Payments industry revenue in the UAE is expected to grow to $18.7 billion by 2031, driven by the young and tech-savvy population in the Arab world’s second-largest economy, according to a new report by the Boston Consulting Group.
Revenues are expected to grow at a compound annual rate of 7.7 per cent between 2021 and 2031, BCG said in its Global Payments 2022: The New Growth Game report on Tuesday.
Revenues from credit cards, debit cards and current accounts, in particular, will drive the industry’s growth over the 10-year period.
“The UAE continues to see robust growth in payments and FinTech activity,” Mohammad Khan, managing director and partner at BCG, said.
“A combination of drivers — such as the country’s young, tech-savvy and fast-growing population, the nation's bid to become a crypto and FinTech hub, and the planned launch of a domestic payments scheme are resulting in greater competition and paving the way for future growth.”
Digitisation of the payments industry and the development of a FinTech ecosystem are among the priorities for the UAE, which is charting the road map for the future economy and the next 50 years of its development.
This year alone, several digital banks, as well as specialised payments players, have launched in the UAE as the government incentivises the development of the payments industry.
The FinTech industry has also received increasing attention from venture capital firms. Funding for start-ups in the Middle East and North Africa rose 20 per cent annually to more than $2.3bn in the first three quarters of 2022, according to a Magnitt study.
A combination of drivers — such as the country’s young, tech-savvy and fast-growing population, the nation's bid to become a crypto and FinTech hub, and the planned launch of a domestic payments scheme are resulting in greater competition and paving the way for future growth
Mohammad Khan,
managing director and partner at BCG
FinTech remained the leading industry during the period, with 94 deals valued at $747m, which is an annual increase of almost three quarters, it added.
Mena FinTech companies that headlined fundraising were the UAE’s Tabby with $150m, Saudi Arabia's Tamara with $100m and Senegal’s Wave Mobile Money with $91.6m.
“Cross-industry participation in digital payments will [also] provide an added impetus to the region's already burgeoning sector,” Mr Khan said.
BCG said four trends are shaping the outlook of the global payments industry and will also drive growth in the UAE over the next five years.
As the era of non-profitable growth comes to an end, payments players will have to demonstrate “solid profitability to attract customers and investors”.
“The sustained cash-to-non-cash conversion, the ongoing growth of e-commerce, and the increasing integration of payments into retail and corporate customer journeys will drive payments revenues globally,” the consultancy said.
Central bank digital currencies will continue to gain momentum as regulators keep on tailoring CBDCs to complement cash with digital central bank money, it said.
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
The five pillars of Islam
ENGLAND SQUAD
Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold
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Men's football draw
Group A: UAE, Spain, South Africa, Jamaica
Group B: Bangladesh, Serbia, Korea
Group C: Bharat, Denmark, Kenya, USA
Group D: Oman, Austria, Rwanda
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence