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Saving money in Saudi Arabia: cards, pay later and supermarket offers

Country guideSaudi ArabiaLast checked

The short answer

You can save in Saudi Arabia by using the right card, comparing supermarket flyers and being careful with pay later apps. VAT is 15% on most goods and services. This page links to our detailed guides.

Quick facts

Currency
Saudi riyal (SAR) (source: PwC Worldwide Tax Summaries: Saudi Arabia other taxes)
VAT
15% standard rate since 1 July 2020 (source: PwC Worldwide Tax Summaries: Saudi Arabia other taxes)
Pay later apps covered
Tabby and Tamara (source: Tabby help: about Tabby)

What to know about prices and VAT

PwC's Worldwide Tax Summaries says that from 1 July 2020 the standard VAT rate in Saudi Arabia was increased to 15%. Before that, VAT had been 5% since the law took effect on 1 January 2018. The ZATCA is the authority that runs VAT in the Kingdom.

At 15%, VAT is a big part of the price, so a promised discount is worth checking on the final receipt. Prices displayed in shops normally include VAT, but confirm this on the tag or at the till.

Cards and cashback

Most savings in Saudi Arabia come from using the right card for the right shop. Many cards give a higher cashback rate or points on groceries, fuel, dining or online shopping, and some have a minimum monthly spend before the higher rate applies. Others cap the cashback you can earn in a month.

The details change often, so read your card's current terms from your bank. Look for four things: the categories that earn more, the minimum monthly spend, the monthly cap in SAR, and what the card excludes, such as rent, fees or utility bills. If you hold two or three cards, write down which one is best for which kind of shop.

Our Visa offers and Mastercard offers guides explain how to find card offers and how to read their small print. An offer usually has an end date and a list of shops that qualify, so check both before you pay.

Think about timing too. Some cards count spending from the statement date, not the calendar month, so a purchase at the end of the month may land in the next cycle. Keep a note of your statement date and of how much you have spent so far in SAR, so you know whether you are near a minimum or a cap before a big purchase.

Do not spend more just to earn a reward. Cashback of a few percent is only worth it on money you would have spent anyway. Pay the card balance in full each month, because interest on an unpaid balance can cost more than the cashback earns.

Memberships, loyalty cards and discounts

Besides bank cards, shops in Saudi Arabia run their own loyalty cards, and some employers, clubs or banks offer discount schemes. Each one has its own rules about who can join, which shops take part and how long points last. Always check the current terms from the scheme itself. Our guide to loyalty programmes in Saudi Arabia covers what to check before you join. Memberships that are only for people in the UAE, such as Fazaa, Esaad or Homat Al Watan, do not apply in Saudi Arabia.

If you carry several cards, the easy mistake is forgetting one at the till. Keep the digital version on your phone where the scheme allows it. Fawz keeps your membership cards on your phone, and only sends them to us if you choose.

At the till, ask which discount applies. Sometimes a loyalty discount and a card offer can be combined, and sometimes only one counts. The cashier or the shop's terms will tell you.

Supermarket offers and flyers

Groceries are the shop most people visit every week, so small differences add up. Supermarkets in Saudi Arabia publish flyers with weekly deals, and the same item can have a different price at each chain. A flyer price is only valid for the dates printed on it, and often only while stock lasts.

Our guide to supermarket flyers in Saudi Arabia explains how the weekly deals work, and our Lulu and Carrefour guides explain how to read their offers and loyalty schemes. Compare unit prices, such as the price per kilo or per litre, rather than the headline price on a pack. A larger pack is not always cheaper per unit.

Loyalty cards at supermarkets can add small extras, such as points or member prices. Ask at the till what a card gives you, and check how long points stay valid. Prices in the flyer may already include the discount, so do not count it twice. A simple habit helps. Before the weekly shop, check the flyers for the three or four items you buy most, then pay with the card that earns the most on groceries.

Pay later with Tabby and Tamara

Tabby and Tamara both let you split purchases at partner shops. Tabby announced it removed late fees on its Pay in 4 product in Saudi Arabia from 16 December 2023, following a fatwa from the Council of Senior Scholars. Tamara's websites say it charges no late fees and describe it as Sharia compliant.

That does not make missed payments harmless. Tamara says repeated delays can lead to account suspension and an effect on your credit score. Tabby's help material says you may be unable to buy with Tabby until dues are paid. Our Tabby and Tamara guides explain what each says in more detail.

