Middle East Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update

The loyalty market in Middle East is expected to grow by 16.3% on annual basis to reach US$3.27 billion in 2025. 

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Middle East With over 50 KPIs at the country and regional level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

This title is a bundled offering combining 5 reports, covering regional insights along with data centric analysis at regional and country level:

• Middle East Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
• Israel Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
• Saudi Arabia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
• Turkey Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
• United Arab Emirates Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)

Key Insights

Loyalty programs in the Middle East are evolving beyond traditional points-based models, with digital, coalition, and subscription-based systems gaining prominence. AI-driven personalization, ESG incentives, and blockchain innovations are shaping the future of customer engagement, while financial inclusion efforts are broadening the reach of loyalty initiatives. Over the next few years, businesses that leverage these trends will enhance customer retention and build stronger brand loyalty across the region.

Expansion of Digital and App-Based Loyalty Programs

• Mobile app-based loyalty programs are becoming the standard across the Middle East, replacing traditional paper and card-based systems. Carrefour's MyCLUB and Al-Futtaim's Blue Rewards offer seamless digital experiences in the UAE, while Tamayouz by STC Pay in Saudi Arabia integrates financial services with loyalty benefits. Vodafone Qatar's Red Loyalty Program provides digital-first rewards linked to customer usage patterns in Qatar.
• The widespread use of smartphones (penetration exceeding 90% in the UAE and Saudi Arabia), rapid digital transformation, and increasing consumer preference for convenience drive businesses to adopt app-based loyalty solutions. Additionally, growing e-commerce transactions and mobile payment adoption encourage brands to integrate digital rewards into their platforms.
• More brands will shift towards digital loyalty ecosystems, integrating AI-driven personalization, gamification, and real-time rewards. Companies will also explore in-app engagement tools like push notifications and AI-powered recommendations to enhance customer retention.

Growth of Coalition Loyalty Programs Across Multiple Sectors

• Coalition loyalty programs, where multiple brands collaborate to offer shared rewards, are gaining traction across the Middle East. In the UAE, Etihad Guest allows customers to earn and redeem points with partner airlines, hotels, and retail outlets. STC's Qitaf Program integrates with major telecom, retail, and dining brands in Saudi Arabia. Similarly, NEOM's Vision 2030 initiatives promote multi-sector collaborations to create holistic loyalty ecosystems.
• Economic diversification efforts in countries like Saudi Arabia and the UAE encourage cross-industry partnerships. Businesses are leveraging coalition programs to expand customer reach while offering greater flexibility in reward redemption. The increasing spending power of Middle Eastern consumers also makes coalition models attractive.
• Coalition loyalty programs will become more integrated, particularly in the financial, travel, and retail sectors. The development of super apps and cross-sector collaborations will further enhance the value proposition for customers, enabling them to earn and redeem points across a wide network of businesses.

Rise of Subscription-Based Loyalty Models

• Subscription-based loyalty models, where customers pay a recurring fee for premium benefits, are gaining popularity in the Middle East. Amazon Prime UAE and KSA offer exclusive discounts, free shipping, and streaming services. Careem Plus, available in the UAE and Saudi Arabia, provides discounted rides, food delivery perks, and priority support. Talabat Pro offers free delivery and exclusive restaurant deals for a monthly fee in Qatar.
• The increasing demand for convenience, premium services, and exclusive deals is fueling the adoption of subscription-based loyalty. Additionally, consumers in the Middle East are willing to pay for VIP experiences, as seen in the success of airline and hospitality loyalty tiers. The rise of digital payments and auto-renewal subscription models also contributes to this trend.
• More industries, including retail, telecom, and entertainment, will introduce subscription-based loyalty tiers. Businesses will focus on offering high-value perks, such as personalized recommendations, free delivery, and VIP customer support, to justify subscription costs.

