Saudi Arabia is advancing a strategic partnership between its social protection administrator and a leading fintech to broaden access to credit for pensioners and other beneficiaries. The memorandum of understanding between the General Organization for Social Insurance (GOSI) and Riyadh-based financial services app Tabby aims to design and deliver Shariah-compliant credit products that respond to the needs of groups that have traditionally faced limited borrowing options. This collaboration is framed as a concrete step within GOSI’s Taqdeer programme, which seeks to promote financial inclusion and accelerate the adoption of digital financial services in line with the country’s broader economic transformation agenda. The partnership signals a deliberate move toward more inclusive and responsible financial solutions that extend beyond pension administration into everyday financial resilience for beneficiaries.
Overview of the MoU and the partnership
The MoU establishes a formal basis for cooperation between GOSI and Tabby to co-create and implement credit solutions that adhere to Shariah principles while meeting consumer protection standards. The two organizations commit to working together to assess the credit needs of pensioners and other beneficiaries who are underserved by traditional lenders, with a focus on transparent terms, accessible processes, and responsible lending practices. At its core, the partnership envisions a model where pensioners and other beneficiaries can access flexible credit arrangements that fit their financial realities, enabling them to manage essential purchases or expenses without compromising long-term financial stability. The collaboration is designed to be iterative, allowing products to be refined through ongoing feedback, data-driven insights, and compliance with established safeguards.
The agreement emphasizes that any products developed under the partnership will be anchored in transparency and consumer protection standards. This means clear disclosures about costs, repayment terms, and any fees, along with straightforward application processes and robust dispute resolution mechanisms. The shared commitment to such standards is intended to build trust among beneficiaries and cultivate responsible usage of credit facilities. By aligning product design with these principles, the MoU seeks to minimize risks for both users and the institutions providing credit, while also supporting broader financial education and empowerment initiatives tied to the Taqdeer programme.
Under the MoU, GOSI and Tabby will pursue joint research and development activities to identify suitable credit structures that comply with Shariah norms and are appropriate for pensioners and other beneficiaries. The collaboration will explore how to integrate digital tools, credit analytics, and user-friendly interfaces to facilitate access while preserving stringent governance. The parties will also examine how to ensure consistent adherence to consumer protection standards and regulatory requirements across all product offerings, including mechanisms for monitoring performance, handling grievances, and enforcing compliance. The ultimate aim is to deliver stable, inclusive credit options that are sustainable and scalable within Saudi Arabia’s financial ecosystem.
In conveying the strategic importance of the agreement, both sides highlight the potential for what they describe as a more inclusive financial system in Saudi Arabia. The partnership is positioned as a catalyst for expanding financial access to millions of people who may not have traditionally benefited from standard lending products. It is also viewed as a mechanism to support the pension system’s broader objectives by enabling beneficiaries to participate more fully in the digital economy, improve their purchasing power, and manage household finances more effectively through responsible credit solutions.
Hosam Arab, Tabby’s co-founder and chief executive, described the collaboration as a meaningful step toward widening access to Shariah-compliant credit options. He emphasized that the partnership would help create financing avenues that serve a broad segment of the population, thereby contributing to a more inclusive financial system in Saudi Arabia. Both organizations underscored their commitment to compliance, ethics, and consumer protection as the bedrock of this joint effort. The collaborative approach they advocate aims to ensure that the products designed under the MoU are developed with a strong emphasis on clarity, fairness, and accountability.
Tabby’s track record as a platform that provides flexible payment solutions across three major markets in the region—Saudi Arabia, the United Arab Emirates, and Kuwait—frames the potential impact of the partnership. Tabby reports serving more than 20 million users and partnering with over 40,000 merchants, including well-known international and regional brands such as Amazon, Adidas, IKEA, and Noon. The breadth of Tabby’s merchant network and user base is presented as a foundation for delivering scalable credit options to beneficiaries, with the potential to leverage digital payments infrastructure to reach a wide audience. The MoU invites both organizations to integrate Tabby’s capability to deliver consumer-facing credit features with GOSI’s social protection framework, enabling a practical path to expanded financial inclusion.
