The United Arab Emirates Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published: Jul, 2014 | Pages: 105 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)


Synopsis
The report provides top-level market analysis, information and insights on the UAE cards and payments industry, including:
Current and forecast values for each category of the UAE cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing the UAE cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by banks and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of the UAE cards and payments industry 

Summary
The UAE card payments channel grew both in terms of volume and value during the review period (2009?2013). In terms of the number of cards in circulation, the channel increased from 10.3 million in 2009 to 18.2 million in 2013, at a review-period compound annual growth rate (CAGR) of 15.31%. Over the forecast period (2014?2018), the card payments channel is anticipated to register a CAGR of 8.57%, to reach 28.4 million cards in 2018. 
In terms of transaction value, the card payments channel increased from AED226.5 billion (US$61.7 billion) in 2009 to AED487.6 billion (US$132.8 billion) in 2013, at a review-period CAGR of 21.13%. The card payments channel is anticipated to increase further from AED529.2 billion (US$144.1 billion) in 2014 to AED673.9 billion (US$183.5 billion) in 2018, at a forecast-period CAGR of 6.23%.
The UAE government's initiative to promote cashless transactions, the growing popularity of payment cards based on traditional Islamic principles, the introduction of contactless technology, and the retail, e-commerce and tourism industries growth all contributed to the expansion of the UAE card payments channel in volume and value terms during the review period.
The UAE's well-developed telecommunications infrastructure allowed it to record one of the highest mobile penetration rates in the Middle East and North Africa (MENA) region in 2013. Banks such as Dubai Islamic Bank (DIB), Emirates NBD, and Abu Dhabi Commercial Bank (ADCB) partnered with merchants and online retailers to provide secure payment facilities, enabling customers to pay via mobile phone or online. Mobile payments (m-payments) grew from AED86.2 million (US$23.5 million) in 2009 to AED1.8 billion (US$477.2 million) in 2013 at a CAGR of 112.35% and are anticipated to reach AED11.1 billion (US$3.0 billion) in 2018, at a forecast-period CAGR of 38.05%.
E-commerce is increasing as a result of improvements in telecommunication infrastructure, payment and security systems, and an increased consumer willingness to shop online. E-commerce registered a review-period CAGR of 32.71%, rising from AED5.6 billion (US$1.5 billion) in 2009 to AED17.5 billion (US$4.8 billion) in 2013.
In line with an increase in number of outbound travelers, outbound travel expenditure among the retail and corporate segments increased from AED59.8 billion (US$16.3 billion) in 2009 to AED65.0 billion (US$17.7 billion) in 2013, and is anticipated to increase further over the forecast period to reach AED99.1 billion (US$27.0 billion) in 2018, fuelling the growth of travel cards.  
Scope
 This report provides a comprehensive analysis of the UAE cards and payments industry.
It provides current values for the UAE cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting the UAE cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions. 
It profiles the major banks in the UAE cards and payments industry. 
Reason To Buy
 Make strategic business decisions using top-level historic and forecast market data related to the UAE cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within the UAE cards and payments industry.
Assess the competitive dynamics in the UAE cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in the UAE.
Gain insights into key regulations governing the UAE cards and payments industry. 
  
Key Highlights
 The UAE card payments channel grew both in terms of volume and value during the review period (2009?2013). In terms of the number of cards in circulation, the channel increased from 10.3 million in 2009 to 18.2 million in 2013, at a review-period compound annual growth rate (CAGR) of 15.31%. Over the forecast period (2014?2018), the card payments channel is anticipated to register a CAGR of 8.57%, to reach 28.4 million cards in 2018.
In terms of transaction value, the card payments channel increased from AED226.5 billion (US$61.7 billion) in 2009 to AED487.6 billion (US$132.8 billion) in 2013, at a review-period CAGR of 21.13%. The card payments channel is anticipated to increase further from AED529.2 billion (US$144.1 billion) in 2014 to AED673.9 billion (US$183.5 billion) in 2018, at a forecast-period CAGR of 6.23%.
