The UAE is introducing a more flexible way for residents to manage government payments, rolling out installment options that make settling fees and fines simpler and more accessible than ever. According to a recent announcement, the UAE Ministry of Finance has introduced the Buy Now, Pay Later model to government services. In a first-of-its-kind partnership, the ministry has teamed up with fintech unicorn Tabby allowing residents to split payments for federal fees and fines into monthly installments, effectively bringing consumer-style flexibility to traditionally rigid government transactions.

The collaboration makes it possible for individuals dealing with federal entities to choose installment payments at authorized channels. Tabby fronts the full amount to the government, while customers repay Tabby on pre-agreed terms. The ministry says it secured a preferential commission rate, which only applies to customers who opt for the BNPL feature.

Saeed Rashid Al Yateem, Assistant Under-Secretary for Government Budget and Revenue, called the agreement a “paradigm shift” in how federal finances are managed, framing it as part of a broader modernization push across payment systems and revenue collection. The move aligns with the UAE’s longer-term digital transformation agenda, expanding electronic payment options and boosting financial inclusion.

For Tabby, which has built a strong footprint across the Middle East and North Africa, the partnership marks its first entry into the federal government space. Hosam Arab, Co-founder and CEO of Tabby, said the deal reflects the company’s mission to extend financial flexibility to more people and to make essential services easier to access.

The initiative covers all federal entities and is designed to streamline financial processes, unify digital platforms, and strengthen the overall efficiency of federal revenue systems, bringing private-sector-style fintech innovation into the heart of public service delivery.