Mastercard’s Vision for a Digital and Green Economy in the UAE
The surge in digital payment adoption has been remarkable, with Mastercard data highlighting a swift rise in new payment methodologies.
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The total expenditure through international cards in the UAE saw an increase exceeding 25% over the course of 2023. J.K. Khalil, the General Manager for MENA East at Mastercard, observed that digital payments have been witnessing substantial growth within the UAE, with a growing number of users and businesses preferring them over traditional cash transactions due to their enhanced convenience and security levels. Additionally, Khalil pointed out the essential role of international card expenditures in both the UAE and GCC regions in facilitating the recovery of the travel industry.
The Expanding Scene of Digital Payments
The volume and value of transactions via card and digital payment methods across the Middle East and North Africa have experienced a significant uptick, with a 20% increase in value and a surge of over 50% in transaction volume. This marks a notable shift towards digital payments for daily expenditures.
Khalil attributes this growth to the consumer demand for speed, convenience, and security, which are the primary motivators behind the expansion of digital payment systems. He reinforced Mastercard’s dedication to refining transaction processes and boosting payment efficiency across the region through strategic partnerships and comprehensive digital payment solutions.
Insights from Mastercard’s payment index reveal an impressive adoption rate of innovative payment methods, with 85% of people in the region and 88% in the UAE adopting new payment technologies such as mobile contactless payments, “buy now, pay later” options, cryptocurrencies, and wearable devices.
Furthermore, Khalil highlighted the growth in cross-border payments, especially significant in connecting expatriates with their home countries, a crucial factor in regions with large expatriate communities like the GCC.
According to Mastercard’s 2023 cross-border payments report, 48% of UAE residents expect an increase in cross-border transactions in the next 12 months, with 36% anticipating receiving more international payments within the same timeframe. Khalil reiterated Mastercard’s commitment to supporting communities with safe, convenient, and efficient international money transfer methods at reasonable costs, with services reaching over 180 countries and covering more than 90% of the world’s banked population.
Khalil also emphasized Mastercard’s focus on financial inclusion, aiming to integrate one billion individuals and 50 million micro, small, and medium-sized enterprises (MSMEs) into the digital economy by 2025.
Mastercard is set on providing the necessary digital support for small businesses to flourish in the digital economy, offering customized payment solutions to help startups and SMEs execute secure, quick transactions and expand their customer reach.
He also mentioned Mastercard’s “Sustainable Cards Pledge” introduced at COP28 in the UAE, aiming for a transition to sustainable card materials by 2025. This initiative saw immediate support from over ten financial institutions, positioning the UAE as a leader in sustainable card adoption, ahead of Mastercard’s global 2028 target.
A study by Mastercard indicated a growing emphasis on sustainability among Middle Eastern consumers, with a vast majority ready to act on environmental concerns, signaling a shift towards supporting brands with strong commitments to environmental sustainability.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
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