UAE Credit Cards: Reap Rewards and Savings with Smart Spending

The UAE credit card market has shown significant growth and is a key component of the country’s financial landscape, which is considered one of the bests worldwide due to solid foundation laid down by the Central Bank of the UAE.

Credit cards have become an important part of our life as they provide an array of benefits from zero per cent interest financing to free shipping access as well as offers rewards through loyalty programmes. Perhaps it is one of the most lucrative perks for cardholders to earn rewards if they channelise their spending through credit cards.

Rewards come in all shapes and sizes, providing the card users with cash back, points or airmiles that they can redeem for statement credits, travel, gift cards and much more. Most of the reward programmes offer cardholders incentives for spending, turning everyday purchases into opportunities for savings and benefits.

UAE Leads the Region

Today, the UAE leads the region in credit card usage as the tech-savvy population prefers plastic cards over carrying a cash in their wallet. According to a recent Consumer Lifestyle survey, the UAE’s credit card usage in terms of the average size of transactions and number of transactions per month is far ahead of other countries in the region.

“The UAE tops the Gulf region in terms of frequency of card use too as 31 per cent of the cardholders using their credit cards more than 10 times during a month. While 32 per cent of the card users preferred to use three to five times during a month, 19 per cent used between six to 10 times,” according to the survey.

Vijay Valecha, Chief Investment Officer at Century Financial, referring to GlobalData, a prominent data and analytics firm, said the UAE’s card payments market is projected to expand at a compound annual growth rate (CAGR) of 10.6 per cent from 2024 to 2028, reaching Dh764.1 billion ($208.2 billion) by 2028, as reported by GlobalData, a prominent data and analytics firm.

While referring to Bain & Company, he said the UAE merchant acquiring market, i.e., the Credit Card Market, reached a total payment volume of approximately $150 billion in 2024, representing a compound annual growth rate of 13-14 per cent since 2020. In 2025, it is expected to grow by 10.6 per cent, reaching $166 billion. Looking ahead, it is expected to grow at a CAGR of 9.6 per cent, reaching $240 billion by 2029.

“The main reason for this growth is three primary factors: increased population, high consumer propensity to spend, and increased adoption of digital payment via government initiatives. Looking ahead, these are expected to be the main drivers of growth,” Valecha told Khaleej Times.

He said credit card users in the UAE have a wide variety of cards offered by various banks that provide benefits to consumers in multiple ways.

“The most common way that banks reward credit card customers is through cashback. These could be offered on various expenses like groceries, fuel, dining, Salik, education, utilities, among others,” he said.

Safety, Saving and Rewards

Credit cards offer a variety of rewards, benefits, and potential savings that can significantly enhance spending experience of the users. One of the most appealing features of credit cards is the rewards programmes that allow cardholders to earn points, cash back, or travel miles for every dirham spent. Depending on the card, rewards can be tailored to specific categories like grocery shopping, dining, or travel, giving consumers the opportunity to maximise their earnings on everyday purchases.

Another significant advantage of credit cards is the convenience and security they provide. Unlike carrying cash, a credit card allows for safer transactions, especially when traveling or shopping online. Many credit cards also come with added benefits such as extended warranties on purchases, purchase protection, and identity theft protection, which can provide peace of mind and additional savings if an issue arises.

Furthermore, utilising credit cards responsibly can help build a strong credit score. A good credit history opens doors to better loan terms and lower interest rates in the future, resulting in long-term financial savings.

Experts advise the cardholders always to go for cards which offer value for money. Some of the credit cards offered by leading financial institutions such as Commercial Bank of Dubai and Mashreq, among others, come with additional benefits providing cash back, rewards and savings to build long-term relations and retain their customers. They further suggest that the customers should go for credit cards offering international benefits with a global network such as Visa that facilitates digital payments in over 200 countries and territories.

In summary, credit cards can be an effective tool for rewards and savings. By understanding their benefits, consumers can strategically choose a credit card that aligns with their spending habits, enhancing their financial health while enjoying perks that come from responsible use.

HOW TO MAXIMISE REWARDS

It is very important to understand how to maximise the credit card rewards as smart usage of plastic cards can lead to significant financial advantages.

Rewards: Most credit cards offer rewards tailored to specific spending habits. Cash-back cards provide 1-10% back on purchases, with higher rates in categories like dining or groceries. Travel cards focus on miles or points for flights, hotels, or upgrades often with bonuses for specific merchants. Choosing a card aligned with your spending — whether gas, groceries, or travel — maximises rewards.

Benefits: Credit cards provide perks like purchase protection, extended warranties, or travel insurance. Premium cards often include airport lounge access, annual travel credits, or concierge services. Fraud protection is another universal benefit, shielding users from unauthorised charges.

Savings: Strategic use of rewards can yield substantial savings. Redeeming points for high-value options, like travel or gift cards, often provides better returns than cash. Sign-up bonuses amplify savings for new cardholders meeting spending thresholds.

To maximise value, choose a card matching your lifestyle, pay off balances, and track rotating bonus categories. Always read terms to avoid pitfalls like annual fees or expiring points. Used wisely, credit card rewards can enhance financial flexibility and savings.