Dubai unveiled a new strategy on Wednesday aimed at making 90 per cent of all transactions cashless by 2026, as the emirate seeks to solidify its standing as one of the world’s top digital cities.
The move is part of the Dubai Cashless Strategy announced by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, on October 1 as part of a series of measures to bolster long-term growth.
The strategy will be undertaken by Digital Dubai, launched in 2021 to digitise life in the emirate. It is projected to boost the economy by more than Dh8 billion ($2.17 billion) annually through the development of innovative financial technology services and the accelerated growth of Dubai’s FinTech sector, the Dubai Media Office said.
The initiative seeks to enable seamless and secure digital payment solutions across both government and private sectors, the media office said. The initiative aligns with the objectives of the Dubai Economic Agenda (D33), it added.
“About 97 per cent of Dubai government transactions in 2023 were digital,” said Abdulrahman Al Saleh, director general of Dubai's Department of Finance.
“The Dubai Cashless Strategy is based on three axes: digital governance, financial technology and digital innovation, and society.”
More than half of consumers in the UAE said they plan to be cashless by 2024 compared with the global average of 41 per cent, according to a survey by Visa in 2022. The Covid-19 pandemic, which aided the shift to online payments and shopping in the UAE, led to permanent changes in habits, the survey found.
The Cashless Countries report by UK-based price comparison website money.co.uk found that the UAE is likely to become the first cashless country in the Middle East, with 83 per cent of its population owning a debit card and four major e-wallet providers in operation.
The 2021 report ranked the Emirates as the eighth-most cashless society in the world.
Innovations in digital payments are central to the Dubai Cashless Strategy, which encourages the use of artificial intelligence and machine learning to ensure payments are fast and secure, the media office said.
Contactless payment technology and smart device payments are expected to make the process easier for users.
“This strategy aims to digitise life across various sectors, particularly the digital economy, a key pillar of the Dubai Economic Agenda D33, seeking to boost the emirate’s digital economy by over Dh100 billion,” said Hamad Al Mansoori, director general of Digital Dubai.
“Dubai’s success in this approach is supported by its well-established digital lifestyle, especially in payment systems, whether via mobile phone, card or contactless methods.”
The choice of different digital payment solutions will mean better returns for customers and service providers, the strategy said. For merchants, it will mean a gradual reduction in digital payment fees over the next four years, it added.
The strategy focuses on further innovation in the FinTech sector, attracting investment and accelerating the growth of digital financial services, the media office said.
It aims for ease and security in digital payments and the flexibility to choose from a range of options. It calls for digital payments to be accepted in all shops and other points of sale in Dubai, the media office added.
