$7.06 trillion UAE payments through FTS and ICCS in 2025

The total value of 139.55 million payments through UAE FTS and ICCS last year exceeded Dh25.9 trillion (US$7.06 trillion), according to the UAE Central Bank.

This includes the processing of 23.78 million physical cheques valued at Dh1.5 trillion through the UAE Central Bank’s Image Cheque Clearing System (ICCS) in 2025. A large chunk of these payments are linked to sale and purchase transactions by businesses that were recorded through manual and paper invoices.

The UAE Funds Transfer System (UAEFTS) witnessed 114.9 million retail transactions valued at Dh9.9 trillion in 2025, according to the UAE Central Bank – most of which are recorded through physical invoices. Institutional transfers through UAEFTS totalled 865,708 transactions valued at Dh14.5 trillion in 2025.

However, from January 1, 2027, most of these types of transactions will become part of the E-Invoicing eco-system that will reflect on the FTA records real time and help improve tax collection, as the UAE shifts to E-Invoicing regime later this year.

The E-Invoicing system will be mandatory for businesses generating more than Dh50 million turnover from January 1, 2027. Companies will have to select the Accredited Service Providers (ASPs) from amongst the 28 authorised ASPs approved by the UAE Federal Tax Authority (FTA) by July 1, 2026.

Mariam Abdullah Al Matroushi, Deputy Director of Fujairah Department of Finance and Member of the Board of Directors at the Federal Tax Authority, said, “The UAE is moving steadily toward developing its tax system by adopting an e-invoicing system in less than two months, in phases from January 1, 2027, starting with companies generating more than Dh50 million turnover, that requires all stakeholders to start preparing for E-Invoicing,

“This will become mandatory for companies with turnover less than Dh50 million around the second half of 2027. This digital E-Invoicing system is transparent and will help all stakeholders in real-time processing VAT and Corporate Tax in the UAE.

“This step is part of the UAE Government’s vision to build a knowledge- and technology-based economy, with E-Invoicing serving as a pivotal tool to support financial innovation and strengthen integration between the public and private sectors.”

More than 125 billion E-Invoices were processed in 2024 worldwide, including 5 billion in Saudi Arabia where E-Invoicing volume, managed by Zakat, Tax and Customs Authority (ZATCA) via the Fatoorah platform, exceeded 8.2 billion invoices in 2025, representing a 64 per cent increase from 2024 and highlighting rapid digital adoption. As of early 2026, the integration process is on-going in waves, with the 24th wave of Phase 2 targeting businesses with smaller revenue thresholds.