The parties have asserted that any resulting products would adhere to rigorous standards of transparency and consumer protection, enabling beneficiaries to understand their obligations and the consequences of credit use. By committing to such standards, the collaboration seeks to minimize information asymmetry and reduce the risk of over-indebtedness. This emphasis on governance and responsible lending aligns with broader regulatory and market expectations for digital credit products in the region, and it aims to reassure beneficiaries about the safety and reliability of the offerings.
GOSI’s Taqdeer programme and the drive for financial inclusion
GOSI’s involvement in this initiative is grounded in its broader mandate to provide social protection and insurance coverage to Saudi citizens, as well as to public and private sector employees, including GCC nationals working in the kingdom. The expansion into credit products through a partnership with Tabby is presented as an extension of GOSI’s mission to support the financial well-being of its beneficiaries. The Taqdeer programme, which translates to “appreciation” or “recognition” in Arabic, is designed to promote digital financial services and inclusive finance as part of Saudi Arabia’s economic transformation strategy. Taqdeer embodies the objective of equipping beneficiaries with tools and services that improve overall financial resilience, moving beyond pension payments to practical, everyday financial solutions.
The Taqdeer initiative situates GOSI’s efforts within the broader frame of Saudi Arabia’s Vision 2030, which seeks to diversify the economy, develop a vibrant digital economy, and enhance the financial literacy and empowerment of citizens. By embracing digital channels and modern financial services, GOSI aims to ensure that beneficiaries can access a broader range of financial products that meet their needs while adhering to safety and ethical standards. The partnership with Tabby aligns with this strategic direction by offering a Shariah-compliant credit option that is designed for accessibility, affordability, and transparency, thereby reinforcing the social protection system’s relevance in a rapidly evolving financial landscape.
A central aspect of GOSI’s strategy under Taqdeer is to improve the financial well-being of beneficiaries. The program recognizes that access to credit, when structured in a consumer-friendly and compliant manner, can help beneficiaries manage liquidity challenges, cover essential expenses, and participate more fully in the consumer economy. The emphasis on digital financial services reflects a broader shift toward convenience, speed, and efficiency in public services and social protection programs. By collaborating with Tabby, GOSI seeks to leverage an established technology platform and payment ecosystem to accelerate the delivery of financial products that are tailored to the needs and risk profiles of pensioners and other beneficiaries.
Moreover, the emphasis on Shariah-compliant credit is particularly salient in the Saudi context, given the significance of religious considerations in financial decision-making for many segments of the population. The partnership aims to ensure that any credit options offered are consistent with Islamic finance principles, emphasizing fairness, avoidance of interest-based lending, and clear, ethical pricing. This approach is intended to resonate with beneficiaries who seek compliant financing options and to foster trust in the financial products introduced through the Taqdeer program. The collaboration thus stands at the intersection of social protection, ethical finance, and digital innovation, reflecting the holistic approach that Saudi policymakers are pursuing to strengthen financial inclusion.
Tabby’s platform, reach, and regional footprint
Tabby has established itself as a prominent fintech player in the Middle East, offering flexible payment solutions across multiple markets. The company operates in Saudi Arabia, the United Arab Emirates, and Kuwait, and it has built a user base exceeding 20 million users. Tabby’s merchant network, which includes more than 40,000 merchants, spans a diverse mix of e-commerce platforms and brick-and-mortar retailers, including global brands such as Amazon and Adidas, as well as well-known regional names like IKEA and Noon. This breadth of connections positions Tabby as a capable partner for delivering scalable credit solutions to a large and varied audience, including the potential beneficiary segment identified by GOSI.
The platform’s core value proposition rests on flexible payment arrangements that empower consumers to manage purchases more effectively. By enabling customers to spread payments over time, Tabby helps improve affordability for a wide range of goods and services. The partnership with GOSI is likely to explore how such flexibility can be adapted to comply with Shariah principles while meeting the needs and risk profiles of pensioners and other beneficiaries. The existing network of merchants and the familiarity of Tabby’s user base with digital payment experiences can facilitate rapid adoption of new credit products designed for compliant use and responsible management of debt obligations.
From a governance and compliance perspective, Tabby’s involvement in Shariah-aligned credit offerings requires collaboration with GOSI to ensure that product design, pricing, and disclosures meet both Islamic finance requirements and consumer protection norms. The partnership is expected to incorporate transparent terms, clear repayment schedules, and accessible customer support channels. The combination of Tabby’s technology and financial ecosystem with GOSI’s social protection framework could yield a model for scalable, ethically aligned credit solutions that are sensitive to the needs of beneficiaries while maintaining high standards of integrity and accountability.
