Financial

THE PATH TO BEING CASHLESS: MOBILE MONEY & DIGITAL PAYMENTS

Published

1 year ago

July 1, 2024

The Q&A session provides a comprehensive exploration of the digital payment industry’s transformative role, from enhancing financial inclusion to addressing data privacy concerns and predicting future trends. Eric Karobia, CEO of Whizmo offers valuable insights into the driving forces propelling the shift towards digital payments, the challenges and opportunities that lie ahead, and the essential strastegies required to fully harness the potential of digital finance and inclusion.

How do you perceive the digital payment industry’s role in enhancing access to digital technologies and fostering increased consumer spending in this region?

By introducing innovative business models that prioritize transaction volume over the holding of funds, the industry fills critical market gaps and addresses longstanding pain points for consumers and businesses alike. Mobile money wallets and near real-time remittances stand at the forefront of this financial revolution. These platforms not only offer unmatched convenience and flexibility but also play a crucial role in promoting financial inclusion among the unbanked and underserved populations. The transition from cash to digital payment methods mitigates traditional friction points associated with cash transactions—such as the inconvenience of carrying cash, reliance on ATMs, and the hassle of securing exact change. Over half of the UAE’s consumers currently use digital wallets for their transactions. Furthermore, the ability to conduct transactions remotely has been a game-changer, particularly in facilitating payments during times when physical mobility is limited.

The UAE’s mobile wallet market, which was worth $3.6 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 12.12% until 2028. In regions like Dubai, where innovation in fintech is rapidly advancing, digital payments have become instrumental in driving economic growth and enhancing consumer spending, proving that secure mobile payments and mobile wallets are more than just convenience—they’re catalysts for broader economic participation and growth.

What are the main reasons consumers are increasingly switching to digital payment methods like mobile money for their day-to-day transactions?

Several compelling drivers are fuelling the increasing rate at which consumers are adopting digital payment methods – specifically, mobile money: Accessibility is the most obvious factor because it significantly lowers the barriers to financial services adoption, especially for marginalized populations like the unbanked. An essential role for technology in modern technological systems is situating the client or customer at the core of all solutions. Therefore, more people than ever before have the ability to use cutting-edge financial services systems and platforms due to financial inclusion. In addition, the high internet penetration rate in the UAE that reaches 100% has also incentivized the popularity of e-wallets. More fundamentally, the speed and efficiency of mobile money payments and transactions on platforms are significantly faster than the pace at which operations can be completed on traditional financial networks. Hence, it provides access to funds for immediate use and easier bill and payment settlement for consumers. All of that supported with the excellent convenience of modern smartphones has created a storm making mobile money usage almost universal.

Where do you see the future of digital payments and mobile money heading in the next 5 to 10 years?

Looking ahead at the next 5 to 10 years, the trajectory of digital payments and mobile money is set to dramatically transform the way financial transactions are conducted, especially in the Middle East. With an increasing number of consumers and businesses adopting these platforms, mobile money is expected to increasingly dominate the payments landscape, reducing reliance on physical cash. This evolution will be driven by several key factors. The UAE’s mobile wallet market is projected to reach a value of $6.8 billion by 2029. This growth will be driven by increased smartphone penetration and consumer demand for convenient payment options.

The continued push towards financial inclusion will see mobile money solutions reaching deeper into rural and remote areas, where traditional banking services have limited reach. This expansion will not only democratize access to financial services for the unbanked and underserved populations but also integrate them into the formal economy, allowing for greater economic participation and stability. Additionally, advancements in technology will enhance e-wallet usability and security, making mobile payments even more appealing to a wider audience. Already, 96% of UAE SMEs believe accepting new forms of payments is fundamental to their growth. As these trends converge, we will witness an accelerated movement towards a cashless society, where digital payments in Dubai and mobile wallets in the Middle East redefine financial interactions, providing a foundation for a more inclusive, efficient, and secure financial ecosystem.

Are users apprehensive about the integration of AI into payment software due to concerns surrounding data privacy and related issues?

The apprehension among users regarding the integration of AI into payment software is primarily fuelled by concerns related to data privacy and the security of their personal information. Despite these concerns, it’s crucial to recognize the transformative potential that AI integration holds for the digital payments industry. Regulatory reforms, particularly those that have been implemented in the UAE, are instrumental in creating a favourable environment that encourages innovation in mobile money solutions. These reforms not only facilitate the entry of new players into the market but also ensure that the ecosystem evolves in a manner that is both secure and beneficial for the users. However, the key to gaining widespread customer trust in AI-powered payment systems lies in ensuring that the technology matures enough to enable the execution of AI models directly on the device. This approach significantly reduces latency and bolsters security measures, which are critical in alleviating user concerns. For AI integration to be embraced by customers within payment systems, it’s imperative that we prioritize the development of safe digital wallet apps with enhanced e-wallet usability. By executing AI models on-device, we can offer users a seamless and secure experience, thereby fostering trust in digital payments. This strategy is particularly important in regions like Dubai and the broader Middle East, where digital payments are on the rise.

What strategies are essential for educating consumers about the benefits and use of digital payments to encourage wider adoption?

To effectively educate consumers about the myriad benefits and uses of digital payments, thereby encouraging their broader acceptance and adoption, requires a comprehensive and nuanced approach. Its essential attribute is elemental communication that clearly and engagingly outlines the core supremacy of digital payments – primarily, their convenience and lack of such difficulties related to their application as theft or necessity of precise change. It should also be underlined that for the groups overwhelmingly represented by the unbanked and marginally served populations, digital payments might be portrayed as a pathway to financial inclusion. At the same time, such groups often do not have a bank account due to a variety of barriers. However, mobile wallets in the Middle East offer a practical solution by providing an accessible platform for managing finances, making payments, and receiving funds without the need for a bank account.

Highlighting case studies or success stories of individuals who have significantly benefited from the adoption of digital payments can serve as powerful testimonials, further encouraging wider acceptance among these demographics. Ultimately, enhancing e-wallet usability and ensuring that digital payment platforms are user[1]friendly and intuitive can play a significant role in driving adoption. Simplifying the user experience for conducting online transactions, alongside providing comprehensive customer support and educational resources, can demystify digital payments for the average consumer, making the transition from cash to digital more appealing.

Digital payments have the potential to enhance financial inclusion. What steps do you think need to be taken to realize this potential fully?

Realizing the full potential of digital payments in enhancing financial inclusion requires a multifaceted approach. Firstly, it is essential to identify and address the key reasons or hurdles that have contributed to the exclusion of certain segments of the population by traditional players. This involves understanding these barriers and devising flexible business models that can effectively serve the excluded populace. Additionally, regulatory frameworks need to adapt to the evolving landscape, imbuing flexibility to enable efficient and profitable servicing of underserved customers.

By addressing these challenges and fostering an environment conducive to inclusion, digital payments can play a transformative role in expanding financial access and empowering marginalized communities. The UAE has the highest financial inclusion rate in the Middle East at 46%, striving to improve that by the day. By addressing the specific needs and concerns of the unbanked and underserved populations, and offering secure, user-friendly digital payment options, we can drive wider adoption of these technologies. This approach will not only promote financial inclusion by providing access to essential banking services for all but also lay the foundation for a robust digital economy in regions like the Middle East, where the potential for growth in digital payments remains vast.

Financial

Reimagining Banking: Unlocking Endless Potential and Unlimited Growth in the Middle East

Published

4 days ago

October 7, 2025

Integrator Web-Editor

By Keith Redding, Chief Revenue Officer, Universal Banking at Finastra

Reimagining banking in the Middle East is redefining how financial institutions grow, engage, and innovate. As digital transformation accelerates, banks must evolve to deliver seamless, secure, and personalized experiences that meet rising customer expectations.

Across the UAE and Saudi Arabia, adoption of digital banking continues to surge. According to Capco’s “Bank of the Future” survey, 89% of UAE customers have become more confident using mobile banking services, while 83% now access them primarily via mobile apps. Similarly, Saudi Arabia expects online banking penetration to grow by over 16 percentage points between 2024 and 2029, underscoring the region’s momentum toward smarter, connected financial ecosystems.

Reimagining Banking Middle East with Data and Analytics

Data has become the new cornerstone of success. Through AI, analytics, and machine learning, banks can decode customer behaviour and anticipate needs more precisely than ever. As a result, they can personalize offerings, boost retention, and reduce friction across the customer journey.

A clear example of this transformation is Riyad Bank’s Centre of Intelligence (COI) — Saudi Arabia’s first AI-focused banking hub — which enhances operational efficiency while driving innovation in customer engagement.

By reimagining banking in the Middle East with data-driven strategies, institutions can align financial products with real-time insights and deliver experiences that feel intuitive, predictive, and human.

Hyper-Personalization and Omnichannel Growth

Customers today interact through multiple touchpoints — mobile apps, websites, and physical branches — expecting consistent, personalized service. Therefore, delivering a seamless omnichannel experience has become the foundation of loyalty.

In the UAE, 70% of consumers are willing to share personal data for tailored experiences, while in Saudi Arabia, the number climbs to 71%. This readiness empowers banks to use analytics ethically and transparently, transforming everyday banking into relationship-driven engagement.

Digital Sales Outreach and New Engagement Models

Digital outreach is not an option — it’s essential. Mobile-first strategies, social media engagement, and AI-driven marketing are now central to how banks connect with customers.

Take D360 Bank, one of Saudi Arabia’s first digital-only institutions. It attracted over 600,000 customers within two months of launch, proving that mobile-first banking can scale fast when powered by user-centric design.

Ecosystem Collaboration: Powering Innovation in the Middle East

Another major force reimagining banking in the Middle East is ecosystem collaboration. By partnering with fintechs, big tech firms, and infrastructure providers, banks can expand capabilities faster than ever before.

Globally, fintech startups have surged from 12,000 in 2020 to nearly 30,000 in 2024. The Dubai International Financial Centre (DIFC) now hosts over 1,000 fintech firms, while Saudi Arabia’s fintech ecosystem has more than doubled within a year. This growth underscores the importance of collaboration as a driver of agility and innovation.

Such partnerships empower banks to deploy advanced solutions like AI-powered risk scoring, embedded finance, and real-time payments — all while ensuring compliance with regional and global standards.

Looking Ahead: Building a Future-Ready Financial Ecosystem

The future of reimagining banking in the Middle East lies in intelligent, insight-led operations. Automated recommendations, predictive support, and AI-driven decision-making will soon define how banks engage customers.

Forward-thinking institutions in the UAE are already adopting AI-assisted frameworks that streamline service and elevate the customer experience. In Saudi Arabia, agile innovation models like Alinma Bank’s digital factory accelerate product launches and improve customer alignment.

As the region continues to evolve, banks that combine innovation, collaboration, and customer-centric transformation will achieve sustainable growth and long-term market leadership.

Check this out UAE Crypto Regulation Sets Global Blueprint

Financial

UAE Crypto Regulation Sets Global Blueprint

Published

4 days ago

October 7, 2025

Integrator Web-Editor

By Karl Naïm, Group Chief Commercial Officer, XBTO

The UAE has evolved from a crypto sandbox to a global model for digital asset regulation, demonstrating how policy clarity, investor protection, and innovation can coexist. Once a regional testing ground, the nation now leads in tokenization, blockchain adoption, and institutional-grade compliance — setting a framework others are eager to emulate.

Institutions Move from Observation to Adoption

Over the last two years, institutional investors — from sovereign funds to global asset managers — have shifted from cautious exploration to structured allocations in digital assets. Yet, these investors only engage when they see robust regulatory infrastructure.
Here, UAE crypto regulation stands apart. While the U.S. remains divided over jurisdictional control and Europe’s MiCA awaits full rollout, the UAE offers a complete ecosystem where policy meets execution. This maturity has transformed the country into a trusted base for large-scale blockchain initiatives.

Two Regulatory Paths, One Unified Objective

The UAE’s approach balances innovation and oversight through two distinct yet aligned regulatory arms.

Abu Dhabi Global Market (ADGM): Through the Financial Services Regulatory Authority (FSRA), it licenses custody, tokenization, and brokerage activities under strict governance criteria.
Dubai’s Virtual Assets Regulatory Authority (VARA): Instead of classifying asset types, VARA regulates activities, giving firms flexibility to innovate without restarting their licensing process.

This dual model ensures both stability and adaptability — a rare equilibrium that reinforces confidence among enterprises and investors.

Tokenization Moves from Pilot to Production

In 2023, Neovision and Realize launched one of the first tokenized U.S. Treasury funds under ADGM’s oversight, now part of a market valued at over $2.4 billion. Soon after, HSBC piloted tokenized gold settlement in the Emirates, leveraging the UAE’s mature legal and technical infrastructure.
Unlike most markets, where tokenization remains conceptual, the UAE has operationalized it across corporate bonds, commodities, and private equity. This tangible progress makes UAE crypto regulation a benchmark for turning blockchain theory into enterprise-scale reality.

Proven Resilience Through Market Turbulence

The UAE’s frameworks were tested during the 2022 digital asset downturn. While some regions froze licensing or enforcement, VARA introduced stricter custodial and marketing rules while continuing to issue licenses transparently.
In 2024, both VARA and ADGM demonstrated accountability by penalizing unlicensed operators and enforcing compliance — signaling a regulatory environment that values both innovation and discipline.

Blockchain Beyond Finance

Beyond crypto trading and tokenization, the UAE is using blockchain to drive cross-sector innovation.

