The UAE’s payments industry is set for substantial growth, with total revenues expected to reach $27.3 billion by 2028, as detailed in the latest Global Payments Report 2024 from Boston Consulting Group (BCG). Despite a global slowdown in growth rates, the UAE leads the GCC, propelled by its swift digital transformation and strategic investments in the financial sector.
The Global Payments Report 2024 marks BCG’s 22nd annual assessment of the global payments landscape, emphasizing the necessity for decisive action in a rapidly changing environment. Titled “Fortune Favors the Bold,” the report underscores the importance of adapting to evolving customer expectations, increasing regulatory scrutiny, and technological disruptions. While global growth is decelerating, the UAE stands out as a beacon of high growth and innovation in the region.
Global trends in payments revenue growth
On a global scale, payments revenue growth is anticipated to slow considerably, with the compound annual growth rate (CAGR) halving to 5 percent through 2028, leading to a global payments revenue pool of $2.3 trillion. This represents a sharp decline from the 9 percent CAGR observed over the past five years, which had propelled the global revenue pool to $1.8 trillion in 2023. North America and Europe are expected to see the most significant slowdowns, with projected annual revenue increases of only 3 percent. In contrast, regions such as the Middle East, Latin America, and Asia-Pacific are predicted to experience higher growth, with the Middle East anticipated to grow at a 7 percent CAGR, driven by the rapid expansion of digital payments in emerging markets.
Read more: UAE’s GPSSA announces over $218.6 million in pension payments for November 2024
Historical growth of the UAE payments sector
The UAE’s payments sector has experienced robust growth in recent years. From 2018 to 2023, the country’s payments revenue surged from $9.8 billion to $18.8 billion, achieving a CAGR of 13.8 percent. Additionally, by 2028, the UAE is expected to reach $27.3 billion in revenues, reflecting a 45 percent increase over the next five years.
Future trends in transaction volumes
Transaction volumes in the UAE are also projected to rise significantly, increasing from 1.7 billion in 2023 to over 3.1 billion by 2028, which represents a 78 percent growth. Furthermore, this transition from cash-based to digital payments, driven by government initiatives and growing fintech adoption, continues to fuel this expansion.
