Financial inclusion in the UAE presents a distinctive challenge: while Emirati citizens enjoy near-universal banking access, the large expatriate workforce — particularly lower-income segments — remains underserved by traditional financial institutions. The We the UAE 2031 framework targets universal financial access through a combination of digital banking, wage protection systems, and fintech-enabled services that bypass traditional branch-based models.
Financial Inclusion Key Metrics
| Metric | 2022 | 2023 | 2024 | 2025 (est.) | 2031 Target |
|---|---|---|---|---|---|
| Adult banking penetration (%) | 78% | 81% | 84% | 86% | 95% |
| Citizens with bank accounts (%) | 97% | 97% | 98% | 98% | 99%+ |
| Low-income workers with accounts (%) | 52% | 58% | 65% | 71% | 90% |
| Digital payment transactions (Bn) | 1.8 | 2.4 | 3.2 | 4.0 | 8.0+ |
| Cash transaction share (%) | 28% | 23% | 18% | 14% | <5% |
Digital Banking and Fintech Adoption (2024)
| Service Category | Users (Millions) | Growth (YoY) | Penetration (%) |
|---|---|---|---|
| Mobile banking (traditional banks) | 6.8 | +14% | 68% |
| Digital-only banks (neobanks) | 2.1 | +52% | 21% |
| Digital wallets | 4.5 | +38% | 45% |
| Instant payment (IPP) | 3.2 | +85% | 32% |
| BNPL services | 1.4 | +44% | 14% |
Progress Rate Analysis
The UAE’s financial inclusion trajectory has accelerated significantly since 2022, driven primarily by two factors: the Central Bank’s instant payment platform (IPP) launch and the licensing of digital-only banks. The IPP has transformed person-to-person and person-to-business payments, growing 85 per cent year-on-year in 2024 and reducing dependency on cash for everyday transactions.
Low-income worker banking penetration — the most challenging inclusion metric — improved from 52 per cent to an estimated 71 per cent by 2025. The Wage Protection System (WPS) mandates salary payments through regulated channels, effectively requiring some form of account access. Digital wallets and simplified KYC processes for lower-risk accounts have enabled rapid onboarding of workers previously excluded from traditional banking.
Risk Factors
| Risk | Severity | Impact |
|---|---|---|
| Digital literacy gaps among low-income workers | Medium | Limits effective use of digital services |
| Fraud and scam vulnerability | Medium | Erodes trust in digital channels |
| Fintech regulatory tightening | Medium | May slow innovation pace |
| Remittance cost competitiveness | Medium | Affects adoption among expat workers |
| Data privacy and surveillance concerns | Low-Medium | Discourages sensitive financial data sharing |
Outlook
The UAE is making strong progress toward universal financial inclusion, with digital payment infrastructure providing the technological foundation. The remaining challenge is converting account ownership into active financial participation — ensuring that newly banked workers use their accounts for savings, credit access, and insurance rather than merely receiving and immediately withdrawing wages. Financial literacy programmes, competitive remittance pricing through digital channels, and affordable micro-insurance products will determine whether inclusion translates into genuine financial empowerment.
Current Assessment: On Track — digital infrastructure enabling rapid inclusion gains.