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January 6, 2014

Credit card use to increase massively in the UAE in 2014

According to the experts, in 2014 credit card use by UAE consumers will increase exponentially.

By Angelo Boccato

According to the experts, in 2014 credit card use by UAE consumers will increase exponentially.

 

The key trend will be influenced by several factors, such as inflation, renewed confidence, increased reliance on mobile technology and improved economic conditions. High consumerism and growing disposal incomes are also quoted as relevant factors by industry sources.

 

Steve Gregory, managing partner at Holborn Assets, said at Gulf News : "I see credit card use going up and people maxing out their cards to meet expenses and then taking further cards to support their spending. We are coming back into the cycle of boom".

 

Credit card uptake is not the only field that is going to experience a massive growth: household expenditures and online shopping are also expected to increase.

 

According to Fatima Sherif, research analyst at Euromonitor International, the growing disposable income and continued expansion in hospitality and retail sectors are expected to contribute to the growth in consumer demand.

 

Talking about online shopping, Sherif added: "Not only are consumers spending more time online, they are also becoming very tech-savvy in the sense that they are more accustomed to making online transactions to fit with the more convenient lifestyle that they seek."

 

Credit card usage is also expected to grow because of the favourable economic conditions now present in the UAE, which are generating a renewed optimism.

 

A renewed optimism ahead of the World Expo 2020, to be held in Dubai, is also thought to be a factor.

 

As Ashok Sardana, managing director at the Continental Group said concerning Expo 2020: "While people are a bit wary with plastic money, it is easy to get carried away with and spend with credit cards".

 

Related articles:

alizz islamic bank launches new Shari’a compliant MasterCard credit card in Oman

LGB, MasterCard partner to launch new credit card in UAE

Huge scope for Middle East prepaid growth

 

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