Ras Al Khaimah has built a dedicated Web3 zone for decentralized applications.
Sharjah is piloting blockchain in public services, from identity to supply chain tracking.
This diversification proves the national model’s flexibility and depth, blending economic and civic value under a unified UAE crypto regulation framework.

Geography Meets Governance

Situated between Asia and Europe, the UAE benefits from time-zone overlap, U.S. dollar settlement, and investor-friendly tax structures. Yet its real advantage lies in policy precision. Since 2023, VARA has issued frequent updates and consultative papers, responding dynamically to industry input.
Following its removal from the FATF grey list in 2024, the UAE has accelerated compliance reforms faster than most peers, turning global scrutiny into strategic progress.

A Replicable Blueprint for the World

While the U.S. debates regulatory ownership and Europe await MiCA’s maturity, the UAE has implemented a live, multi-emirate framework. It balances openness with oversight — a model now studied by global policymakers.
For institutional investors, the question has shifted from if to were. Increasingly, the answer is clear: the UAE — where crypto regulation is no longer an experiment, but the emerging global standard.

Read our previous post, UAE Depreciation Rules Boost Real Estate Investment

Financial

UAE Depreciation Rules Boost Real Estate Investment

Published

4 days ago

October 7, 2025

Integrator Web-Editor

By Shabbir Moonim, CFO, The Continental Group

Shabbir Moonim,Chief Financial Officer at The Continental Group. — **Shabbir Moonim**

A Sharper Edge for UAE Property Depreciation Investors

The UAE property depreciation is reshaping how businesses and family offices view property as an investment. Real estate has always anchored wealth and stability, but its treatment within corporate tax frameworks now determines how effectively it performs over time.

The latest guidance allows depreciation deductions on properties valued at fair market value, adding a layer of fiscal precision. Companies choosing the realization basis—deferring tax until sale—can now claim an annual deduction of up to 4 percent on the property’s original cost or written-down tax value. This refinement strengthens property’s role inside long-term, tax-efficient portfolios.

How Depreciation Boosts UAE Property Cash Flow

Investment success depends not only on appreciation but also on liquidity and reinvestment power. Depreciation lowers taxable income, improving post-tax returns for assets that are typically illiquid.

For structured property holders, claiming depreciation under fair-value accounting boosts internal yield and aligns property with other income-producing assets. Even at a modest 4 percent, the deduction releases capital that can be reallocated or retained, enhancing overall portfolio efficiency.

Moreover, this recurring offset stabilizes cash flows, giving investors predictable returns that complement the long-term nature of property ownership.

Aligning UAE Property Depreciation with Tax Efficiency

Previously, owners had to choose between fair-value accounting and depreciation benefits. Businesses valuing properties at market rates lost tax deductions, while those using historical cost models retained them. The new UAE depreciation rules remove this compromise.

Now, companies can maintain up-to-date valuations and still claim depreciation, ensuring transparency and consistency. This alignment allows property to compete directly with other investment classes, from private equity to listed securities, on a balanced tax basis.

Consequently, financial planners can make clearer, data-driven decisions about capital allocation and portfolio composition.

Small Rule, Big Impact on UAE Property Investment

While no single regulation redefines real-estate logic, subtle fiscal changes can transform investment behavior. This policy turns property from a passive holding into an active component of strategic capital management.

It also reflects the UAE’s commitment to predictable, rules-based governance that supports investment without distorting markets. For business owners and families planning across generations, this stability builds confidence and encourages long-term commitment to the country’s economy.

Ultimately, the UAE depreciation rules help transform real estate from a static asset into a dynamic tool for tax optimization and sustainable growth.

A Foundation for Smarter Real Estate Portfolios

These reforms make it easier to incorporate real estate within diversified investment portfolios. They support businesses in balancing cash flow needs, compliance requirements, and performance targets.

For investors, the message is clear: property can now compete with other asset classes not only on returns but also on efficiency and resilience. The UAE continues to build a financial landscape where predictability and innovation work hand in hand.

About the Author

Shabbir Moonim is the Chief Financial Officer at The Continental Group, with over 25 years of experience in finance, strategy, and governance. He aligns financial operations with enterprise growth, oversees risk management and treasury, and drives regulatory readiness and data-driven decision-making across the organization.

About The Continental Group

Founded in 1994 by Ashok Sardana, The Continental Group is a leading insurance and financial services provider licensed by the UAE Insurance Authority, SCA, and DFSA. With over 250 professionals operating across Europe, the Middle East, and Asia, the Group offers customized solutions in investments, wealth management, succession planning, and insurance. Its core values — integrity, insight, and innovation — continue to drive client trust and long-term financial well-being.

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