United Arab Emirates Loyalty Programs Intelligence Report 2025 Market To Grow By 16.1% To Reach $490 Million This Year - Future Growth Dynamics To 2029

(MENAFN- GlobeNewsWire - Nasdaq) The UAE's loyalty market is projected to grow substantially, reaching US$490.8 million by 2025 with a CAGR of 13.6% during 2025-2029. The sector's digital transformation, fintech integration, and focus on personalization and sustainability are key drivers. With competition intensifying, companies must innovate to maintain a competitive edge, as detailed in this comprehensive report.

Dublin, Sept. 05, 2025 (GLOBE NEWSWIRE) -- The "United Arab Emirates 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 United Arab Emirates is expected to grow by 16.1% on annual basis to reach US$490.8 million in 2025. In value terms, the loyalty market in the country has recorded a CAGR of 18.1% during 2020-2024. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 13.6% during 2025-2029. Loyalty market in this region is expected to increase from US$422.7 million in 2024 to reach US$817.6 million 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 United Arab Emirates. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The UAE's loyalty program landscape is transforming significantly, driven by technological advancements, changing consumer expectations, and broader societal goals. Digital transformation is at the forefront, with companies leveraging mobile apps, digital wallets, and AI-powered analytics to create accessible and personalized experiences. This shift is further accelerated by the growing e-commerce sector, with players like Amazon.ae and Noon driving the need for competitive loyalty strategies. Similarly, fintech integration simplifies rewards processes, enabling seamless earning and redemption through platforms like FAB Rewards. As fintech adoption progresses, companies must consistently innovate to remain competitive in a market that is becoming more digital and focused on convenience.
In parallel, the emphasis on experiential rewards and sustainability reflects evolving consumer values in the UAE. High-income demographics favor premium, personalized experiences over traditional discounts, prompting industries like travel and hospitality to create loyalty programs that emotionally engage customers. At the same time, sustainability initiatives such as Etihad Guest's eco-conscious programs align with government policies like the Net Zero by 2050 strategy, attracting environmentally aware customers. Hyper-personalization, fueled by advancements in AI and data analytics, further shapes the future of loyalty programs, allowing businesses to tailor rewards to individual preferences. Companies that embrace these trends will strengthen their market position, while those that lag in adopting these innovations risk falling behind in a competitive and rapidly evolving market.
Digital Transformation of Loyalty Programs

• Loyalty programs in the UAE are increasingly being digitized, with mobile apps, digital wallets, and online platforms becoming central to their design. Companies like Emirates Airlines' "Skywards" and Etihad Airways' "Etihad Guest" are leveraging digital tools to make loyalty programs more accessible and personalized for customers.
• The rapid adoption of digital payment solutions and the growing penetration of smartphones in the UAE have catalyzed this shift. The e-commerce boom, driven by players like Amazon.ae and Noon, has further emphasized the need for digital loyalty programs to enhance customer retention in an increasingly competitive online retail environment.
• This trend is expected to intensify as more companies digitize their offerings to meet evolving consumer expectations. Enhanced personalization through data analytics and AI will become a competitive differentiator for loyalty programs. However, businesses that fail to adopt digital tools risk losing market share in an increasingly tech-savvy consumer base.

Focus on Experiential Rewards

• Companies in the UAE are shifting their loyalty programs from product-based rewards to experiential rewards, such as exclusive events, travel perks, and VIP access. Emirates Airlines, for instance, offers tiered loyalty benefits that include luxury lounge access and upgrades.
• The UAE's affluent customer base and preference for luxury and premium experiences are driving this trend. Sectors like travel, hospitality, and entertainment are leading the adoption of experience-driven rewards to create emotional engagement with their brands.
• This trend will likely grow as customers seek unique experiences rather than traditional discounts. Companies that can curate premium and personalized experiences will gain a competitive edge, especially in the high-income demographic segments.

