United Arab Emirates (UAE) Credit Card Transactions Market Overview, 2029

Credit cards remain popular in the market, thanks in large part to the appeal of rewards and cashback schemes, which provide major incentives to users. The ease and incentives provided by these programs play an important role in enticing people to use credit cards over alternative payment options. Furthermore, the rapid expansion of e-commerce has cemented credit cards as the favoured method of online payment. With consumers increasingly relying on online buying, credit cards' security and convenience of use have become vital. Furthermore, the rise of embedded finance solutions represents a significant trend in which financial goods are smoothly incorporated into non-financial activities, adapting to changing customer demands and increasing accessibility. Recent advancements in the UAE's credit card business demonstrate a rising emphasis on contactless payments and tokenization to improve user security and convenience. Additionally, collaborations between card issuers and airlines or businesses have resulted in the creation of co-branded cards, which provide customers with exclusive privileges and rewards. Furthermore, the growing use of artificial intelligence (AI) and machine learning technology for fraud protection and personalised offers reflects a larger trend of harnessing data-driven insights to improve consumer experiences and manage risks in the credit card ecosystem. These changes highlight the industry's dynamic nature and stakeholders' continual attempts to embrace innovation and overcome new issues.

According to the research report “United Arab Emirates Credit Card Transaction Market Overview, 2029," published by Bonafide Research, the United Arab Emirates Credit Card Transaction market is expected to grow with more than 7% CAGR from 2024 to 2029. Along with technological improvements, the abundance of tech-savvy consumers highlights the growing usage of digital payments. Factors such as ubiquitous internet access and smartphone use have played a crucial role in this shift to digital commerce. Furthermore, the desire for an affluent lifestyle, defined by a preference for ease and luxury expenditure, contributes to credit cards' continued significance in consumer spending patterns. Government attempts to promote cashless payments increase credit card usage, which aligns with broader efforts to modernise payment infrastructure and improve financial inclusion. Despite the numerous benefits of credit card use, the sector faces problems as alternative payment methods, such as mobile wallets, become more competitive. The temptation of ease and the risk of overspending remain major concerns, needing careful financial management and regulatory control. In this regard, the UAE Central Bank regulates the credit card market with an emphasis on protecting consumer interests and ensuring financial stability. Regulatory measures prioritise openness, data security, and responsible lending practices, demonstrating a commitment to building a strong and trustworthy financial environment.

Card transactions are increasing as the e-commerce and travel & tourism sectors expand significantly. The Dubai Expo 2020, held in 2021, demonstrated the UAE's modern financial infrastructure. These events demonstrated the country's preparedness to accept digital transactions and the significance of secure and efficient payment systems in supporting economic activity. The increase in e-commerce and travel activities emphasises the need for strong payment solutions to suit the changing demands of both consumers and enterprises. Credit cards in the UAE cater to a wide range of markets, including mass-market, premium, and Islamic finance-compliant cards. Each segment provides varied advantages, annual fees, and interest rates based on the unique needs and preferences of each customer profile. However, acquiring precise data on typical transaction values remains difficult, confounding pricing and segmentation attempts. Nonetheless, card issuers use advanced analytics and market research to optimise pricing and segmentation strategies, ensuring their competitiveness in the UAE's evolving financial scene.

The United Arab Emirates (UAE) stands out in the Gulf Cooperation Council (GCC) region for its mature and well-developed credit card market, which outperforms its neighbours in terms of sophistication and acceptance. With a strong financial infrastructure and a populace used to digital payments, the UAE has emerged as a credit card usage leader. This advantage has been built up over years of investment in banking and financial services, aided by a growing economy and a populace with high discretionary incomes. As a result, credit card use has been firmly established in the UAE's consumer culture, facilitating smooth transactions and propelling economic growth. In contrast, Saudi Arabia is rapidly closing the gap with the UAE, thanks to considerable expenditures in improving its digital payment infrastructure. Recognizing the necessity of keeping up with technological changes, Saudi Arabia has launched ambitious projects to upgrade its payment systems, aiming to meet the changing needs of both consumers and companies. These investments represent a determined effort to catch up to the UAE's established position in the credit card market, using digital innovation to promote financial inclusion and economic development.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation



By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.