Major Trends Driving Transformation in the Middle East’s Digital Payment Landscape

Major Trends Driving Transformation in the Middle East’s Digital Payment Landscape

In the Middle East, the digital payment landscape is changing at a rapid pace, shaped by the advent of instant payments, booming adoption of new payment methods and the rise of online retail, a new whitepaper produced by Euromonitor International (EMI) and Sixth Factor Consulting, and sponsored by Amazon Payment Services, says.

Titled “What’s next for Digital Payments in the Middle East” and released in February, the paper takes a deep dive into the Middle East’s digital payment ecosystem, exploring the key themes and trends emerging the region’s payment landscape.

Looking at the three largest digital payment markets in the region specificially, data show that the digital payment markets of the United Arab Emirates (UAE), Saudi Arabia and Egypt have risen steadily over the past few years, a growth that’s been driven by rising Internet penetration, favorable demographics, strong economic growth and a booming fintech sector, the report says.

Between 2021 and 2023, the digital payment sector in Egypt, the UAE and Saudi Arabia rose by estimated compound annual growth rates (CAGRs) of 19.6%, 18.6% and 13.6%, respectively.

Consumer food services (37.4% CAGR), travel intermediaries (33.6%) and insurance (29.1%) drove most of that growth in Egypt, achieving the highest growth rates. In the UAE,