Mastercard, a global leader in payment solutions, and Abu Dhabi Global Market (ADGM) have unveiled a strategic collaboration aimed at catalyzing the growth of the burgeoning small and medium enterprise (SME) sector in Abu Dhabi and the broader UAE by digitalizing SME payment flows. This collaborative initiative seeks to empower SMEs, leveraging Mastercard’s cutting-edge technologies and resources, and tapping into the recently launched ADGM SME financing platform Numou.

Under this collaborative effort, Mastercard and ADGM will collaborate closely with local banking partners to introduce SME cards. These cards are designed to provide SMEs with a seamless and secure mechanism for managing their business expenses efficiently. The partnership extends beyond card offerings, as it encompasses participation in Mastercard’s SME business education program. Additionally, eligible small businesses will receive support through Start Path, Mastercard’s globally recognized startup engagement program. Start Path offers later-stage fintech startups access to Mastercard’s extensive fintech portfolio and essential resources for accelerated growth.

Hamad Sayah Al Mazrouei, the CEO of ADGM Registration Authority (RA), highlighted the transformative goal of the collaboration, stating, “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.”

Acknowledging the significance of SMEs as economic pillars, J.K. Khalil, Cluster General Manager, MENA East, Mastercard, stated, “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.”

Despite the UAE’s shift toward a digital economy and the increasing adoption of digital payments by SMEs, Mastercard’s research reveals that many SMEs remain hesitant to use business payment solutions. Instead, they often resort to personal banking products due to perceived challenges such as high fees, usability issues, and ineligibility for mainstream business banking. A significant percentage of SMEs worldwide, nearly 60%, still rely on cumbersome bank transfers for the majority of their payments, while 51% prefer the use of risky cash. To address these concerns, Mastercard positions itself as a trusted provider of innovative solutions tailored to the unique needs of SMEs, ideally positioning them for diversification and expansion.

SMEs play a pivotal role in driving economic diversification and digital transformation in the UAE, contributing 63.5% to the nation’s non-oil GDP, according to government data. With the number of SMEs projected to reach 1 million by 2030, the collaborative efforts of Mastercard and ADGM are poised to be instrumental in fostering the growth of SMEs in the digital era.