new hotel rooms — new projects, expansions of existing projects, and initiatives.”
During the gathering, Fathy also presented the targeted investments in the field of antiquities preservation and restoration, noting that the Supreme Council of Antiquities has implemented an average of 36 projects annually over the past five years.
The minister then outlined the targeted investment distribution for the tourism and antiquities sectors from 2025 to 2031 across various governorates.
The plan includes developing hotel rooms, restaurants, safaris, camps, and amusement parks. It also focuses on investing in the rehabilitation and utilization of archaeological sites, establishing museums in partnership with the private sector, and enhancing services at heritage locations.
During the meeting, Investment and Foreign Trade Minister Hassan El-Khatib noted that the implementation timeline includes holding bilateral coordination meetings between the his department and the relevant ministries to present the strengths of each sector, available investment opportunities, proposed projects, and the challenges facing attracting investment.
He also stated that each ministry will conduct a comprehensive sectoral study, form joint working groups between the Ministry of Investment and Foreign Trade and each relevant ministry, and submit periodic reports to the Cabinet to monitor progress in implementing the sectoral investment strategy and achievement rates.
KARACHI: Analysts, investors and key business chambers on Wednesday broadly welcomed Pakistan’s federal budget for 2025-26 as a “balanced” attempt at fiscal consolidation and economic stimulus, though they raised concerns about the achievability of the government’s ambitious growth target of 4.2 percent and heavy reliance on existing taxpayers.
Presenting the federal budget on Tuesday, the government announced a range of tax reforms, spending priorities, and incentives aimed at maintaining its ongoing $7 billion International Monetary Fund (IMF) loan program while also trying to revive investor sentiment and ease pressure on the salaried class.
“The budget announced by the government yesterday [Tuesday] was pretty much in line with what we were expecting, a balanced budget,” said Sana Tawfik, head of research at Arif Habib Ltd, a major Pakistani financial services company.
“The government tried to ensure that the reforms being undertaken currently are on track and Pakistan continues with the fiscal consolidation phase.”
Tawfik was pointing to several key ongoing fiscal and structural reforms that align with Pakistan’s commitments under the IMF program and broader efforts to stabilize the economy.
These include fiscal consolidation through broadening the tax base, rationalizing subsidies, and phasing out tax exemptions; revenue mobilization though increased taxation on interest income, a phased reduction in the super tax and the removal of certain tax exemptions to improve revenue collection; and debt rationalization by managing debt servicing costs, likely by shifting to more concessional financing and restructuring high-cost debt.
While presenting the budget, the government also maintained it would continue its focus on providing relief to the salaried class and try to strike a balance between austerity with social protections.
This handout photograph taken on June 10, 2025, and released by Pakistan's National Assembly shows Finance Minister Muhammad Aurangzeb presenting the 2025–26 fiscal budget at the Parliament House in Islamabad. (AFP)
Tawfik agreed that the government had attempted to strike such a balance between providing relief and raising revenue, citing relief measures for the salaried class in the budget and the phased reduction in super tax.
“The government tried to make sure that we continue with the reforms that we have undertaken in the recent past, while ensuring that we meet the targets set for the upcoming fiscal year,” Tawfik said.
UNREALISTIC GROWTH TARGET?
However, Tawfik was skeptical of the government’s 4.2 percent GDP growth target, calling it “unrealistic” in the current economic context.
“Agriculture has been underperforming, and industries have not been performing due to the high cost of doing business. While we have seen interest rates coming down, agriculture would be the key sector to look forward to,” she said.
Arif Habib Ltd. has forecast GDP growth of around 3.6 percent for FY26, below the government’s target.
Tawfik also noted that while the government had projected inflation at 7.5 percent, her team expected it to be slightly lower, around 6 percent to 6.5 percent, although risks remained from global commodity prices, exchange rate pressures and the fading base effect.
She also flagged a projected current account deficit for FY26, in contrast to a surplus of $1.5 billion expected this fiscal year, citing pent-up demand and increased imports.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., echoed the sentiment that the budget was more “measured” compared to previous years.
“In the last two years, we’ve seen very strict budgets. This time, the government has been a little lenient. We’ve seen reform measures but also some relaxations,” Ghani said.
He pointed to tax relief for the salaried class and incentives for the construction sector, though he noted that the Public Sector Development Programme (PSDP) allocation had decreased.
Corporate employees watching television screens as Pakistan Finance Minister Muhammad Aurangzeb presents Pakistan’s $62 billion federal budget for fiscal year 2025–26, in Islamabad on June 10, 2025. (APP)
“There are many allied industries that benefit when we see measures taken for construction,” he said, while noting a less favorable outcome for the auto sector.
Ghani acknowledged the government’s target of a 2.4 percent primary surplus as “optimistic,” but achievable, and described the overall budget as “laying the groundwork” for sustained economic growth.
On the 4.2 percent GDP target, he noted:
“It’s an optimistic target… but with interest rates coming down, we hopefully will see contribution from [agriculture and industrial] segments, and we can get closer to the target.”
