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Vision of Innovation Driving UAE’s Cashless Transformation

The initiative reflects Dubai’s vision to become one of the world’s top digital cities, driving an estimated Dh8b annually in economic benefits

The UAE is leading the global transition to a digital cashless society, showcasing its commitment to innovation, economic resilience, and technology transformation. At the heart of this transformation is Dubai’s ambitious Cashless Strategy, which aims to shift 90 per cent of all transactions to digital platforms by year 2026. This initiative, spearheaded by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, reflects Dubai’s vision to become one of the world’s top digital cities, driving an estimated Dh8 billion annually in economic benefits.

Central to this vision is the adoption of secure, seamless, and inclusive digital payment systems that cater to both government and private sectors. Leveraging advanced technologies like artificial intelligence and machine learning, these systems enhance speed, security, and consumer trust, ensuring a robust foundation for UAE’s evolving digital economy.

Central Bank of the UAE (CBUAE) plays a pivotal role in this transformation through initiatives like its Financial Infrastructure Transformation (FIT) Programme. This comprehensive initiative includes the introduction of a Card Domestic Scheme, an Instant Payments Platform, and a Central Bank Digital Currency (CBDC) for both domestic and cross-border use. These measures are designed to promote financial inclusion, encourage innovation, and create a cashless ecosystem that is sustainable, safe, and resilient.

By laying the groundwork for integrated digital payments, our CBUAE is setting the stage for a future where financial transactions are faster, safer, and more accessible to all segments of the society.

The benefits of a cashless economy extend beyond technological advancements. For consumers, it offers greater convenience, enhanced security, and access to cutting-edge financial tools. Businesses gain increased operational efficiency, scalability, and opportunities for economic diversification. For the nation as a whole, it cements UAE’s position as a global leader in digital finance, providing a model for other nations seeking to modernise their financial systems.

The rapid growth of digital payments in the UAE is a testament to the country’s leadership in this space. Digital payment transactions increased by 53 per cent in 2023 to reach Dh157.8 billion and are expected to grow to Dh484.4 billion by the year 2028. Moreover, over 95 per cent of transactions at leading UAE banks are now digital, and more than half of new bank accounts are opened through digital channels. These achievements highlight UAE’s ability to harness technology to redefine the financial landscape.

The recently announced Dubai’s Cashless Strategy exemplifies how ambition and collaboration can reshape economies. It is not just a financial milestone but a societal evolution that redefines how individuals, businesses, and governments interact within a digital framework. By embracing this vision, Dubai and the UAE are setting a global standard for innovation and economic growth.

This remarkable progress is underpinned by a collaborative approach that brings together regulators, banks, and FinTech companies. We, UAE Banks Federation (UBF), have been instrumental in aligning the banking sector with our nation’s ambitious goals. Through close collaboration with regulatory authorities, member banks, and FinTech innovators, UBF fosters a forward-looking financial ecosystem that champions sustainability, operational efficiency, and customer-centric innovation.

Our efforts focus on adopting global best practices and leveraging cutting-edge tools to empower individuals and businesses with smarter, faster, and more secure financial services. UBF initiatives complement the objectives of Dubai Cashless Strategy, ensuring that the banking sector remains a key enabler of UAE’s digital transformation journey.

Fraud Prevention remains a priority while digital transactions rise. UBF continues to advocate that customer awareness is the first line of defense, with some of its members leveraging technologies like AI and behavioural analytics to detect and prevent fraudulent activities in real time. Dubai Cashless Strategy is a testament to the power of ambition and collaboration. It not only redefines the financial landscape of the UAE, but also sets a global benchmark for innovation and economic growth.

As we advance towards a fully cashless society, UAE Banks Federation remains steadfast in its commitment to fostering a secure and resilient financial ecosystem. By championing education, knowledge-sharing, innovation, and collaboration, we are shaping a future that is not only cashless but also limitless in its potential — building a financial system that benefits individuals, businesses, and the economy as a whole. Together, we are redefining what is possible in the world of finance and cementing the place of the UAE as a global leader in digital excellence.

Jamal Saleh is Director-General of the UAE Banks Federation.