The UAE government's initiative to promote cashless transactions, the growing popularity of payment cards based on traditional Islamic principles, the introduction of contactless technology, and the retail, e-commerce and tourism industries growth all contributed to the expansion of the UAE card payments channel in volume and value terms during the review period.
The UAE's well-developed telecommunications infrastructure allowed it to record one of the highest mobile penetration rates in the Middle East and North Africa (MENA) region in 2013. Banks such as Dubai Islamic Bank (DIB), Emirates NBD, and Abu Dhabi Commercial Bank (ADCB) partnered with merchants and online retailers to provide secure payment facilities, enabling customers to pay via mobile phone or online. Mobile payments (m-payments) grew from AED86.2 million (US$23.5 million) in 2009 to AED1.8 billion (US$477.2 million) in 2013 at a CAGR of 112.35% and are anticipated to reach AED11.1 billion (US$3.0 billion) in 2018, at a forecast-period CAGR of 38.05%.
E-commerce is increasing as a result of improvements in telecommunication infrastructure, payment and security systems, and an increased consumer willingness to shop online. E-commerce registered a review-period CAGR of 32.71%, rising from AED5.6 billion (US$1.5 billion) in 2009 to AED17.5 billion (US$4.8 billion) in 2013.
In line with an increase in number of outbound travelers, outbound travel expenditure among the retail and corporate segments increased from AED59.8 billion (US$16.3 billion) in 2009 to AED65.0 billion (US$17.7 billion) in 2013, and is anticipated to increase further over the forecast period to reach AED99.1 billion (US$27.0 billion) in 2018, fuelling the growth of travel cards.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technology
2.1.1 Rising internet penetration
2.1.2 Growing mobile payments
2.1.3 Automated teller machines (ATMs)
2.1.4 Point-of-sale (POS) termils
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Growth in e-commerce
2.2.3 E-dirham card for payment of government services
2.3 Economic Drivers
2.3.1 GDP growth
2.3.2 GDP per capita
2.3.3 Inflation
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Check payments
3.1.2 Card transactions
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Overview
4.1.2 Anti-money laundering and terrorism fincing (AML/CTF)
4.1.3 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Lost or stolen card
4.2.3 Counterfeit card fraud
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
6 Alysis of Card Payments and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size of and Forecast for the Card Payments Channel
6.2.1 Alysis by number of cards in circulation
6.2.2 Alysis by transaction value
7 Alysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Alysis by number of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Segment Size and Forecast
7.3.1 Alysis by number of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Segment Size and Forecast
7.4.1 Alysis by number of cards in circulation
7.4.2 Alysis by transaction value
7.4.3 Alysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share alysis
7.5.2 Issuer share alysis
8 Alysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Alysis by number of cards in circulation
8.1.2 Alysis by transaction value
8.1.3 Alysis by transaction volume
8.2 Transaction Share Alysis by Channel
8.2.1 Alysis by transaction value
8.2.2 Alysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share alysis
8.3.2 Issuer share alysis
9 Alysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by number of cards in circulation
9.1.2 Alysis by transaction value
9.1.3 Alysis by transaction volume
9.2 Transaction Share Alysis by Channel
9.2.1 Alysis by transaction value
9.2.2 Alysis by transaction volume
9.3 Persol Charge Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
9.3.3 Alysis by transaction volume
9.4 Commercial Charge Cards Segment Size and Forecast
9.4.1 Alysis by number of cards in circulation
9.4.2 Alysis by transaction value
9.4.3 Alysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share alysis
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by number of cards in circulation
10.1.2 Alysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Alysis by number of cards in circulation
10.2.2 Alysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Alysis by number of cards in circulation
10.3.2 Alysis by transaction value
11 Merchant Acquiring
12 Company Profiles of Card Issuers
12.1 Abu Dhabi Commercial Bank
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Dubai Islamic Bank (DIB)
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Emirates tiol Bank of Dubai
