Middle East payments at a glance: from cash to digital wallets

The payments ecosystem in the Middle East is undergoing rapid change, with traditional cash dependency coexisting with digital innovation. Here's a professional breakdown:

  1. Legacy of the cash economy
  • Gulf countries' share of cash transactions still reaches 351 TP3T (Saudi Central Bank 2022 data)
  • Surge in cash use during religious festivals (e.g., Eid al-Fitr monetary gift tradition)
  • Cross-border labour remittances still prefer physical outlets (Western Union/Hui Yip Bank have 70% market share)

  1. Differences in bank card penetration
  • Credit card penetration in GCC countries 62% vs Yemen less than 15%
  • Mada Card (Saudi Arabia) annual volume growth of 41% (2023 stats)
  • Highest card holdings per capita in UAE GCC (2.8 cards per person)

  1. Islamic Finance Compliance Programme
  • Sharia-compliant credit card annual growth rate of 18% (Dubai IFC data)

  1. Islamic finance compliance programme (continued)
  • Interest-free instalment payments: BNPL platforms such as Tamara (Saudi Arabia), Tabby (UAE), etc. grew annual trading volume by 300% (2023 data), strictly following the profit-sharing (Mudarabah) rather than interest model
  • Numbers Sukuk: UAE central bank launches blockchain sukuk settlement system in 2023, reducing single transaction costs by 40%
  • Compliance Certification: Visa/Mastercard's 30% card issued in the Middle East has been certified by the Accounting Organisation for Islamic Financial Institutions (AAOIFI)

  1. Explosive growth in mobile payments
  • STC Pay users top 8 million out of 17 digital wallets licensed by Saudi SAMA (46% of adult population)
  • Fawry Egypt's 120 million monthly transactions cover 95% market share in utility bill payments
  • Special Scenario Application: MezaPay Provides Hajj Pilgrims with Contactless Payments within the confines of Makkah's Forbidden Mosque

  1. Cross-border payment innovation
  • UAE's Al Etihad Payments interconnects with India's UPI, reducing expat remittance time from 2 days to 90 seconds
  • RippleNet's MENA Corridor Transaction Volume Processed in Dubai International Financial Centre Grows 217% Annually

  1. Government digitisation drive