The Road to a Fully Digital Economy

The Dubai Cashless Strategy, launched in October 2024, is reshaping the way residents, tourists, and businesses interact with money. While the concept of going cashless is not new, what makes Dubai stand out is the scale, speed, and ambition with which it is executing the vision. 

The city, already renowned for futuristic projects such as driverless taxis, AI-led policing, and innovative government services, now wants to eliminate physical cash in favor of fully digital transactions.

This transition carries enormous implications for economic growth, consumer convenience, and financial inclusion. At the same time, it raises crucial conversations about security, accessibility, and how society adapts. This article unpacks what Dubai’s cashless shift means for everyday life, business, and the city’s global positioning in the digital economy.

The Road to Becoming Cashless

The roots of Dubai’s push toward a cashless economy stretch back over a decade. The UAE has been steadily investing in financial technology (fintech) infrastructure and digital banking innovations since the early 2010s. 

The launch of DubaiPay in 2017, followed by the rollout of innovative government payment portals, marked one of the first significant steps. These platforms allowed residents to pay utility bills, parking tickets, and visa fees digitally.

Dr Aisha Bint Butti Bin Bishr

Smart Dubai’s DubaiPay, a portal for payment online and via smartphones, has registered a 15% increase in the amounts collected between June 1, 2016, and June 1, 2017, and a surge of 13% in the number of transactions carried out over the same period.

On the other hand, the number of corporate and individual users that the DubaiPay portal managed to attract exceeded all expectations, generating Dh12 billion through more than 10 million transactions.

By 2020, the COVID-19 pandemic accelerated digital adoption worldwide, pushing businesses and consumers to embrace contactless and cashless solutions out of both necessity and convenience. 

According to the World Bank’s Group Database 2021, Two-thirds of adults worldwide made or received a digital payment, with the share in developing economies growing from 35% in 2014 to 57% in 2021. In developing economies, 71% had an account at a bank during the pandemic, with the MENA region showing some of the fastest rates of growth.

Dubai’s leadership recognized the moment. In October 2024, under the guidance of Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Executive Council announced the Dubai Cashless Strategy 2024 – 2026. Its primary objective is to phase out coins and notes and ensure that all financial transactions are executed through digital channels in both government and private sectors, to 90% of all transactions, aiming for complete digital enablement at 100% across the emirate by the conclusion of next year, 2026.

This national-level backing made Dubai the first city in the Middle East to formalize such an ambitious plan. The emirate is targeting a position among the top five most cashless cities globally, joining the ranks of Stockholm, London, Beijing, and Seoul.

Why Go Cashless?

Behind the headlines and announcements lies a clear strategic rationale. Dubai’s push toward cashlessness is not just about innovation for its own sake; it is designed to deliver measurable benefits for the economy, businesses, and consumers.

Economic growth

Studies commissioned by the Dubai Department of Finance estimate that the cashless transition could boost the emirate’s GDP by over AED 8 billion ($2.1 billion) annually, thanks to faster transactions, reduced operational inefficiencies, and a more transparent financial system. 

Going digital cuts costs for banks and merchants related to cash handling, storage, and security. Similarly, the GCC digital payment market size was valued at $2.4 billion in 2024. Looking forward, IMARC Group estimates the market to reach $6.9 billion by 2033, exhibiting a CAGR of 11.2% from 2025 to 2033.

Transparency and reduced shadow economy

Cash transactions have often allowed tax evasion, unreported income, and informal business dealings. With every payment recorded digitally, Dubai expects to shrink its shadow economy, improving governance and compliance.

Financial inclusion

Globally, one concern about digital transactions is whether marginalized groups get left out. Dubai has made it clear that the strategy includes new initiatives to ensure every citizen, resident, and worker, whether highly salaried professionals or low-income laborers, can access low-cost payment channels easily. 

Partnerships with financial service providers are being designed to integrate mobile wallets with identity systems, ensuring secure access even for those without traditional bank accounts.

How the Cashless Strategy Works

The vision of a “cashless Dubai” is being translated into reality through a constellation of partnerships, regulations, and technological innovations.

