Dubai has announced an ambitious city-wide plan to transition towards a fully digital payments ecosystem, aiming to phase out physical notes and coins across all government and private sectors. The initiative, spearheaded by the Dubai Finance Department, sets a target for cashless transactions to constitute 90% of all payments by the end of 2026.
This strategic shift away from physical currency is expected to deliver significant economic benefits, with projections suggesting a potential boost to economic growth of over AED 8 billion annually.
A Multi-Billion Dirham Economic Vision
First unveiled in October 2024 during a meeting chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, the Cashless Dubai Strategy is a core component of the emirate’s vision to become one of the top five cashless cities in the world.
The move to digital payments is not about eliminating money but rather modernising the transaction process. Banking apps, credit cards, and innovative fintech solutions will become the primary methods for all payments, offering greater convenience and efficiency for consumers, merchants, and payment service providers.
Strategic Partnerships to Drive Adoption
To achieve its goal, Dubai Finance is building a network of strategic collaborations. An early Memorandum of Understanding (MOU) with the General Directorate of Identity and Foreigners Affairs (GDRFA) aims to expand secure digital payment channels for government services.
More recently, a collaboration with Network International is set to introduce innovative fintech solutions to the public, simplifying the payment experience for all users. In early 2025, an agreement with the Dubai International Financial Centre (DIFC) was established to lead specialised workshops designed to help businesses successfully adopt digital payment systems.
Fostering Innovation in Digital Payments
The strategy places a strong emphasis on leveraging cutting-edge technology to create a diverse and user-friendly payments landscape. AI-driven solutions and contactless technologies are central to this push, providing a broader range of payment options for both residents and visitors.
The workshops led by DIFC and Dubai Finance will also focus on bringing AI-powered initiatives to the forefront, ensuring the benefits of this digital transformation are felt by workers, tourists, and the wider community. A comprehensive awareness and promotional campaign is already underway to educate the public and drive the widespread adoption of these new technologies.
About The Cashless Dubai Strategy
The Cashless Dubai Strategy is a government-led initiative designed to transform Dubai into a leading global cashless society. Its primary objective is to achieve 90% digital transactions across both public and private sectors by 2026. By phasing out physical cash in favour of secure and efficient digital payments, the strategy aims to boost economic growth, enhance convenience for residents and tourists, and solidify Dubai’s position as a global hub for financial technology and innovation.
Source: Fintech News Middle East
