(MENAFN- Khaleej Times)
The UAE's food and beverage (F&B) sector is at the cusp of a transformation, driven by the power of loyalty programmes and advanced technology. With rising consumer expectations for personalized experiences and the UAE's broader push towards a Smart City vision, the stage is set for innovation in customer engagement.
The F&B sector in the UAE continues to flourish, buoyed by the country's role as a global hub for tourism and dining. The loyalty market in the region mirrors this growth, fuelled by a high smartphone penetration rate of 97 per cent and the rising adoption of digital-first solutions. According to industry forecasts, the loyalty market for F&B is poised for exponential growth, underlining the importance of personalized customer interactions. The market is projected to grow at a compound annual growth rate (CAGR) of 8.9 per cent, increasing its value from $1.42 billion in 2023 to $2.20 billion by 2028.
AI-powered evolution
At the heart of this revolution is the role of artificial intelligence (AI) and data analytics in loyalty programmes. Companies thriving in the loyalty market like Dsquares are spearheading this change by leveraging AI to transform customer experiences. AI-driven tools enable businesses to analyse purchase patterns, segment customers, and provide hyper-personalised rewards, gamified incentives, and tailored campaigns. This not only enhances customer retention but also empowers brands to stay ahead in a fiercely competitive landscape.
Dsquares' recent acquisition of Prepit, a B2B SaaS loyalty platform, exemplifies how innovation meets opportunity. Prepit's AI-driven solutions for SMEs in the F&B sector streamline operations and elevate customer engagement. For instance, its platform can analyse customer data to reveal insights about popular menu items or help design targeted marketing campaigns. Combined with Dsquares' expertise, this partnership promises to deliver unprecedented efficiency and personalisation for businesses across the UAE.
Through this acquisition, Dsquares is expanding its Martech capabilities, blending Prepit's advanced AI engine with Dsquares' Campaign Command Center to deliver hyper-personalised customer experiences. From tailored communications to gamified challenges, the combined platform offers a unified solution to strengthen brand-consumer relationships.
Dsquares CEO, Marwan Kenawy, said:“The loyalty market is taking customer experiences to new heights, and AI has exacerbated this process. We are certain that governments, companies and customers will start engaging with digital-first solutions to reshape new lifestyles.”
Dubai's Smart City vision
Dubai's Smart City strategy complements this trajectory perfectly. The initiative focuses on integrating advanced technologies like AI, IoT, and blockchain to enhance urban experiences. From smart transportation to AI-powered services, the city's ambition sets a benchmark for tech-driven economic growth. This alignment with innovation creates a fertile ground for loyalty solutions to thrive, fostering customer-centricity in F&B and beyond.
Programmes like Smart Dubai's Happiness Agenda showcase the city's commitment to utilising data and technology for enhancing citizen satisfaction. Similarly, digital transformation initiatives across the UAE create a conducive environment for the adoption of AI-driven loyalty programmes. Additionally, the UAE's Vision 2030 and its focus on diversifying the economy provide further impetus for F&B operators to integrate advanced loyalty solutions, ensuring long-term growth.
Consumer-centric innovation
Today's consumers demand more than just great food - they seek experiences. Loyalty programmes tailored to individual preferences are a game-changer. Dsquares and Prepit are responding with solutions that offer gamified rewards, predictive analytics, and AI-powered recommendations.
By leveraging data analytics, F&B operators can uncover valuable insights, such as identifying their most profitable customers, understanding customer demographics, and recognizing trends in purchasing behaviour.
Looking ahead
As the UAE continues its journey toward economic diversification and digital transformation, the F&B sector stands as a shining example of innovation. The future of dining in the UAE isn't just about flavours - it's about fostering lasting relationships between brands and consumers, powered by technology and a vision for excellence. In a region where dining is an experience, loyalty solutions are the secret ingredient for success.
MENAFN30012025000049011007ID1109147755
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.