Middle East Loyalty Market Set To Hit $5.6 Billion As Firms Chase Retention

(MENAFN- Khaleej Times) Businesses across the Middle East are increasing spending on customer retention and personalisation as loyalty programmes evolve beyond traditional points-based rewards into AI-driven ecosystems embedded in payments, digital wallets and everyday consumer spending.

The shift comes as the region's loyalty market is forecast to grow from $3.4 billion in 2026 to $5.6 billion by 2030, representing an annual growth rate of 12.8 per cent. The UAE market alone is expected to reach $592.4 million by 2030, while Saudi Arabia is forecast to hit $1.27 billion.

Recommended For You

Against this backdrop, global consultancy Loyalty & Reward Co announced the opening of its Dubai office and appointed Krishna Mohan as Loyalty Director for the Middle East and North Africa region. The company said the move reflects growing demand from businesses seeking to strengthen customer retention strategies and maximise returns from loyalty investments.

Commercial pressures are also accelerating interest in loyalty programmes. Rising customer acquisition costs and intensifying competition for consumer spending are prompting companies to invest more heavily in customer data and retention, while boards increasingly scrutinise programme costs, returns and long-term business value.

Industry analysts say competition is increasingly centred on owning everyday customer journeys, with rewards linked to activities ranging from groceries and fuel purchases to mobility services and bill payments. AI is also playing a bigger role, enabling brands to personalise offers and experiences across physical and digital channels. At the same time, loyalty programmes are becoming integrated into payment apps and digital wallets, while retailers are consolidating rewards across multi-brand portfolios.

“Loyalty in this region has come a long way in a short time. Ten years ago, the conversation was about points and rewards. Today it is about whether loyalty can become part of the payment journey, connect multiple brands and deliver a measurable commercial return,” said Mohan. He added:“Brands across the region are investing heavily in customer data and retention, and many are discovering that single-brand programs are not designed for today's broader ecosystems.”

The consultancy plans to work with regional clients on programme design, transformation and commercial modelling, expand its Dubai-based team, and increase the Middle East and North Africa region's contribution to 20 per cent of global revenue by 2028.

Philip Shelper, chief executive of Loyalty & Reward Co, said the Middle East stands out globally because loyalty programmes are increasingly being built around payments and interconnected customer ecosystems.

“The Middle East is one of the few markets where loyalty is being rebuilt around payments and ecosystems at the same time, and that is the work we do best,” he said.

MENAFN27082026000049011007ID1111586093