Increasing Focus on Personalization Through AI and Big Data

• AI-driven personalization is reshaping loyalty programs in the Middle East. Noon VIP in the UAE leverages customer purchase history to offer customized discounts, while Jarir Bookstore in Saudi Arabia uses AI-powered insights to tailor rewards based on buying behavior. In Egypt, Jumia’s loyalty program applies machine learning to analyze user preferences and suggest relevant promotions.
• The rapid growth of e-commerce increased digital transactions, and advancements in AI and big data analytics are making it easier for businesses to offer personalized loyalty experiences. Additionally, Middle Eastern consumers expect tailored rewards and exclusive offers, driving companies to enhance their data-driven strategies.
• AI-powered loyalty programs will become more widespread, with businesses using predictive analytics to refine customer segmentation and engagement. More brands will integrate real-time data tracking to offer hyper-personalized deals and dynamic rewards.

Expansion of ESG-Driven Loyalty Initiatives

• Environmental, social, and governance (ESG) principles are being incorporated into loyalty programs across the Middle East. Etihad Airways' Conscious Choices Program rewards travelers for making sustainable choices, such as using less plastic and opting for carbon-neutral flights. The Entertainer UAE has introduced incentives for eco-friendly purchases, while Saudi Arabia's Green Riyadh Initiative drives corporate sustainability-linked rewards.
• Government-led sustainability initiatives, rising consumer awareness of climate change, and corporate ESG commitments encourage brands to incorporate sustainability-focused rewards into loyalty programs.
• ESG-based loyalty programs will expand into new sectors, such as retail, travel, and financial services. More businesses will introduce rewards for ethical consumer choices, supporting regional sustainability goals.

Financial Inclusion and Loyalty Program Expansion in Emerging Markets

• Loyalty programs are being integrated into financial inclusion efforts, particularly in emerging markets like Egypt and Jordan. Vodafone Cash in Egypt offers transaction-based rewards, while e& money in the UAE incentivizes mobile banking adoption.
• The need for digital financial services in underbanked communities, increasing mobile payment adoption, and government-backed financial literacy programs are key drivers of this trend.
• Loyalty-linked financial inclusion initiatives will help bring more consumers into the digital economy. Partnerships between fintech companies, telecom providers, and retail brands will further drive adoption.

Competitive Landscape of the Loyalty Market in the Middle East

The Middle Eastern loyalty market is partially consolidated, with banking, telecom, and coalition programs leading the competitive landscape. The rise of super apps, fintech-driven rewards, and AI-powered personalization is increasing competition and consumer expectations. Over the next 2-4 years, consolidation will continue, with super apps, AI-driven engagement, and ESG-linked incentives reshaping how brands retain and engage customers in the region.

Competitive Intensity and Market Structure

• The growing dominance of digital-first and app-based loyalty programs: Loyalty programs in the Middle East are increasingly mobile-first, with leading players such as Al-Futtaim's Blue Rewards (UAE), Carrefour MyCLUB (UAE, Saudi Arabia), and Etihad Guest (UAE, GCC) offering seamless app-based engagement. These programs integrate AI-driven personalization and real-time digital rewards, setting a high competitive benchmark.
• Strong competition among coalition and industry-specific programs: Unlike Africa’s fragmented market, the Middle East has a growing number of coalition programs such as STC Qitaf (Saudi Arabia), Air Miles Middle East (UAE, Bahrain, Qatar), and NEOM’s cross-industry loyalty plans (Saudi Arabia). Meanwhile, individual brands such as Jarir Bookstore (Saudi Arabia) and Lulu Hypermarket (UAE, Oman, Bahrain) are strengthening retail-specific loyalty initiatives.
• Banking and fintech players competing for consumer engagement: The region’s high credit card penetration has enabled banks like Emirates NBD (UAE), Al Rajhi Bank (Saudi Arabia), and Qatar National Bank (QNB) to offer tiered cashback and points-based loyalty programs. Meanwhile, fintech startups such as Tabby (UAE, Saudi Arabia) and Tamara (Saudi Arabia) are integrating rewards into buy-now-pay-later (BNPL) and digital payment ecosystems, increasing competitive intensity.

