GCC Corporate Credit Card Market is segmented by Type (Visa, Mastercard, Rupay, Others), by End User (Start-ups, Small & Mid-sized Enterprises), Region (Saudi Arabia, Kuwait, UAE, Qatar, Oman, and Bahrain) and GCC Corporate Credit Card market companies (Emirates NBD, HSBC, First Abu Dhabi Bank (FAB), RAKBANK, United Arab Bank, The Saudi Investment Bank, Al Rajhi Bank, Riyad Bank, American Express, Visa, Mastercard, Samba Financial Group, and Alawwal Bank)
Corporate Credit Cards Market was estimated at USD XX million in 2021 and is poised to register gains at over X% CAGR between 2022 and 2032.
Corporate credit cards are typically designed for companies at initial stage. As a result, there is a minimum spending requirement, and the annual fees are higher than those charged for business cards. Corporate credit cards offer multiple rewards and cash back options, just like business cards. Mastercard Corporate World allows companies to manage expenses and corporate payment needs effectively. Companies use these cards to maximize their financial control and get full visibility of their cash flow, reducing expenses and enhancing cash flow.
The perception regarding the usage of corporate credit cards limits the market growth in the KSA.
The corporate credit card is perceived as a payment tool only for emergency payments. Besides that, cards account only for about 20% of total expenditures in the other categories. Unless corporates and banks work together to expand the categories used for the KSA corporate credit card payments, this perception could become self-fulfilling. Companies in Saudi Arabia spend 40% of their total monthly expenses on tax, government payments, insurance, utilities, and stock/inventory, yet cards capture no more than 10% of all expenditures. While taxes, stock/inventory, professional services, courier/logistics, and government payments make up just under 40% of total monthly expenditure, the KSA corporate credit cards currently capture only 7% of what is spent. In addition, insurance, rent, and stock/inventory are the most prominent opportunities in the United Arab Emirates. These expenses together account for half of a large companys monthly expenditures. Corporate credit cards are currently used only in limited ways for these expenses in Saudi Arabia, which hinders the market growth.
The increasing banks alignment to overcome the low acceptance of corporate credit cards in many supplier and invoice categories in the UAE will increase the annual revenue generation of the GCC corporate credit card market.
More than half of UAE companies report that fewer than half of their suppliers accept cards. Additionally, 48% of companies report strained relationships with their suppliers in the UAE. Payment-related problems are often behind these tensions, indicating that current payment methods are not working sufficiently. A corporate credit card alleviates the trouble in such scenarios. Banks often serve both as issuer and acquirer, which helps to address limited acceptance. Through corporate credit cards, they can often play an important role on both sides - helping issuers initiate transactions and helping acquirers accept them. Increasing banks alignment to address this concern is a critical factor enhancing growth on both the issuing and acquiring sides, which in turn will boost the market growth.
Concerns related to security, fraud, and policy compliance of corporate credit card usage is another factor that needs to be monitored closely for the market to thrive in the near future in Saudi Arabia & the UAE.
One of the main concerns of 39% of Saudi Arabias organizations in the survey was security. In spite of this, fraud and security concerns are being addressed gradually by sharing corporate credit card security benefits. Through the implementation of spend controls, these cards help businesses maintain compliance and minimize fraud by tracking account activity and closely monitoring expenditures. The use of a corporate credit card approach can help mitigate fraud, enabling businesses to take control of their business spending.
UAE start-up sector growth is predicted to be unstoppable in 2022, which in turn will support the corporate credit cards market growth in the country.
The UAE corporate credit card market is gaining traction among start-ups and small and medium-sized businesses. Despite the pandemic impact, the start-up sector in the UAE has retained its top position in terms of funding and deals in 2021. UAE-based start-ups raised $1.2 billion across 155 transactions, maintaining their top ranking. In the meantime, Saudi Arabia overtook Egypt to rank second by VC funding in 2021, following a growth of 270 percent from the prior year. Visa corporate credit cards has surpassed all other credit card brands. Its market share was more than half the overall market share in GCC countries in 2021. In addition, Mastercard had just over half the market share of Visa.
“Credit card issuers and banks are promoting the fact that using company credit cards has a number of tangible advantages for businesses. Reducing cash usage, managing expenses more efficiently, reducing accounts payable functions, and improving spend compliance are just some of the benefits. The use of corporate credit cards can also aid cash flow management. GCC countries are focused on increasing use of corporate credit cards for improving the efficiency of the organisations.”
The growing number of start-ups issuing corporate credit cards is expected to fuel up the corporate credit card market revenue in GCC countries during the forecast period.
Emirates NBD, HSBC, First Abu Dhabi Bank (FAB), RAKBANK, United Arab Bank, The Saudi Investment Bank, Al Rajhi Bank, Riyad Bank, American Express, Visa, Mastercard, Samba Financial Group, and Alawwal Bank are among the top leading corporate credit card issuers. Corporate cards were a boring industry for decades, dominated by money-coloured American Express cards, the default choice for power lunches and client dinners around the world. Now, a fleet of richly funded start-ups hopes to change that. Investors and venture capitalists have flocked to a growing group of companies that make corporate credit cards for businesses. For instance, just three start-ups have raised more than $1 billion in funding and debt so far: card-makers Ramp, Divvy, and Brex Inc., which was valued at $2.6 billion in 2021.
Years considered for this report
• Historical Years: Available on Request
• Base Year: 2021
• Forecast Period: 2022-2032
GCC Corporate Credit Card Market Research Report Analysis Highlights
• Historical data available (as per request)
• Estimation/projections/forecast for revenue and unit sales (2022 – 2032)
• Data breakdown for every market segment (2022 – 2032)
• Gross margin and profitability analysis of companies
• Price analysis of each product type
• Business trend and expansion analysis
• Import and export analysis
• Competition analysis/market share
• Supply chain analysis
• Client list and case studies
• Market entry strategy
Industry Segmentation and Revenue Breakdown
Type Analysis (Revenue, USD Million, 2022 - 2032)
End-User Analysis (Revenue, USD Million, 2022 - 2032)
• Small & Mid-sized Enterprises
By Country (Revenue, USD Million, 2022 - 2032):
• Saudi Arabia
GCC Corporate Credit Card market companies:
• Emirates NBD
• First Abu Dhabi Bank (FAB)
• United Arab Bank
• The Saudi Investment Bank
• Al Rajhi Bank
• Riyad Bank
• American Express
• Samba Financial Group
• Alawwal Bank
Available Versions of GCC Corporate Credit Card Market: -
Qatar Industry Research Report
Oman Industry Research Report
Kuwait Industry Research Report
Bahrain Industry Research Report
Alternative Market Terms: GCC Commercial Credit Cards Market
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