I recently attended an event the payments vendor Checkout.com hosted in Abu Dhabi, and I couldn’t resist the urge to share a little bit what I learned about digital commerce and payments in the United Arab Emirates (UAE). Here is some of what I learned:
The UAE has the core features that propel a digital economy. The UAE has a young population (median age is 31.2 years – versus 38.9 years in the US). It has a strong:
- Digital infrastructure. It ranks highest in the world in mobile and broadband internet speeds.
- Government backing. UAE’s “Project 2030” is a broad progress initiative which includes commerce, transportation, and payments.
- Digital payments ecosystem. Per Project 2030 goals, the UAE aims to be 75% cashless by 2026, 100% by 2031.
- AI champion in government. The UAE has the world’s first government minister for AI. His full title is Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications.
The UAE and other Gulf Cooperation Council (GCC) countries have already digitized rapidly. According to Dr. Saeeda Jaffar, SVP and Group GCC Country Manager for Visa, 70% of all commerce in the region is digital versus offline. Prior to the COVID-19 pandemic, that ratio was flipped, Jaffar noted. Jaffar explained that, “[digital commerce] has more than doubled in last five years. [It is growing] at a rate unparalleled in most other regions.” In GCC, 98% of all in-person card payments are now contactless. Consider that, per Forrester’s June 2024 Consumer Benchmark Survey, only 70% of US online adults have used their card for a contactless payment in the last three months.
It has a uniquely global population which influences commerce experiences. The UAE is a small country with population at about 10 million (similar to Portugal or Sweden or the US state of Michigan). What’s remarkable, however, is that 88% of the population is made up of immigrants or expatriates. The countries with the highest emigres to the UAE are India, Bangladesh, and Pakistan. These citizens bring their commerce habits, shopping expectations, and payments loyalties with them.
Another astounding figure: Dubai welcomed an impressive 18.7 million international visitors in 2024 (by contrast, New York City’s international travelers in 2024 numbered 13 million). Dubai-based money movement app du Pay, for example, is translated into six languages. And Dubai-based Careem, a local ride-hailing-slash-superapp, has the option to send verification codes to users via WhatsApp, versus SMS, thereby improving the chances that tourists without cellular data can register and use its services.
The digital ecosystem is a mix of global and local players. Careem gave US-based Uber a run for its money in the region before Uber acquired it (Careem still runs as a wholly owned subsidiary). Germany’s Delivery Hero acquired Kuwait-based food delivery service Talabat in 2015, which still dominates food delivery in the UAE (and a number of other countries across the region). However, UK’s Deliveroo has the exclusive for the massively viral Dubai Chocolatier FIX’s distribution (which skyrocketed to the top of Deliveroo’s 100 Report). Perhaps most famously, the government-backed messaging and communications app Botim challenges WhatsApp in the country (the government even restricted WhatsApp and other VoIP companies’ video and voice calling).
Wealth inequality is a major issue – and a purpose-driver for fintech solutions. The UAE had the most fintech startups of any other country on Forbes’ 2025 Middle East Fintech 50 List. This concentration is perhaps, in part, because of the government’s emphasis on becoming cashless, but also perhaps out of necessity. Of the 55 countries covered in the UBS 2024 Global Wealth Report, UAE ranks third highest in wealth inequality (after South Africa and Brazil, and tied with Saudi Arabia). Dubai in particular, has seen an influx of affluent immigrants, in part due to the country’s low personal tax rate. The UAE also has a large immigrant workforce, who support families in their home countries with their earnings. As such, the UAE is usually among the top ten countries for remittance origination.
As you can see, the UAE is a fascinating country and in an especially fast-paced and interesting moment in its history and development. These observations are not meant to be a comprehensive view of e-commerce in the UAE, but I hope you find them as interesting as I do!