ABU DHABI: The UAE’s payments sector is on track for major expansion, with revenues projected to hit $27.3 billion by 2028, according to Boston Consulting Group’s (BCG) Global Payments Report 2024. This marks a 45% rise from $18.8 billion in 2023, fuelled by the country’s digital transformation and strategic investments in financial technology.
BCG’s report, titled Fortune Favors the Bold, highlights how countries like the UAE are defying global trends. While worldwide payment revenue growth is slowing, the UAE stands out as a regional leader, driven by rising fintech adoption, government-backed initiatives, and a shift from cash to digital payments. The UAE’s payments revenue soared from $9.8 billion in 2018 to $18.8 billion in 2023, reflecting a compound annual growth rate (CAGR) of 13.8%.
Globally, the payments market faces a slowdown, with revenue growth expected to drop from a 9% CAGR (2018-2023) to just 5% CAGR through 2028, reaching $2.3 trillion. In contrast, the Middle East, led by countries like the UAE, is forecast to grow at a faster 7% CAGR, driven by surging digital payments in emerging markets.
Transaction volumes in the UAE are also expected to rise sharply from 1.7 billion in 2023 to 3.1 billion by 2028, a staggering 78% increase. The shift from cash to digital payments is being powered by fintech innovation, government policies, and the growing demand for cashless transactions.
With strong growth forecasts, strategic investments, and rising consumer adoption of digital payments, the UAE is cementing its position as a payments powerhouse in the Middle East.