Cross-border ventures in UAE underscore the nation's flourishing digital expansion
The United Arab Emirates (UAE) is making significant strides in positioning itself as a hub for fintech companies, particularly in the realm of cross-border payments. This shift is largely due to the UAE's comprehensive digital strategy, which focuses on various aspects, including cross-border payments.
One of the key players in this digital revolution is Al Etihad Payments, a subsidiary of the UAE's Central Bank. In 2023, Al Etihad Payments launched Aani, a real-time P2P and P2B payments system. A year later, in 2024, the company introduced Jaywan, a domestic card payment scheme.
The success of cross-border payments companies in the UAE could be linked to the success of the UAE's digital strategy. For instance, in March 2025, Al Etihad Payments signed agreements with global card schemes to take its Jaywan scheme global, allowing Jaywan cardholders to make payments in other countries.
Moreover, the UAE's Digital Economy Strategy aims to double the contribution of the digital economy to the UAE's non-oil GDP from 11.7% to 20% by 2031. This ambitious goal could lead to further developments and advancements in cross-border payments.
The UAE's growing economy and the expansion of companies within it could potentially increase the demand for cross-border payments. The country's geographical location at the intersection of major global trade corridors is driving demand for cross-border payments, especially considering it is home to over 8.7 million migrant workers, equivalent to more than 80% of the country's resident population.
Recently, the UAE has been forging strategic partnerships to enhance its cross-border payment capabilities. Notably, the Central Bank of the UAE (CBUAE) has entered into a series of agreements with China's Cross-Border Interbank Payment System (CIPS).
In June 2025, the CBUAE and CIPS signed a Memorandum of Understanding (MoU) aimed at enhancing cooperation in the payment infrastructure landscape to improve the efficiency, seamlessness, and cost-effectiveness of cross-border payments between the UAE and China. The partnership focuses on designing innovative financial solutions to streamline cross-border transactions, reduce costs, and facilitate trade and investment flows.
In addition, China’s CIPS and CBUAE are developing a program providing local currency clearing services for financial institutions in the MENA region, which will support smoother cross-border transactions and boost regional financial ties.
Moreover, the UAE's Central Bank Digital Currency (CBDC), called the Digital Dirham, has been piloted for cross-border payments. Notably, in January 2024, the first cross-border payment using the Digital Dirham was successfully executed through mBridge, transferring AED 50 million to China.
These initiatives aim to create a more integrated, efficient, and cost-effective cross-border payments system supporting broader trade and financial cooperation between the UAE, China, and the MENA region.
Furthermore, companies within the UAE are seeking to expand their reach globally. For instance, Canadian crypto provider Aquanow partnered with Hubpay to introduce a crypto payments gateway to businesses.
These developments underscore the UAE's commitment to leveraging technology and partnerships to create a robust and efficient cross-border payments ecosystem, thereby supporting the growth and global expansion of businesses in the region.
[1] https://www.cbuae.ae/en/media-centre/press-releases/2025/06/21/central-bank-of-uae-and-chinas-cross-border-interbank-payment-system-cips-sign-memorandum-of-understanding-to-enhance-cooperation-in-payment-infrastructure-landscape [2] https://www.cbuae.ae/en/media-centre/press-releases/2025/06/21/central-bank-of-uae-and-chinas-cross-border-interbank-payment-system-cips-sign-memorandum-of-understanding-to-enhance-cooperation-in-payment-infrastructure-landscape [3] https://www.cbuae.ae/en/media-centre/press-releases/2024/01/18/central-bank-of-uae-announces-successful-cross-border-payment-using-digital-dirham-pilot [4] https://www.cbuae.ae/en/media-centre/press-releases/2025/06/21/central-bank-of-uae-and-chinas-cross-border-interbank-payment-system-cips-sign-memorandum-of-understanding-to-enhance-cooperation-in-payment-infrastructure-landscape [5] https://www.cbuae.ae/en/media-centre/press-releases/2025/06/21/central-bank-of-uae-and-chinas-cross-border-interbank-payment-system-cips-sign-memorandum-of-understanding-to-enhance-cooperation-in-payment-infrastructure-landscape
- The success of the UAE's comprehensive digital strategy, particularly in cross-border payments, has led to the emergence of innovative technology in the finance sector, such as Al Etihad Payments' Aani and Jaywan systems.
- With the UAE's Digital Economy Strategy aiming to boost the digital economy's contribution to non-oil GDP, the integration of technology in lifestyle choices is anticipated to grow, potentially increasing the demand for cross-border payments.
