(MENAFN- GlobeNewsWire - Nasdaq) The Middle East's loyalty market is set to grow at a CAGR of 13.8% from 2025 to 2029, reaching $5.49 billion. The report covers detailed analyses of trends like mobile app-based and coalition loyalty programs, AI personalization, ESG incentives, and subscription models, with insights on regional dynamics and sector opportunities.Dublin, Sept. 05, 2025 (GLOBE NEWSWIRE) -- The "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 - Q3 2025 Update" report has been added to ResearchAndMarkets.com's offering.
The loyalty market in Middle East is expected to grow by 16.3% on annual basis to reach US$3.27 billion in 2025. In value terms, the loyalty market in the region has recorded a CAGR of 18.3% during 2020-2024. The loyalty market in the Middle East will continue to grow over the forecast period and is expected to record a CAGR of 13.8% during 2025-2029. Loyalty market is expected to increase from US$2.81 billion in 2024 to reach US$5.49 billion by 2029.
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.
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.
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.
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 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.
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