UAE leads GCC in lowest cash use

Dubai: The UAE has been ranked the least dependent on cash for everyday transactions in the Gulf, with just 20 per cent of payments still made in cash, according to the latest Cash Index by Forex SA. At the opposite end of the spectrum, Oman recorded the highest cash usage in the GCC at 50 per cent of total transactions.

Bahrain matched the UAE at 20 per cent, followed by Qatar at 25 per cent. Saudi Arabia and Kuwait each recorded around 30 per cent cash use, placing them in the middle of the regional shift from physical currency to digital payments.

Overall, GCC countries were found to be steadily reducing reliance on banknotes through widespread expansion of electronic point-of-sale networks and national efforts to modernise payment ecosystems.

Reducing cash dependence and expanding digital payment options has become a global objective to enhance financial inclusion, accelerate commercial transactions, and create more efficient economies. Several advanced markets such as South Korea, Norway, China, Iceland and Australia, now conduct less than 10 per cent of daily transactions in physical currency, rendering cash almost obsolete.

By contrast, some countries remain heavily cash-bound, with usage rates approaching 100 per cent. Myanmar, Ethiopia and Gambia still record cash dependency of 95 per cent or more, underscoring the significant digital infrastructure challenges that lie ahead before electronic transactions can become mainstream.

The findings highlight not only the UAE’s rapid progress in digital transformation but also the wide disparities in payment modernisation across global economies.