The strategic value of Tabby’s regional footprint also lies in its digital-first approach and user experience. With a mature platform that supports rapid onboarding, real-time credit assessments, and an emphasis on user-friendly interfaces, Tabby is well-suited to adapt its credit products to the special considerations of pensioners and other beneficiaries. The collaboration thus resonates with broader market expectations that digital financial services can be both accessible and responsibly managed, particularly in markets where financial inclusion is a priority and trust in new products must be built carefully through transparent design and robust protections.
Implications for pensioners and beneficiaries: inclusion, access, and financial well-being
The central aim of the partnership is to expand Shariah-compliant credit options for pensioners and other beneficiaries who are often underserved by traditional lenders. By focusing on this demographic, the MoU seeks to address gaps in access to affordable credit that can help beneficiaries manage daily expenses, pay for essential goods, or bridge short-term liquidity needs. The approach rests on the premise that well-structured credit can contribute to improved financial well-being when accompanied by transparent terms, ethical pricing, and clear consumer protections. This reflects a broader recognition that inclusion in financial markets should extend to all citizens, including those who rely on social protections and pension distributions.
From the beneficiaries’ perspective, the opportunity to access credit that aligns with Shariah principles can lead to greater peace of mind and more choices in how to meet budgeting needs. When credit products are designed with clarity and fairness at their core, beneficiaries can make informed decisions about repayment schedules, interest-free or low-cost financing options, and the impact of borrowing on long-term financial health. The emphasis on inclusivity also implies that beneficiaries may gain access to digital financial tools that streamline payments, tracking, and budgeting, thereby reinforcing digital literacy and financial awareness as part of the overall program.
For policy and program delivery, integrating Tabby’s platform with GOSI’s systems introduces potential efficiencies in onboarding, verification, and ongoing monitoring. Digital credit solutions offer the prospect of faster approvals, streamlined disbursement, and real-time payment management, which can be particularly beneficial for beneficiaries who may have limited mobility or time to engage with traditional financial institutions. The collaboration also underscores the importance of aligning product features with the needs and prudential requirements of pensioners, ensuring that credit use remains sustainable and within the risk tolerance of both the beneficiary and the provider.
Additionally, the focus on transparency and consumer protection standards helps to cultivate trust among beneficiaries. Clear disclosures about borrowing costs, repayment terms, and any applicable fees help reduce information asymmetry and support informed decision-making. The emphasis on responsible lending practices is particularly relevant for pensioners, who may be more sensitive to the long-term implications of debt. By prioritizing protections and education, the program aims to empower beneficiaries to manage credit in a way that supports financial security rather than creating new vulnerabilities.
The broader social implications are equally important. Expanding access to Shariah-compliant credit can contribute to higher consumer purchasing power and more stable household finances, potentially reducing the need for informal or unsafe borrowing. It can also support the growth of digital commerce and the adoption of fintech services within the pensioner and beneficiary communities. In the longer term, such an initiative can serve as a blueprint for similar programs across other sectors and demographics, demonstrating how public social protection programs can be coupled with private-sector fintech innovations to deliver tangible financial benefits.
Governance, transparency, and consumer protection standards
A core feature of this collaboration is the commitment to governance, transparency, and consumer protection. The parties have underscored that any products developed under the partnership will comply with established standards that safeguard users. This includes clear and comprehensive disclosures about all costs, the structure of repayment plans, and any fees or penalties. It also encompasses accessible channels for customer support, grievance redress, and a framework for monitoring product performance to ensure ongoing adherence to safety norms and regulatory requirements.
Shariah compliance is a fundamental dimension of the credit products contemplated by the MoU. The partnership will need to incorporate Shariah boards or equivalent governance mechanisms to confirm that financing structures align with Islamic finance principles, including the avoidance of riba (interest) and the adherence to ethical pricing. This ensures that the products are not only compliant with religious guidelines but also consistent with modern financial regulation and consumer protection expectations.
