Visa cards are more popular than ever in the Middle East

The latest figures from the world's leading payment card system show that cards are taking over from cash as the preferred way to pay for every day goods and services throughout the Middle East region.

During 2001, Visa card numbers in the Middle East rose 31% to more than 6 million and spending went up 24% to just under US$31 billion. The number of Visa transactions grew by 30% to more than 131 million. Most significantly, there was a 30% increase in the number of sales transactions in shops and other outlets, underlining a major change in people's behaviour and a growing recognition of the convenience, security and flexibility of using Visa for everyday shopping. Over the last five years, retail sales volume in the region has risen by 132%.

Peter Scriven, general manager of Visa in the Middle East, says, "These impressive growth figures reveal the changing patterns of payment in a rapidly-developing region - and a real change in people's lifestyles.

"When Visa's Middle East office opened in early 1996, most people relied on cash and Visa cards were largely reserved for affluent international travellers. Since then, the banks' determination to extend the benefits of modern payments has resulted in extraordinary growth and achievement in all customer segments.

"Only a few years ago, card use was relatively low and largely confined to cash withdrawals. Today, Middle East citizens rely on their Visa cards for every kind of spending, from the supermarket, petrol station and bookstore to restaurants and clothes. "

Visa and its Middle East Member banks reached many milestones in 2001. Saudi Arabia reached the 2 million cards mark, whilst Kuwait and the UAE both surpassed a million cards.

There has been strong growth in the number of debit cards in the Middle East - and credit cards are gaining in popularity in the UAE. In the past five years, credit card numbers in the UAE have more than doubled with expenditure now exceeding US$ 1.2 billion.

Credit card transaction numbers have almost trebled and currently stand at 11.3 million transactions. Overall payment card expenditure in the UAE has topped US$ 5.1 billion, a growth of 27%.

As CEMEA's biggest market in terms of cardholder expenditure, Saudi Arabia continues its growth pattern by recording a 26% growth in expenditure to US$14.69 billion, while card numbers rose by 25% to 2.231 million cards. "Our direct presence in the market - following the opening of Visa's representative office in Riyadh in October 2000 - has fostered closer relationships with our members," said Iain Jamieson, General Manager, Visa KSA. "Saudi Arabia is an important market for Visa and we believe that being able to give our members better on-the-ground support has produced dividends."

Kuwait registered a greater growth in card numbers than in 2000 - 21% -to 1,134,220 cards and a 11% increase in expenditure to $7.1 billion. Elsewhere, expenditure in Qatar rose by 19% to $782.5 million on 136,518 cards, whilst Bahrain witnessed a 16% growth in card numbers to 180,608 as consumers responded to more active issuing initiatives. Bahraini banks saw a corresponding 13% growth in expenditure to US$559 million.

Oman remains one of the fastest growing markets in the world for Visa and has continued to realize strong growth in expenditure - up 83% to US$1.29 billion. Oman has also seen the number of Visa cards increase by 54% to 456,000. Five years ago, there were only 12,500 cards in Oman. And Omanis are getting the message that Visa cards are for everyday use: transactions at POS were up 64% last year in Oman.

However, Jordan has taken over from Oman as the fastest growing market in the Arab world, with card numbers increasing by 144% in the past year, to 618,622. "Jordan's success story is a tribute to Visa's member banks and they are now poised to add to their achievements in the years ahead," said Said Shuqom, General Manager of Visa in the Levant region. "With our banks looking at the wider spectrum of their clients and introducing different Visa products, they could reach the million card mark in the next year if present growth rates are maintained."

In Lebanon, card numbers increased by 35% to almost 200,000, whilst transactions were up 42% at 3.9 million, and cardholder spending reached US$632 million, a 39% growth.

ENDS