New research from Mastercard reveals that 83% of local businesses now view UAE SMEs' digital payments as a key factor for growth, while 74% remain confident about their outlook over the coming year.
The study tracks SME sentiment across Eastern Europe, the Middle East, and Africa. It found that UAE businesses continue to prioritize digital transformation and innovation, even as recent regional developments have affected broader business confidence.
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UAE SME confidence stood at 96% before the latest regional developments but subsequently fell to 74% as businesses adjusted to immediate economic challenges. Despite the decline, 72% of respondents expect their revenues to increase over the next year. This indicates that many businesses remain optimistic about their longer-term prospects.
The Role of UAE SMEs in Digital Payment Adoption
According to the study, 83% of business decision-makers said digital and online payments are important to helping their businesses grow faster and operate more efficiently. Card acceptance is already widespread, with 83% of surveyed businesses accepting card payments, while 72% accept mobile payments.
Businesses also identified expanding digital payment acceptance across multiple channels and providing seamless payment experiences as key areas that could support future growth. These findings suggest that digital payments are increasingly viewed as part of the wider infrastructure businesses use to reach customers, improve operations, and compete.
Navigating Challenges and Economic Pressures
The survey also highlights the challenges facing UAE SMEs. Some 57% of businesses reported experiencing a negative impact on revenue, while 37% said they expect recovery to take six months or longer.
Despite these pressures, 64% identified maintaining and growing their businesses as their top priority. The findings point to a continued focus on resilience, with businesses looking for ways to protect existing operations while identifying new expansion opportunities.
Onur Kursun, Executive Vice President, Commercial and New Payment Flows, EEMEA at Mastercard, said businesses across the region continue to demonstrate resilience and adaptability despite macroeconomic pressures.
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He added that digital capabilities and access to financial services are helping businesses manage short-term challenges while creating opportunities for longer-term growth and competitiveness.
Funding and Future Business Outlook
Funding is another major concern for UAE SMEs. Half of the businesses surveyed said they are seeking credit to support growth, while 37% identified easier access to funding and financial support as a priority.
Businesses are also looking for new sources of revenue, with 35% identifying new revenue streams as a priority. The same percentage said marketing and promotional support would help their businesses.
These findings highlight the importance of both financial access and digital capabilities as SMEs seek to navigate a more challenging operating environment.
Mastercard said it is continuing to support UAE SMEs through initiatives including its Built Small Moving Strong programme. They also offer partnerships and digital solutions aimed at improving competitiveness and accelerating digital transformation to help small businesses strengthen their digital capabilities.
Why it matters to MENA
The findings provide a snapshot of how businesses in one of MENA's most digitally advanced markets are responding to economic uncertainty. The 83% figure for digital adoption is particularly significant.
It suggests that UAE SMEs increasingly see payment technology as part of their growth infrastructure rather than simply a transaction method. For businesses, accepting cards and mobile payments makes it easier to serve customers across physical and digital channels.
The findings also highlight a wider regional challenge: digital adoption is progressing, but access to finance remains a constraint. That combination creates an opportunity for banks and fintech companies across MENA to develop products that bring payments, financing, and business tools closer together.
The bigger takeaway is that MENA's SME growth story is increasingly tied to digital infrastructure. Sustainable growth will depend on whether SMEs can secure the financing needed to expand alongside these new digital efficiencies.
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