Types of Players in the Loyalty Market

• Coalition and multi-brand loyalty programs dominate retail and travel: The Middle East has established coalition programs allowing users to earn and redeem points across multiple industries. For instance, Etihad Guest (UAE) and Air Miles Middle East (GCC) provide multi-sector rewards. At the same time, STC Qitaf (Saudi Arabia) collaborates with major brands, including fuel stations, hotels, and e-commerce platforms.
• Bank-led and fintech-driven rewards are shaping financial loyalty programs: Major banks such as First Abu Dhabi Bank (UAE), Riyad Bank (Saudi Arabia), and Qatar Islamic Bank (Qatar) are offering tiered credit card loyalty incentives, driving financial engagement. At the same time, fintech companies such as Careem Pay and PayTabs are integrating loyalty features into digital wallets and BNPL services.
• Retail, hospitality, and telecom players leading industry-specific loyalty initiatives: Major brands such as Carrefour, Lulu Hypermarket, and Al-Futtaim Group (UAE, Saudi Arabia, Qatar) dominate the retail-based loyalty landscape, while telecom operators like STC, Ooredoo, and Etisalat have built airtime and lifestyle rewards programs.

Market Fragmentation vs. Consolidation

• The UAE and Saudi Arabia are more consolidated, while the wider region remains fragmented: Major businesses dominate the loyalty ecosystem in Saudi Arabia and the UAE, with large banks, retailers, and travel brands consolidating customer engagement through multi-sector partnerships. However, the market remains more fragmented in Bahrain, Oman, and Egypt, with local businesses running independent loyalty initiatives.
• Super apps are driving partial consolidation in mobility and fintech loyalty programs: Platforms such as Careem (UAE, Saudi Arabia), Noon (UAE, Saudi Arabia, Egypt), and Talabat (GCC) are integrating cross-industry rewards and linking ride-hailing, food delivery, and e-commerce incentives within a single ecosystem. These super apps are creating a competitive challenge for standalone loyalty programs.
• Banking and travel loyalty programs are consolidating through partnerships: The financial services sector is witnessing increasing consolidation, as seen in Etihad Guest’s partnership with Emirates NBD and FAB’s tie-ups with multiple luxury brands. Similarly, airline loyalty programs such as Emirates Skywards and Saudia Alfursan are expanding their partnerships with hotel chains and retail groups.
• Strict regulations around financial loyalty programs: Unlike in some emerging markets, loyalty programs linked to financial services and digital payments in the Middle East must comply with strict government regulations. For instance, the UAE Central Bank and the Saudi Arabian Monetary Authority (SAMA) regulate cashback incentives and fintech-driven rewards programs, creating barriers for new entrants.
• High brand loyalty to existing players makes market penetration difficult: Many Middle Eastern consumers are already deeply engaged with established loyalty programs, such as Air Miles Middle East, Carrefour MyCLUB, and STC Qitaf. For new entrants, gaining consumer adoption requires heavy investment in personalized engagement and exclusive incentives.
• Government-backed loyalty and digital economy initiatives prefer local firms: Countries such as Saudi Arabia, the UAE, and Qatar prioritize local businesses and government-linked enterprises in their digital economy strategies. For instance, NEOM's smart city loyalty initiatives and Saudi Vision 2030 fintech programs provide a competitive advantage to local tech and financial firms, limiting foreign competition.

Outlook: Competitive Shifts Over the Next 2-4 Years

• Super apps and cross-industry partnerships will shape the loyalty landscape: More brands will consolidate loyalty programs into multi-service ecosystems, similar to Careem's loyalty expansion into financial services and retail partnerships. Integrating NEOM's digital economy with rewards-based incentives in Saudi Arabia will further redefine regional loyalty structures.
• AI-driven and hyper-personalized loyalty programs will become the standard: Retailers, banks, and travel brands will increase their reliance on AI-powered insights to offer predictive, behavior-driven rewards. For instance, Noon VIP in the UAE and FAB's loyalty engine already use AI to create dynamic, real-time loyalty engagement strategies.
• Sustainability-linked loyalty programs will gain traction: With Middle Eastern governments emphasizing sustainability initiatives, brands will introduce green loyalty incentives. For instance, Etihad Airways' Conscious Choices Program and the UAE’s Green Loyalty Initiative are among the first eco-driven rewards programs, signaling a future shift toward ESG-linked incentives.

Regional and country reports in this bundled offering provide in-depth analysis of loyalty programs.

Below is a summary of key market segments:

Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of Loyalty Market Dynamics at Regional and Country Level: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.