UAE’s Payments Industry to Reach $27.3 Billion by 2028, Leads GCC in Growth

The UAE’s payments industry is set for significant expansion, with total revenues projected to reach $27.3 billion by 2028, according to the Global Payments Report 2024 by Boston Consulting Group (BCG).

Despite a global slowdown in growth rates, the UAE continues to outpace the GCC region, fueled by rapid digital transformation and strategic investments in the financial sector.

The report, titled Fortune Favors the Bold, highlights the challenges of navigating an evolving payments landscape, including shifting customer expectations, increased regulatory scrutiny, and technological disruptions. While global payments revenue growth is expected to slow to a 5% CAGR through 2028—half of the previous five-year growth—the Middle East remains a key growth market, with a projected CAGR of 7%.

In the UAE, payments revenue surged from $9.8 billion in 2018 to $18.8 billion in 2023, reflecting a robust CAGR of 13.8%. This upward trajectory is expected to continue, with revenues climbing 45% over the next five years to reach $27.3 billion by 2028. Transaction volumes are also anticipated to rise significantly, increasing from 1.7 billion in 2023 to over 3.1 billion by 2028—a remarkable 78% jump.

The UAE’s shift from cash-based to digital payments, driven by government initiatives and growing fintech adoption, is a major contributor to this growth. As North America and Europe face slower revenue increases, the UAE stands out as a regional leader, reinforcing its position as a global hub for innovation in digital payments.

With digital payments accelerating across emerging markets, the UAE remains at the forefront, leveraging its advanced infrastructure and strategic vision to sustain its growth trajectory.

News Source: Emirates News Agency