- Shift is primarily driven by increasing consumer preference for digital transactions, robust government support for financial inclusion and comprehensive digital transformation efforts across various sectors
The United Arab Emirates (UAE) is undergoing a significant financial transformation, marked by a strong push towards a cashless economy. Data and analytics company GlobalData projects UAE’s card payments market to surpass $150 billion in 2025, representing a 10.6 per cent growth rate.
The shift is primarily driven by increasing consumer preference for digital transactions, robust government support for financial inclusion and comprehensive digital transformation efforts across various sectors.
The rising prominence of card payments is evident in the substantial 13.3 per cent growth observed in 2024, reaching AED511.4 billion ($139.3 billion). This growth can be attributed, in part, to initiatives such as the “Wage Protection System,” which mandates electronic wage payments through authorised financial institutions.
This system not only increases financial inclusion by bringing more individuals into the formal banking system but also fosters demand for banking and payment products like debit and credit cards.
Dubai Cashless Strategy
Further solidifying the move towards a cashless society is the Dubai Cashless Strategy, launched in October 2024 with the ambitious goal of achieving 90 per cent cashless transactions in Dubai by 2026.
The strategy aims to broaden the adoption of digital payment solutions across both government and private sectors through innovative technologies, including artificial intelligence and contactless payment methods.
Moreover, the Financial Infrastructure Transformation (FIT) Program and the expansion of Point-of-Sale (POS) infrastructure, including the proliferation of cost-effective mobile POS terminals for SMEs, are crucial components supporting this transition, Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, said.
While the forecast for continued growth in card payments is optimistic, the report also acknowledges potential challenges. The current global economic uncertainty, stemming from factors like new US tariffs, could potentially impact the UAE’s overall economic growth and, consequently, slow down the pace of expansion in the card payments market.
Despite this potential headwind, Sharma said the underlying trend remains positive, with GlobalData projecting a compound annual growth rate (CAGR) of 9.6 per cent between 2025 and 2029, leading to an estimated AED 814.7 billion ($221.8 billion) in card payments by 2029.
The projection underscores the UAE’s commitment to fostering a digital economy and its potential to become a leader in cashless transactions within the region.