Slow economic growth hasn’t had an adverse effect on the usage of credit cards in the UAE, and according to card issuers and banks, it has in fact increased!
MasterCard Middle east has confirmed that UAE and Saudi Arabia are among the fastest growing markets. In the UAE this year alone, MasterCard has recorded an $8.6 billion total spend.
Similarly, according to Visa, the use of credit cards in the UAE is climbing with customers deviating from cash based transaction to electronic payments. A September report showed that total Visa spending in the UAE has topped $2.9 billion possibly because of increased spending during the holy month of Ramadan and Eid.
Noor Bank and Standard Chartered have also stated that the economic situation did not impact the credit card spend on the UAE.
According to Abu Dhabi Islamic Bank, credit card spending is still accelerating. Retail spending on credit cards has risen 30% year on year with people increasingly choosing to use their credit cards for everyday needs instead of cash.
Jon Richards, CEO of compareit4me says: “Given the whole host of great benefits that are available to customers who spend on a credit card, it’s hardly a surprise to see increasingly savvy shoppers looking to get more for their money.” He added “In addition to the data above, we’ve also seen an increase in the amount of users looking for specific credit card benefits, such as airmiles and free valet parking. We would expect this trend to continue, which makes it more important than ever to make sure that you compare all of the offers available with different credit cards, to ensure that you get thee one that best suits your lifestyle.”