Government sector first

As a starting point, all government agencies in Dubai, ranging from municipal services to immigration and licensing, are being directed to adopt 100% digital payments. Already, the General Directorate of Residency and Foreigners Affairs (GDRFA) has signed agreements with Dubai Finance to expand digital channels for visa services and residency applications. This ensures that even essential services are cash-free.

Business integration

In 2025, the Dubai International Financial Centre (DIFC) partnered with the Department of Finance to lead nationwide workshops to help businesses switch to digital-first payment systems. Large malls and international retailers already operate this way, but the challenge lies in bringing small businesses, cafes, independent retailers, and market stalls into the fold. Incentive programs have been announced to help offset the costs of deploying digital payment solutions.

Financial technology innovation

Dubai is relying heavily on fintech for its transformation. Digital payment service providers like Network International and mobile wallet operators such as Apple Pay, Samsung Pay, and PayBy are scaling operations. The city has also encouraged AI-based fraud detection systems, biometric authentication, and blockchain-powered transaction security to ensure safety.

The Security Question

With digital payment comes digital risk. The question of cybersecurity is central to Dubai’s cashless agenda. Ransomware attacks in the UAE increased by 32% in 2024 compared to the previous year, as per statistics from the UAE Cyber Security Council, highlighting risks associated with online transactions. 

To counter this, Dubai is mandating end-to-end encryption protocols, biometric two-factor authentication, and AI-driven anomaly detection. Payment firms are required to adhere to global security standards such as PCI DSS and ISO 27001.

Challenges on the Road Ahead

No transition is without obstacles, especially one as system-wide as eliminating cash.

Inclusivity for low-income workers

Dubai depends heavily on migrant labor, with more than 85% of the population made up of expatriates. Ensuring that low-wage workers have access to affordable mobile payment tools is critical. Programs are being developed to integrate wages directly into prepaid digital wallets that can then be used across retail and service outlets.

Merchant adoption gaps

While large retailers are quick to adapt, smaller independent merchants may struggle with device costs, transaction fees, or technology know-how. Dubai’s government has already begun subsidizing QR-based payment solutions as cheaper alternatives to card readers to encourage participation.

Consumer education

Digital scams, phishing, and tech illiteracy among specific demographics remain risks. Dubai is addressing this with citywide awareness campaigns about common fraud types and safe digital practices.

How Dubai Compares Globally

Dubai’s goal of becoming one of the world’s top five cashless cities is bold, but within reach given global trends.

• Sweden: Often referred to as the “most cashless country.” According to the Swedish central bank, only 8% of the population used cash in 2022, and the amount of physical currency in circulation has dropped by half since 2007.

• China: Cities like Beijing and Shanghai report more than 90% of transactions through mobile wallets like Alipay and WeChat Pay. Total mobile transaction volume reached an estimated $20.1 trillion through Alipay in 2025.

• United Kingdom: Since 2019, the share of UK adults with digital-only bank accounts has risen from 9% to 40% by 2025. That equates to around 21.5 million people embracing a new way of managing their finances. 

Dubai’s strength lies in its centralized governance model, ability to push rapid compliance across sectors, and its unique positioning as a global tourism hub. Unlike Sweden or China, Dubai must manage a highly diverse demographic, balancing both tourist needs and resident labor accessibility.

Future Outlook

By the end of 2026, Dubai expects 90% of transactions to be cashless. With government backing, fintech innovation, and consumer adoption already at high levels, this target appears achievable.

The longer-term outlook suggests that Dubai could move far beyond cashless payments to creating AI-powered predictive finance systems, blockchain-verified remittance services, and eventually, greater integration with digital currency platforms. 

Rumors have circulated about the potential future adoption of a UAE Central Bank Digital Currency (CBDC), which could further solidify the city’s leadership in digital transactions.

Still, the city must balance its drive for innovation with inclusivity and cybersecurity. Ensuring that every resident, from high-net-worth investors to migrant workers, can access and trust digital financial tools will determine the strategy’s success.