What To Know
- There is a slow pace experienced in the global payments growth, the UAE has been seen to lead other countries in the GCC due to emersive technological advancement as well as right financial investment on the same.
- Primarily, it can be attributed to the transition of the UAE from a non-cash economy to a digital non-cash economy due to government action and advocacy as well as innovation by the private sector.
- That is why UAE carries on remaining at the forefront of digital payment progressiveness, as a result of which the necessary development and growth occur persistently.
The payments industry in the UAE is expected to make a spectacular leap with the projected revenue to reach $27.3 billion by 2028 by BCG’s Global Payments Report 2024. However, there is a slow pace experienced in the global payments growth, the UAE has been seen to lead other countries in the GCC due to emersive technological advancement as well as right financial investment on the same.
Powerful regional results when the entire global picture deteriorates
But global payments revenue growth is expected to decline, with CAGR thus halving to 5 per cent by 2028 with the Middle East expected to post double that at 7 per cent CAGR. The UAE is already following this trend and demonstrates a very active approach to the development of the financial ecosystem. Payments revenue is likely to generate $2.3 trillion in 2028, $1.8 trillion by 2023; however, the UAE has a CAGR of 13.8%, 2018 – 2023.
UAE Payments Sector: A Bright Spot
It shows that between 2018 and 2023, the payments revenue in UAE has increased from $ 9.8 billion and $ 18.8 billion owing to the adoption of Fintech and government promotion for cashless business. Such healthy growth is expected to sustain and revenues are expected to grow by $45 billion in the next five years alone. Transaction values are also anticipated to skyrocket with the transaction volumes expected to be 1.7 billion in 2023 and over 3.1 billion by 2028 – a 78% increase.
Key Drivers of Growth
Primarily, it can be attributed to the transition of the UAE from a non-cash economy to a digital non-cash economy due to government action and advocacy as well as innovation by the private sector. The country has made splendid strategic investments in the fintech and regulation sectors hence fostering growth of payments sector.
According to BCG’s report Fortune Favors the Bold, customers’ changing behavior, enhanced regulations and new technologies are top factors in a competitive environment. That is why UAE carries on remaining at the forefront of digital payment progressiveness, as a result of which the necessary development and growth occur persistently.
