Tabby vs. Tamara: A Neutral Comparison, and Are Installments Halal?

If you're asking "Tabby or Tamara: which is better?", the short answer is that there's no single winner. Both are licensed by the Saudi Central Bank (SAMA), both dropped late fees in Saudi Arabia in December 2023, and both have published Shariah oversight. Most scholars also consider buying in installments permissible in principle. The real difference is in the plan you pick: is it interest-free payments with no cost at all, or a longer plan with a fixed profit? And does it fit your salary?

This tip covers what Islamic scholarly bodies say about installment buying, a neutral side-by-side comparison based on what each company has announced as of October 2026, and five steps to choose what suits you. If you first want to know when buy now, pay later helps and when it turns into debt, start with our guide to using buy now, pay later wisely.

Is buying in installments halal? What scholarly bodies say

It's one of the most searched money questions in the Gulf. The answer depends on separating three issues.

1. The installment sale itself

Saudi Arabia's Permanent Committee for Scholarly Research and Fatwa has stated that installment sales are permissible, and the International Islamic Fiqh Academy endorsed them at its sixth session in Jeddah in 1990. The late Sheikh Ibn Baz also allowed the installment price to be higher than the cash price, because a deferred sale is different from a cash sale. In other words, most scholars accept a higher price in exchange for paying later, as long as the full price is fixed when the contract is made.

2. Extra charges for paying late

This is where the real concern lies. Fiqh Academy rulings hold that if a buyer is late with an installment, they can't be made to pay anything on top of the debt, because that counts as riba (interest). That's why late fees were behind most religious objections to installment apps in past years.

The key change: on December 16, 2023, Tabby announced it was removing late fees on its Pay in 4 product in Saudi Arabia, saying it did so in response to a fatwa from the Council of Senior Scholars. On the same day, Tamara announced it was discontinuing late fees, citing its commitment to Shariah principles.

3. Longer plans with a fixed profit

Some plans are no longer "interest-free" but longer plans with a cost. Tabby says its longer plans are built on murabaha, a cost-plus sale: the cost is agreed upfront and stays fixed for the life of the plan, with no compounding and no late fees. Murabaha is a well-established Islamic finance structure, but whether a given product is sound depends on the contract details. So read the Shariah certificate for the specific product, and if you're still unsure, ask a scholar you trust or a recognized fatwa body. This tip reports what the named bodies have said; it doesn't issue a ruling.

Tabby vs. Tamara: the announced facts

The table below is based on what the two companies and official sources had announced as of October 2026. Terms change, so check them in the app before any purchase.

As you can see, the basics are nearly identical. The bigger differences are in the longer plans, which stores accept each company, and how the app itself works for you.

How to choose: 5 steps

1. Start with the most important question: would you buy this today if installments weren't available? If not, don't pick either company.
2. Know the plan type before the company: is it payments with no cost, or a longer plan with profit? For a longer plan, find the total you'll pay and compare it with the cash price.
3. Check the Shariah side yourself: open the Shariah certificate page on the company's website or app, and make sure it covers the product you'll use, not just the company in general.
4. Stick to one account: the two services are similar at their core, and juggling several makes your payments harder to track. Choose the one available at the stores you usually shop at.
5. Line payments up with payday: set due dates for after your salary arrives, and turn on auto-pay from an account with enough balance.

Common mistakes to avoid

• Thinking "no late fee" means "no consequences": the debt is still there, and late payments show up on your credit report. Our guide to reading your SIMAH credit report explains how that works.
• Mixing up plans: a free Pay in 4 doesn't mean a 12- or 24-month plan is free too. Read the disclosure every time.
• Relying on what's going around: fatwas shared on social media may be out of date and describe terms that changed in 2023. Go back to the source.
• Splitting what you consume right away: putting restaurants or groceries on installments points to a budget problem, not a lack of payment options.

Example: free installments or a longer plan?

Say you're buying a SAR 4,000 appliance (about $1,070; the riyal is pegged at 3.75 to the dollar) and your salary is SAR 8,000. These are hypothetical numbers, and the longer plan's cost is an example, not a real rate:

The smaller payment feels easier, but it costs you SAR 320 more and keeps you committed for a full year. And if a SAR 1,000 payment would squeeze your salary, it may be better to build your savings first and buy afterward.

The bottom line

• Neither company is better across the board: Tabby and Tamara are both licensed, both have had no late fees in Saudi Arabia since December 2023, and both have Shariah oversight.
• Most scholars permit installment sales; the main religious concern was late fees.
• Longer plans have a cost, so compare the total with the cash price and read the plan's Shariah certificate.
• This week: open the installment app you use and write down every open plan, its type and its total cost.

Sources: Dorar Encyclopedia of Fiqh (Permanent Committee fatwa and Fiqh Academy resolution), Sheikh Ibn Baz official site, IslamQA, Tabby: removing late fees (December 2023), Tabby: finance licenses (June 2026), Salaam Gateway, Tamara: discontinuing late fees, Tamara: SAMA finance license, Mubasher, SAMA, Rules Regulating BNPL Companies.