Data privacy and security are essential components of trustworthy digital credit offerings. The collaboration is expected to address how customer data will be collected, stored, used, and protected, with robust measures to prevent unauthorized access, fraud, and data breaches. Given the scale of Tabby’s user base and the sensitivity of financial information, strong data governance practices will be critical to maintaining user confidence and regulatory compliance. The program’s design should incorporate best practices in cybersecurity, risk management, and continuous monitoring to prevent misuse and to detect any anomalies promptly.
From an operational standpoint, the partnership will likely involve joint governance structures, cross-organizational teams, and shared accountability frameworks. Clear delineation of roles, responsibilities, and performance metrics will be important to ensure that product development proceeds smoothly and that consumer protections are continuously upheld. The collaboration should also include provisions for regular audits, external reviews where appropriate, and mechanisms to incorporate learnings from early implementations into subsequent iterations. Such governance rigor is essential for sustaining trust and ensuring that the program can scale responsibly.
Consumer education is another critical element of the protection framework. Transparent information about credit products, including how Shariah compliance translates into pricing and terms, helps beneficiaries make informed decisions. Educational initiatives may cover budgeting strategies, responsible borrowing, and the practical implications of credit on household finances. The MoU’s emphasis on consumer protection suggests that these educational efforts will be integral to program rollout, supporting beneficiaries in navigating new financial tools with confidence.
Strategic significance for Saudi economy and Vision 2030
The GOSI-Tabby partnership aligns with Saudi Arabia’s broader economic transformation goals, which include strengthening financial inclusion, accelerating digital adoption, and expanding the private sector’s role in the economy. By introducing Shariah-compliant credit solutions tailored to pensioners and other beneficiaries, the initiative supports the diversification of financial services and reinforces the shifting financial landscape toward ethical, consumer-friendly products. Such developments can contribute to the expansion of digital finance literacy and the adoption of digital payment ecosystems, which are central to Vision 2030’s objectives.
Financial inclusion is a key pillar of economic modernization, enabling a wider portion of the population to participate in modern financial markets. By targeting beneficiaries who may have been underserved by traditional lenders, the program enhances the reach of financial services to segments of society that contribute to overall economic resilience. The collaboration also demonstrates the flexibility and adaptability of Saudi financial institutions to respond to evolving consumer needs through partnerships with fintech platforms that bring innovative tools and customer-centric solutions to market.
From a macroeconomic perspective, the initiative supports the growth of consumer credit markets within a regulated and ethical framework. A responsible, Shariah-compliant credit option that is accessible to a large demographic can help stimulate consumption, support small merchants, and fortify the digital economy’s infrastructure. This aligns with policies aimed at stimulating domestic demand, encouraging savings, and promoting financial literacy among a broad cross-section of citizens and residents. As Saudi Arabia continues to pursue Vision 2030 objectives, such collaborations illustrate how public institutions can leverage private-sector innovation to achieve inclusive growth.
The program also signals confidence in the stability and resilience of the Saudi financial system. The emphasis on transparency, consumer protection, and governance indicates a mature approach to digital credit products that balances innovation with safeguards. For policymakers, the MoU provides a case study in how to implement scalable, culturally aligned financial solutions that respect local norms while incorporating global best practices. By showcasing a model that integrates social protection with fintech-enabled credit, the partnership reinforces Saudi Arabia’s commitment to modernizing its financial services landscape in a way that benefits a broad spectrum of society.
Implementation roadmap, risk management, and monitoring
Translating the MoU into tangible products will require careful planning, phased implementation, and ongoing evaluation. The initial phase is likely to focus on design principles, ensuring that Shariah-compliant structures are embedded from the outset, and that the product concepts align with GOSI’s goals for beneficiary welfare and financial inclusion. This phase would also involve establishing governance mechanisms, defining risk appetites, and setting up compliance monitoring processes to ensure alignment with consumer protection standards and regulatory requirements.
Next, a pilot program may be introduced to test product concepts with a limited group of beneficiaries. The pilot would enable real-world assessment of uptake, repayment behavior, user experience, and any operational frictions. It would also provide an opportunity to refine underwriting criteria, credit limits, repayment schedules, and customer support workflows. Data gathered during the pilot would inform adjustments to product parameters and risk controls before broader rollout.
