UAE Credit Cards

By: EconomyWatch   Date: 21 September 2009

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 The UAE credit cards industry is huge in size, owing to the rapid economic growth in the region. Most banks operating in the country offer Dubai credit cards to their accountholders. However, the industry is also facing a credit card crisis due to an increasing number of defaulters.

UAE Credit Cards Industry

According to a MasterCard 2007 report, UAE residents account for approximately one-third the credit cards in the entire Middle East region. The report also establishes that 59% of the UAE residents have highest penetration rates in the world. In a country with a population of around 4 million, there were 2.4 million Dubai credit cards by 2008. All the internationally recognized credit cards, such as MasterCard, Visa, Diners and American Express, are used to make purchases. UAE credit card service providers focus on the retail industry to boost sales. However, a majority of the transactions in the country take place in cash.

UAE Credit Cards Service Providers

UAE credit cards issuing banks include:

  • ABN AMRO
  • Abu Dhabi Islamic Bank
  • Al Hilal Bank
  • Al Shaheen
  • Arab Bank
  • Bank of Sharjah
  • Barclays
  • CBI (Commercial Bank International)
  • Citibank
  • Commercial Bank of Dubai LTD
  • Diners Club International
  • Doha Bank
  • Dubai Bank
  • Dubai First
  • Dubai Islamic Bank
  • Emirates Bank
  • Emirates Islamic Bank
  • HSBC
  • Lloyds TSB Dubai
  • National Bank of Abu Dhabi
  • National Bank of Dubai
  • Sharjah Islamic Bank
  • Standard Chartered Bank

UAE Credit Card Debt

Due to intense competition in the UAE credit cards industry, the country saw a huge market-share war after 2007. UAE credit card providers used aggressive marketing and sales to achieve their goals in a booming economy. Thus, salesmen began to approach every citizen without considering their credit ratings. With this blind rush, several anomalies crept into the system, making it fundamentally weaker. The aftereffects of the market war were visible by mid 2009. According to ArabiaBusiness.com, an online news resource, some of the UAE banks witnessed more than 2,500 credit card customers departing the country every month without paying off their dues. Thus, managing debt has become a nightmare for several UAE credit card providers.

 


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