The UAE’s payments sector is poised for significant growth, with revenues expected to reach $27.3 billion by 2028, according to the Global Payments Report 2024 from Boston Consulting Group (BCG). Despite a global slowdown, the UAE leads the GCC, supported by its rapid digital transformation and investments in the financial sector.
The report highlights the importance of adapting to changing customer expectations, regulatory scrutiny, and technological disruptions. While global growth is slowing, the UAE continues to experience high growth and innovation in the region.
Globally, payments revenue growth is projected to slow, with a compound annual growth rate (CAGR) of just 5% by 2028, resulting in a global payments revenue pool of $2.3 trillion. This marks a significant drop from the 9% CAGR seen over the past five years, which raised the global revenue pool to $1.8 trillion in 2023. North America and Europe will see the most significant slowdowns, with only 3% annual growth. In contrast, regions like the Middle East, Latin America, and Asia-Pacific will experience higher growth, with the Middle East projected to grow at a 7% CAGR, driven by digital payments in emerging markets.
The UAE’s payments revenue grew from $9.8 billion in 2018 to $18.8 billion in 2023, with a CAGR of 13.8%. By 2028, revenues are expected to rise by 45%. Transaction volumes are also set to increase from 1.7 billion in 2023 to 3.1 billion by 2028, a 78% increase. This growth is driven by the shift from cash-based to digital payments, supported by government initiatives and rising fintech adoption.
