According to a recent report, the UAE’s second-largest economy’s young and tech-savvy population will be the primary driver of the payments industry’s revenue growth reaching $18.7 billion by 2031.
Revenues are anticipated to increase between 2021 and 2031 at a compound annual rate of 7.7%, according to a recent report. Over the next ten years, the industry’s growth will be primarily driven by revenues from credit cards, debit cards, and current accounts.
The UAE is laying out the blueprint for the future economy and the next 50 years of its development, and among its top priorities are the digitization of the payments sector and the creation of a FinTech ecosystem. As the government encourages the growth of the payments business, numerous digital banks and specialised payments players have been established in the UAE just this year.
Venture capital firms are also paying more and more attention to the FinTech sector. Based on the findings of the report, funding for startups in the Middle East and North Africa increased 20% yearly to more than $2.3 billion in the first three quarters of 2022. Fintech continued to be the top sector over the time period, with 94 agreements totalling $747 million, an increase of nearly three quarters on an annual basis.
Tabby, a MENA FinTech company from the UAE, raised $150 million, Tamara, a company from Saudi Arabia, raised $100 million, and Wave Mobile Money, a company from Senegal, raised $91.6 million.
“Cross-industry participation in digital payments will [also] provide an added impetus to the region’s already burgeoning sector,” Mr Khan said.
Over the next five years, the global payments industry’s outlook will be shaped by four themes, which will also propel growth in the UAE. Payments players will need to show strong profitability to draw customers and investors as the era of unprofitable expansion comes to an end.
As regulators continue to shape CBDCs to supplement cash with digital central bank money, it was predicted that central bank digital currencies will continue to gain popularity.
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