Card transactions in the United Arab Emirates are projected to reach AED565.5 billion, equivalent to $154 billion, in 2025, according to research conducted by GlobalData. This projection reflects a significant growth trend, with card payment values having risen by 13 percent year-on-year to AED511 billion last year.

The increasing preference among consumers for digital transactions, coupled with government support for financial inclusion, is driving this shift towards electronic payments. GlobalData estimates an additional growth of 11 percent in card payments for the current year.

Ravi Sharma, the lead banking and payments analyst at GlobalData, noted that while cash remains the most preferred payment method, there is a gradual shift toward card payments. He emphasized that this change is indicative of evolving consumer habits in the UAE’s payment landscape.

Government initiatives aimed at promoting electronic payments include the implementation of a wage protection system, which mandates that employers pay salaries electronically through authorized financial institutions. Furthermore, the government is also pursuing a financial infrastructure transformation program that encourages the use of mobile payments.

Launched in October 2024, the ‘Dubai Cashless Strategy’ aims to ensure that 90 percent of all transactions are conducted digitally by 2026. The rise of mobile point-of-sale terminals has become particularly popular among small and medium-sized enterprises (SMEs), which represent 94 percent of UAE companies and contribute over 60 percent to the country’s GDP.