Integration with Fintech and Payment Ecosystems

• Loyalty programs are being integrated with fintech platforms and payment solutions. For example, FAB's (First Abu Dhabi Bank) "FAB Rewards" program is closely tied to the bank's credit card offerings, enabling seamless point earning and redemption during transactions.
• The UAE's fintech ecosystem is growing rapidly, with digital banks and payment platforms like PayBy and Tabby gaining traction. This integration allows for seamless customer experiences and ensures loyalty points are accumulated and redeemed conveniently.
• This trend will likely intensify as fintech adoption increases. Payment-based loyalty systems will become more ubiquitous, encouraging real-time rewards and usage tracking. However, increased competition will require banks and fintech players to innovate continuously.

Increased Emphasis on Sustainability in Loyalty Programs

• Many loyalty programs in the UAE are integrating sustainability initiatives, offering rewards for eco-conscious behaviors such as recycling or reducing carbon footprints. The "Etihad Guest Miles for Meals" initiative is an example, where loyalty members can donate miles to support social and environmental causes.
• The UAE government's emphasis on sustainability, such as the Net Zero by 2050 strategy, has inspired companies to align their programs with broader environmental goals. Consumers are also increasingly favoring brands that prioritize sustainability.
• This trend is expected to strengthen, with more companies integrating environmental and social impact initiatives into loyalty strategies. Businesses aligning with these values will likely attract a more engaged and loyal customer base.

Hyper-Personalization of Customer Rewards

• Personalization is becoming a cornerstone of loyalty programs in the UAE, with brands using advanced analytics and AI to deliver tailored offers. Carrefour UAE's loyalty program uses its app to send personalized promotions based on shopping habits.
• The availability of big data and advancements in AI have enabled businesses to analyze consumer behavior at scale. Moreover, customers in the UAE expect tailored solutions, given the premium services offered in other aspects of their lives.
• Hyper-personalization will become a standard feature of loyalty programs as customers increasingly demand rewards that align with their preferences. Companies that effectively leverage data insights will see higher engagement and program effectiveness.

Market Structure and Competitive Intensity:

• The UAE loyalty market is concentrated in the aviation, banking, and luxury retail industries. Major players like Emirates Airlines' Skywards, Etihad Airways' Etihad Guest, and Carrefour's loyalty program hold significant market share. These sectors are characterized by well-established programs that dominate customer engagement.
• The e-commerce and retail sectors are more fragmented, with smaller players like Talabat and Deliveroo competing for market share. These companies often use loyalty points or cashback programs to attract and retain customers. This fragmentation creates opportunities for innovation and niche positioning.
• Rapidly growing demand for digital rewards has intensified competition, particularly in retail and e-commerce. Customers increasingly expect seamless and value-driven loyalty solutions, pressuring businesses to meet these expectations. As a result, many smaller players are innovating or joining coalition loyalty networks to remain competitive.
• Coalition loyalty programs like "Beam Wallet" or co-branded banking initiatives have emerged as critical strategies for smaller businesses. These partnerships allow companies to share resources, broaden their customer reach, and compete against dominant market players. Such collaborations are shaping the loyalty market's competitive dynamics.

Future Outlook

• Businesses are expected to invest significantly in personalization, data analytics, and AI to enhance loyalty programs. These technologies will enable hyper-personalized rewards, increasing customer engagement and retention. As competition intensifies, innovation will become a key differentiator for market leaders.
• Smaller players may merge into larger coalitions to maintain relevance, leveraging shared resources and customer networks. Established players will focus on expanding ecosystems by integrating fintech platforms and adopting technologies like blockchain for secure and efficient loyalty management. These strategies will help companies strengthen their market positioning in an increasingly competitive environment.
• Partnerships across retail, travel, and financial services are expected to grow, offering consumers integrated and seamless loyalty experiences. In e-commerce and retail, consolidation is anticipated as larger ones acquire smaller players to achieve economies of scale. These shifts will create a more streamlined loyalty landscape, improving business and customer value propositions.

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• Emirati Loyalty Programs Market

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