Mastercard and Abu Dhabi Global Market partner to empower UAE’s dynamic SME community
January 23, 2024 | Abu Dhabi, UAE
Abu Dhabi, UAE, 23 January 2024: Mastercard and Abu Dhabi Global Market (ADGM) have announced a collaboration to fuel the growth of the booming small and medium enterprise (SME) sector in Abu Dhabi and the wider UAE by digitalizing SME payment flows. The partnership will empower SMEs to meet their growth potential through Mastercard’s technologies and resources, and leveraging the recently launched ADGM SME financing platform Numou.
Under the collaboration, Mastercard and ADGM will work with local banking partners to issue SME cards, which will offer a seamless and secure way to manage business expenses.
Beyond card offerings, small businesses can also participate in Mastercard’s SME business education program. In addition, where applicable, Mastercard will support relevant businesses through Start Path, its award-winning global startup engagement program that provides later-stage fintech startups with access to the company’s wide fintech portfolio and everything they need to grow quickly.
Hamad Sayah Al Mazrouei, the CEO of ADGM Registration Authority (RA) said, “At ADGM, our partnership with Mastercard aims to drive digital transformation in the thriving SME sector of Abu Dhabi and the UAE. It will allow us to provide SMEs with a curated value proposition that meets the full spectrum of their requirements so that business owners can focus on developing their offerings and pursuing new opportunities. We look forward to facilitating seamless business and operation management for SMEs while paving the way for sustained growth in the SME segment.”
“SMEs are the backbone of the economy. In line with our commitment to driving financial inclusion, Mastercard has pledged to bring 50 million micro, small and medium enterprises worldwide into the digital economy by 2025. To achieve our target, we are connecting small business owners to the right tools and training while helping them pay and get paid securely, access capital and go digital wherever they are. We are excited to join forces with ADGM as we enable the UAE’s SMEs to grow and thrive,” said J.K. Khalil, cluster general manager, MENA East, Mastercard.
The UAE’s shift to a digital economy continues to accelerate as SMEs increasingly embrace digital payments. However, Mastercard’s research on SME awakening shows that many of them feel discouraged from using business payment solutions, and opt for personal banking products instead. Reasons include high fees, difficulty of use and the fact that some companies are simply not big enough to qualify for mainstream business banking. Almost 60% of SMEs worldwide still make most payments by cumbersome bank transfers (59%), while 51% prefer to use risky cash. To address these issues, Mastercard serves as a trusted provider of innovative solutions tailored to the needs of SMEs, ideally positioning them to diversify and expand.
SMEs are key drivers of economic diversification and digital transformation in the UAE. According to government data, they contribute 63.5% to the nation’s non-oil GDP. The number of SMEs in the country is projected to hit 1 million by 2030.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
Follow us on Twitter: @MastercardMEA and @MastercardNews
