Dubai has announced its ambitious plan to transition into a cashless city, where all payments across both government and private sectors will be made digitally. This significant initiative was revealed during a meeting of The Executive Council of Dubai, chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, on Tuesday, October 1.

A key milestone in this strategy was reached on Friday, May 16, 2025, when Dubai Finance and the Dubai International Financial Centre (DIFC) signed an agreement to bolster the cashless initiative. The cashless strategy, initially introduced in October 2024, aims to eliminate cash transactions by ensuring that around 90 percent of all transactions are digital by 2026. This shift is expected to enhance economic growth by over Dhs8 billion annually.

While transitioning to a cashless system, Dubai will not entirely abandon physical money. Instead, the focus will be on facilitating digital payments through banking apps and credit cards, which are currently the primary methods of cashless transactions. The strategy also emphasizes the adoption of innovative digital payment methods, including AI-driven solutions and contactless technologies, to offer a variety of payment options.

The collaboration between DIFC and Dubai Finance will include specialized workshops aimed at helping businesses adapt to this digital transition. This partnership is designed to introduce AI-driven initiatives that will benefit workers, tourists, and the wider community by promoting digital payment systems.

Dubai is setting ambitious goals, with plans for all stores to accept digital payments and for residents to be able to make transactions electronically. This means that traditional cash transactions at markets could soon become obsolete.

At the recent meeting, the city also explored its broader strategies in real estate, education, and transportation, highlighting a comprehensive approach to its economic development. As Dubai aims to position itself among the top five cashless cities globally, the focus remains on enhancing convenience and speed in payments for consumers, payment service providers, and merchants alike.