STRONG SUPPORT FROM EQUITY MARKETS
While the budget drew applause for investor-friendly policies and efforts toward macroeconomic stability, analysts cautioned that delivery on ambitious fiscal and growth targets remained key to sustaining momentum.
The stock market, however, responded positively from the opening bell.
“As soon as the market started today [Wednesday], it rallied close to 1,400 points,” Ghani said.
“We are in an IMF program and we’re seeing a decent budget this time. All of these things point to the fact that the market is going to reach new heights in the coming months.”
Indeed, despite macroeconomic challenges, the budget drew strong support from equity markets.
“Measures we have seen so far are broadly positive for the stock market,” said Tawfik. “The government kept capital gains tax and dividend income tax unchanged, which the market had feared would be increased.”
Sector-specific measures were seen as favorable for cement, steel, and textile sectors, particularly with subsidies for low-cost housing and removal of sales tax exemptions for certain regions, which levels the playing field for local manufacturers.
“Intraday today, market has gone north of 124,000 points, and we have seen an intraday surge of 2,000 points,” Tawfik said.
DIVIDED BUSINESS COMMUNITY
The reaction from Pakistan’s business chambers, however, was more mixed.
Both the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and the Karachi Chamber of Commerce and Industry (KCCI), warned that unless structural reforms were implemented and energy costs reduced, the budget may not succeed in spurring industrialization or export growth.
The FPCCI welcomed certain relief measures, particularly for the salaried class and property sector, but flagged concerns about revenue expectations.
“We welcome steps to end harassment of taxpayers,” said Atif Ikram Sheikh, President FPCCI, noting the simplified tax return form as a positive step.
However, he added: “The increase in tax collection target by Rs2,500 billion ($8.8 billion) is unrealistic.”
The FPCCI also expressed disappointment over the absence of support packages for key sectors such as IT, minerals, fishing, and e-commerce.
People walk past the Karachi Chamber of Commerce & Industry building in Karachi on May 4, 2024. (AN Photo/File)
The KCCI, by contrast, issued a harsh critique of the budget, calling it disconnected from ground realities.
“This is a camouflage budget,” said Zubair Motiwala, Chairman of the Businessmen Group (BMG) at KCCI. “There is no meaningful relief for the business community or the common man. Instead of reforms to expand the tax base, the government is squeezing existing taxpayers.”
KCCI President Muhammad Jawed Bilwani added:
“Electricity bills are unaffordable, interest rates are high, and there’s no relief for the industrial sector. Without addressing the cost of doing business, you cannot expect growth or job creation.”
KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday underscored the significance of sweeping tariff reforms built into the federal budget, calling them a structural economic shift aimed at making exports more competitive and lowering the cost of importing raw materials to support export-led growth.
The minister highlighted the development during a post-budget press conference after presenting the finance bill in the National Assembly a day earlier. The proposed federal budget for FY2025-26 includes a total outlay of Rs17.57 trillion ($62 billion), while promising a 4.2% growth target and a reduction in the fiscal deficit to 3.9% of GDP.
Aurangzeb told journalists in Islamabad the government had removed additional customs duties on 4,000 out of 7,000 total tariff lines and reduced base customs duties on 2,700 tariff lines. Of these, 2,000 tariff lines are directly linked to raw materials and intermediate goods used by exporters.
“This is a big reform that has not been done over the last 30 years,” he said, adding the objective was to lower production costs for exporters and enable them to better compete in international markets.
“We are going to fundamentally change the DNA of the economy so that when we go toward growth, we don’t get into a dollar situation, we don’t get into a balance of payments problem,” he said. “We can continue to grow at a certain pace, which is export-led.”
Defending the reforms against criticism that they may lower revenue, the minister argued the long-term gains for the export sector outweigh short-term fiscal concerns.
“If we want an export-led economy, these are the steps we must take,” he added.
Aurangzeb also emphasized new legislation and enforcement tools, saying they were going to be key in plugging leaks and ensuring compliance.
“We have laws and taxes,” he said, “but without enforcement, they don’t work — and that’s what we’re focused on this year.”
Egypt allocates Red Sea land for issuing bonds and lowering debt
174 square km plot allocated on Red Sea coast to finance ministry
Updated 11 June 2025
Reuters
CAIRO: Egypt has allocated a 174 square km plot on the Red Sea coast to the finance ministry for use in Islamic bond issuances and in efforts to lower the country’s public debt, the official gazette said on Tuesday.
The gazette did not elaborate on how the land would be used, but Egypt, which has been mired in a slow-burning economic crisis, signed a $35 billion deal with the UAE early last year to develop a 170-square-km tract along the Mediterranean coast.
Since then, Egypt has been seeking similar large-scale investments as it tries to overcome the economic crisis.
It has been in talks with Saudi Arabia, Qatar, and Kuwait in a bid to attract major investments, according to investment bankers and news reports.
In tandem, Egypt also plans to issue $2 billion in sukuks, or Islamic bonds, in 2025, Finance Minister Ahmed Kouchouk told Reuters in April.