Pay later spreads the cost. It does not lower the price, and it does not change how your card's cashback works.

A simple saving routine

  • Know which card earns the most for groceries, fuel and dining.
  • Check your monthly spend against any minimum your card needs.
  • Check supermarket flyers before the weekly shop.
  • Compare unit prices, not pack prices.
  • Ask at the till which discount applies.
  • Plan big purchases ahead, so you can check offers and spend caps first.
  • Check the total on the receipt before you leave the till.

How Fawz helps

Fawz is not released yet, and you can join the waiting list. When it is out, it suggests which of your cards or memberships to use at the till, tracks minimum monthly spend and caps so you hit the higher cashback rate, and compares supermarket flyer prices so you see where an item is cheapest.

Fawz also plans big purchases across your cards. It never stores card numbers or bank logins and never reads SMS.

Join the waiting list

Questions people ask

What is the VAT rate in Saudi Arabia?

15%, since 1 July 2020, according to PwC's Worldwide Tax Summaries.

Are there late fees on Tabby in Saudi Arabia?

Tabby announced it removed late fees on Pay in 4 in Saudi Arabia from 16 December 2023.

Does Tamara charge late fees?

Tamara's websites say no late fees. Repeated delays may still lead to suspension and credit score effects.

How can I save on groceries in Saudi Arabia?

Compare weekly flyers for your regular items, check unit prices, and use the card that earns most on groceries. See our Saudi supermarket flyers guide.

Where do I find Visa offers in Saudi Arabia?

Our Visa offers guide explains how to find and read them. Confirm the current terms in your bank's app.

Do pay later apps save me money?

No. They split the payment, but the price is the same.

Sources

  1. PwC Worldwide Tax Summaries: Saudi Arabia other taxestaxsummaries.pwc.com
  2. Tabby help: about Tabbytabby.ai
  3. Tamara Kuwait (list of countries)tamara.co
  4. Tabby: removes late fees on Pay in 4 in Saudi Arabiatabby.ai

Last checked . Terms change, so check the current terms before you rely on an offer.

All guides for Saudi Arabia

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    Where Carrefour still operates in the Gulf, how SHARE points work, what the MAF Carrefour app offers, and what replaced Carrefour in Oman, Bahrain and Kuwait.

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  • Cheapest groceries in Saudi Arabia with weekly flyers

    Find cheap groceries in Saudi Arabia with weekly flyers: Panda, Othaim, Tamimi, LuLu and Carrefour offers, how to compare unit prices in SAR, and tips.

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  • LuLu Hypermarket in the GCC

    LuLu offers across the GCC: how the free Happiness rewards programme works, where to find the weekly flyers, how the LuLu app works and simple ways to save.

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  • How cashback credit cards work in Saudi Arabia

    How cashback credit cards work in Saudi Arabia, with examples from Al Rajhi Bank and Riyad Bank pages, plus how mada debit cards fit in. No rankings.

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  • Mastercard Priceless Specials offers in the Gulf

    How Mastercard Priceless Specials works for cardholders in the UAE, Saudi Arabia, Kuwait, Bahrain and Oman, plus Priceless in Qatar: cards, redeeming, limits.

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  • Minimum spend and cashback caps, explained

    What minimum spend and cashback caps mean on a credit card, a worked AED example, and why using the right card at the right shop changes what you earn.

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  • Visa card offers in the Gulf

    Where Visa lists card offers for UAE, Saudi Arabia and Kuwait cardholders, how the offers work, which cards qualify and how to check the terms.

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  • Tabby in the UAE, Saudi Arabia and Kuwait

    How Tabby split payments work in the UAE, Saudi Arabia and Kuwait, the fees and late fees Tabby states, where to use it, and tips to avoid missed payments.

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  • Tamara in the UAE, Saudi Arabia, Kuwait and Bahrain

    How Tamara split payments work in the UAE, Saudi Arabia, Kuwait and Bahrain: what Tamara says about late fees, who can use it, where, and tips.

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  • Loyalty programmes in Saudi Arabia

    The main Saudi loyalty programmes we could confirm, stc Qitaf, Al Rajhi Mokafaa and Mobily Neqaty, and how you earn and spend points in each.

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