By Shona Sabah (Senior Manager - Strategic Growth Lead)
This article provides an insight-led, narrative overview of the GCC payments market, with a specific focus on the UAE and Saudi Arabia - the two countries shaping regional momentum. It explains the regulatory frameworks, digitalisation programmes, consumer trends, competitive dynamics, and emerging payment technologies that are redefining the Middle East payments landscape.
The GCC is one of the worldâs fastest-modernising payments regions, driven by government ambition, rapid digital adoption, and strong consumer readiness.
The Gulf Cooperation Council (GCC), comprising the United Arab Emirates (UAE), Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, has emerged as one of the worldâs most dynamic regions for payments innovation.
While smaller than global regions such as APAC or North America, the GCC stands out for its rapid digital payments adoption, ambitious government-led transformation programmes, and strong consumer readiness for new payment technologies.
For banks and payment providers, understanding the GCC payments landscape is increasingly critical. The region is moving quickly toward a cashless future, scaling real-time payments infrastructure, mandating e-invoicing, and opening the door to open banking and new digital wallets.
Digital payments in the GCC are scaling rapidly as government policy, consumer adoption, and merchant transformation reinforce one another.
The GCC payments market is experiencing sustained, high-velocity growth, driven by digitalisation agendas, fintech ecosystem expansion, and changing consumer expectations. The total value of digital payments in the GCC is projected to reach $227 billion by 2025, increasing at a CAGR of nearly 10% through 2030, when it is expected to exceed $360 billion1.
This rapid growth is underpinned by three reinforcing factors:
Governments across the GCC view payments modernisation as foundational to economic diversification. National cashless strategies, data frameworks, and unified payment systems create an environment where digital solutions scale quickly and consistently.
The GCC has one of the worldâs youngest and most digitally engaged populations. Consumers are eager adopters of contactless payments, digital wallets, instant payments, and BNPL, making the region a fertile testbed for new financial experiences.
Merchants across the GCC, from micro-retailers to large conglomerates, are accelerating their payment capabilities. E-commerce penetration continues to rise, and expectations for seamless, secure, and multi-method payment experiences are stronger than ever.
Although digital adoption is high, the transition is uneven across markets. Credit cards dominate the UAE and Saudi Arabia, while debit cards and cash remain more significant in Kuwait, Qatar, and Oman. E-wallet penetration is rising but varies widely. These nuances create a landscape where providers must localise solutions to consumer, regulatory, and infrastructure realities.
The UAE and Saudi Arabia are the GCCâs payments engines, shaping regulation, innovation, and market momentum for the wider region.
While every GCC country has a role to play in the regionâs payments evolution, the UAE and Saudi Arabia stand out as the primary engines of innovation.
Together, they account for the largest consumer bases, transaction volumes, and regulatory sophistication in the region. Both have governments that view payments as strategic enablers of broader digital transformation, with policies designed to attract international players while fostering local competition.
Their approaches differ in structure but share the same ambition: to build world-class digital payment ecosystems that are secure, interoperable, and accessible. By examining these two markets in depth, we can better understand the blueprint driving growth across the GCC.
The United Arab Emirates (UAE) has established one of the most progressive and innovation-oriented payments environments in the world.
The UAE Central Bank and the countryâs freezone regulators (DIFC and ADGM) have collectively created a regulatory environment focused on harmonisation, interoperability, and digital-first financial services. Targets are bold, including the aim for 90% of all transactions to be digital by 2026 â driven by initiatives such as:
The outcome is a balanced, opportunity-rich market â one where both established players and new entrants can scale, provided they align closely with regulatory goals and compliance requirements.
The UAE payments market features a diverse mix of players:
This combination of regulatory alignment, competition, and collaboration is creating a fertile ecosystem where innovation is not only encouraged but actively enabled. For international entrants, partnership is the route to scale as those who connect their technology and expertise with local infrastructure and institutions are best placed to succeed.
Several trends define the current UAE payments trajectory:
The UAE is likely to lead in areas such as wallet interoperability, cross-border payments, open finance, digital identity verification, and embedded financial experiences. For payment providers, the most significant opportunities lie in e-commerce enablement, digital onboarding, and data-driven merchant services.
If the UAEâs progress is fuelled by experimentation and collaboration, Saudi Arabiaâs transformation is driven by structure and scale.
Saudi Arabiaâs payments evolution is shaped by Vision 2030, a national programme under the guidance of Saudi Central Bank (SAMA) that positions digital payments as central to economic modernisation. Key components include:
Together, these policies create a market that is secure, predictable, and scalable, which is highly attractive for both domestic and international players looking to grow sustainably.
Saudi Arabiaâs payments ecosystem unites:
This blend of local strength, fintech innovation, and international infrastructure makes Saudi Arabia a complex but well-structured market, with ample space for collaboration and growth.
Several trends are defining Saudi Arabiaâs payments shift:
Saudi Arabia is positioned to lead the GCC in real-time payments, unified payment rails, large-scale merchant digitalisation, and national digital identity-driven payment experiences. Providers entering the market must localise solutions, meet strict licensing expectations, and integrate seamlessly with MADA and SAMA frameworks.
The GCC is transitioning quickly toward completely digital, interoperable, and instant payment ecosystems. Across the UAE and Saudi Arabia, the direction of travel is clear:
For payment providers, success in the Middle East requires regulatory understanding, local partnerships, culturally aligned go-to-market strategies, and a commitment to solving merchant and consumer pain points with insight-led, adaptable solutions.
If youâre exploring opportunities to enter or expand within the GCC payments ecosystem â or any other region - and want to understand local consumer behaviour and regulatory frameworks in more depth, weâd be happy to help. Connect with Shona Sabah on LinkedIn or book a call today to discuss how we can support your growth strategy.