Key risk management considerations include the potential for over-indebtedness, credit risk, and fraud, all of which would be mitigated through robust identity verification, cash-flow analysis, and continuous monitoring. The experience of Tabby’s platform with a large user base can inform risk modeling, while GOSI’s oversight can ensure alignment with social protection objectives. The collaboration will need to establish clear escalation paths for delinquencies, disputes, and changes in beneficiaries’ circumstances, ensuring that safeguards remain effective as the program scales.
Data governance and privacy will be central to the implementation. The program must specify data-sharing arrangements, consent mechanisms, and security controls to protect beneficiaries’ financial information. Compliance with applicable data protection regulations and cyber risk management standards will be essential to maintaining trust and ensuring sustained participation.
From an operational perspective, integration with GOSI’s systems and processes will be critical. This includes aligning beneficiary onboarding, eligibility verification, and payment reconciliations with Tabby’s technology infrastructure. The project will likely involve cross-functional teams from both organizations, with clear timelines, milestones, and accountability. Regular reviews and performance assessments will be necessary to ensure progress, address challenges, and make informed decisions about scaling.
Communication and stakeholder engagement will play a vital role in the rollout strategy. Transparent messaging about product features, Shariah compliance, and consumer protections can help beneficiaries understand the benefits and responsibilities associated with the new credit options. Educational campaigns may accompany the product introduction to build financial literacy, promote prudent borrowing, and illustrate how to use the credit tools to improve daily financial management. The program’s success will depend not only on technical execution but also on the quality of engagement with beneficiaries, merchants, and broader community audiences.
Practical implications for users, merchants, and the market
For beneficiaries, the availability of Shariah-compliant credit options through Tabby offers a practical pathway to access financing that aligns with religious guidelines and personal values. This could enable more flexible budgeting for essential purchases and services, with an emphasis on responsible usage and clear repayment expectations. The program’s design aims to minimize friction in the application process and maximize accessibility, potentially reducing the time between application and approval and enabling timely access to funds when needed.
For merchants, the partnership signals an opportunity to reach a broader customer base, including beneficiaries who may have previously faced credit constraints. The collaboration with a reputable public-protection institution and a well-established fintech could support higher conversion rates and more stable cash flows, benefiting retailer partners who adopt Tabby’s payment solutions. The emphasis on Shariah compliance and consumer protection can also reassure merchants of the legitimacy and ethics of the program, reinforcing brand trust and alignment with community values.
From a market perspective, the initiative could contribute to the maturation of the credit ecosystem in Saudi Arabia by introducing structured, compliant, and consumer-friendly credit products for a significant demographic. It may encourage other fintechs and financial institutions to explore partnerships that combine public social programs with private-sector innovation, expanding options for diverse segments of the population. The ongoing emphasis on transparency and governance is likely to influence industry standards and shape expectations around how digital credit products should be designed, marketed, and governed in the region.
The program’s success could also have positive spillover effects on digital literacy and financial education. Beneficiaries who participate in Levelling up their financial tools may become more adept at managing budgets, planning expenditures, and leveraging digital payment channels. This can contribute to broader societal benefits, including improved financial resilience, reduced reliance on informal lending, and greater participation in the formal economy. Policymakers and industry stakeholders may monitor outcomes to assess the long-term impact on household financial health and the stability of the consumer credit market.
Conclusion
The GOSI-Tabby memorandum of understanding represents a strategic convergence of social protection, religious-ethical finance, and digital innovation. By jointly pursuing Shariah-compliant credit products for pensioners and other beneficiaries, the partnership seeks to expand access to responsible credit within Saudi Arabia’s evolving financial landscape. This collaboration aligns with GOSI’s Taqdeer programme and the broader Vision 2030 agenda, underscoring a commitment to financial inclusion, digital transformation, and increased economic participation for a wide cross-section of society. The joint emphasis on transparency, consumer protection, and governance is designed to foster trust, empower beneficiaries, and drive sustainable growth within the Kingdom’s increasingly digital economy.
As this initiative moves from planning to implementation, continued focus on sound risk management, robust compliance, and clear beneficiary education will be essential. If successful, the program could serve as a scalable model for public-private partnerships that combine the strengths of social protection agencies with fintech platforms to deliver inclusive, ethical, and financially resilient outcomes for millions of people. The collaboration illustrates how Saudi Arabia is leveraging innovative financial solutions to advance social objectives while reinforcing the integrity and resilience of its financial system.