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Mashreq Bank
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 HSBC UAE
12.5.1 Key fincials
12.5.2 Card portfolio
12.5.3 Strategies
13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric's Services
13.5 Definitions
13.6 Disclaimer


List of Tables
Table 1: The UAE Payment Channels (AED Billion), 2009-2013
Table 2: Number of Foreign Banks in the UAE, 2012 and 2013
Table 3: Market Entry Strategies of Foreign Banks
Table 4: The UAE Card Fraud (AED Million), 2009-2013
Table 5: The UAE Cards for High-Income Customers
Table 6: The UAE Travel Cards
Table 7: The UAE Co-branded Cards
Table 8: The UAE Cards for Women
Table 9: The UAE Cards for Online Shoppers
Table 10: The UAE Cards Offered for Corporate Travelers
Table 11: The UAE Card Payments Channel by Card Category (Thousand), 2009-2018
Table 12: The UAE Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 13: The UAE Card Payments Channel Size by Transaction Value (AED Billion), 2009-2018
Table 14: The UAE Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 15: The UAE Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 16: The UAE Credit Cards Category Size by Transaction Value (AED Billion), 2009-2018
Table 17: The UAE Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 18: The UAE Credit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 19: The UAE Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 20: The UAE Persol Credit Cards Segment Size by Transaction Value (AED Billion), 2009-2018
Table 21: The UAE Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 22: The UAE Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 23: The UAE Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 24: The UAE Commercial Credit Cards Segment Size by Transaction Value (AED Million), 2009-2018
Table 25: The UAE Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 26: The UAE Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018
Table 27: The UAE Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 28: The UAE Debit Cards Category Size by Transaction Value (AED Billion), 2009-2018
Table 29: The UAE Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 30: The UAE Debit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 31: The UAE Charge Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 32: The UAE Charge Cards Category Size by Transaction Value (AED Million), 2009-2018
Table 33: The UAE Charge Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 34: The UAE Charge Cards Category Size by Transaction Volume (Million), 2009-2018
Table 35: The UAE Persol Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 36: The UAE Persol Charge Cards Segment Size by Transaction Value (AED Billion), 2009-2018
Table 37: The UAE Persol Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 38: The UAE Persol Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 39: The UAE Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 40: The UAE Commercial Charge Cards Segment Size by Transaction Value (AED Million), 2009-2018
Table 41: The UAE Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 42: The UAE Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009-2018
Table 43: The UAE Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018
Table 44: The UAE Prepaid Cards Category Size by Transaction Value (AED Billion), 2009-2018
Table 45: The UAE Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 46: The UAE Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 47: The UAE Open-Loop Prepaid Cards Segment Size by Transaction Value (AED Billion), 2009-2018
Table 48: The UAE Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 49: The UAE Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 50: The UAE Closed-Loop Prepaid Cards Segment Size by Transaction Value (AED Billion), 2009-2018
Table 51: The UAE Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 52: ADCB - Key Fincial Indicators (AED Million), Year Ending December, 2012-2013
Table 53: ADCB - Card Portfolio and Key Features
Table 54: DIB - Key Fincial Indicators (AED Million), Year Ending December, 2012-2013
Table 55: DIB - Card Portfolio and Key Features
Table 56: Emirates NBD - Key Fincial Indicators (AED Million), Year Ending December, 2012-2013
Table 57: Emirates NBD - Card Portfolio and Key Features
Table 58: Mashreq Bank - Key Fincial Indicators (AED Million), Year Ending December, 2012-2013
Table 59: Mashreq Bank - Card Portfolio and Key Features
Table 60: HSBC UAE - Key Fincial Indicators (US$ Million), Year Ending December, 2012-2013
Table 61: HSBC UAE - Card Portfolio and Key Features
Table 62: Key Definitions