Middle East Loyalty Programs Market Report 2025 Growth Trends & Forecasts to 2029
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 – Q1 2025 Update” report has been added to offering.
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across various end-use sectors and market segments in the Middle East. With over 50 KPIs at the country and regional levels, this report delivers a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.
Market Overview and Growth Projections
The loyalty market in the Middle East is expected to grow by 16.3% annually, reaching a valuation of US$3.27 billion in 2025. Between 2020 and 2024, the market recorded a CAGR of 18.3%. Over the next five years, this growth trend is expected to continue, with a forecasted CAGR of 13.8% during 2025-2029. By 2029, the Middle East Loyalty market is projected to expand from US$2.81 billion in 2024 to US$5.49 billion.
Key Insights Driving Loyalty Program Evolution
Loyalty programs in the Middle East are evolving beyond traditional points-based models. Digital, coalition, and subscription-based systems are gaining prominence. Emerging technologies such as AI-driven personalization, ESG incentives, and blockchain innovations are shaping the future of customer engagement. Additionally, financial inclusion efforts are broadening the reach of loyalty initiatives. Businesses leveraging these trends will enhance customer retention and strengthen 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. Prominent examples include Carrefour’s MyCLUB and Al-Futtaim’s Blue Rewards in the UAE, as well as Tamayouz by STC Pay in Saudi Arabia. Vodafone Qatar’s Red Loyalty Program provides digital-first rewards linked to customer usage patterns.
Several factors drive the adoption of digital loyalty programs, including smartphone penetration exceeding 90% in the UAE and Saudi Arabia, rapid digital transformation, and consumer preferences for convenience. Additionally, the rise of e-commerce and mobile payment adoption encourages brands to integrate digital rewards into their platforms.
As more brands transition towards digital loyalty ecosystems, AI-driven personalization, gamification, and real-time rewards will play a crucial role in enhancing customer engagement. Companies will increasingly rely on in-app engagement tools such as push notifications and AI-powered recommendations to boost customer retention.
Growth of Coalition Loyalty Programs Across Multiple Sectors
Coalition loyalty programs, where multiple brands collaborate to offer shared rewards, are gaining traction in the Middle East. The UAE’s Etihad Guest allows customers to earn and redeem points across partner airlines, hotels, and retail outlets. Similarly, STC’s Qitaf Program in Saudi Arabia integrates major telecom, retail, and dining brands, while 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 their customer reach while offering greater flexibility in reward redemption. Given the increasing spending power of Middle Eastern consumers, coalition models are becoming more attractive.
Future developments will see coalition loyalty programs becoming more integrated, particularly in financial, travel, and retail sectors. The emergence of super apps and cross-sector collaborations will enhance value propositions, allowing customers to earn and redeem points across an extensive network of businesses.
Rise of Subscription-Based Loyalty Models
Subscription-based loyalty models, where customers pay a recurring fee for premium benefits, are becoming increasingly popular 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 in Qatar offers free delivery and exclusive restaurant deals for a monthly fee.
The demand for convenience, premium services, and exclusive deals fuels the adoption of subscription-based loyalty. Consumers in the Middle East are willing to pay for VIP experiences, evident from the success of airline and hospitality loyalty tiers. Additionally, digital payments and auto-renewal subscription models contribute to this trend.
Going forward, industries such as retail, telecom, and entertainment will introduce subscription-based loyalty tiers. Businesses will focus on providing 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 utilizes customer purchase history to offer customized discounts, while Jarir Bookstore in Saudi Arabia employs 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 facilitate personalized loyalty experiences. Additionally, Middle Eastern consumers expect tailored rewards and exclusive offers, compelling businesses to enhance their data-driven strategies.
Looking ahead, AI-powered loyalty programs will become more widespread. Businesses will leverage predictive analytics for refined customer segmentation and engagement, offering hyper-personalized deals and dynamic rewards based on real-time data tracking.
Expansion of ESG-Driven Loyalty Initiatives
Environmental, social, and governance (ESG) principles are being integrated 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 dominance of digital-first and app-based loyalty programs: Leading players like Al-Futtaim’s Blue Rewards, Carrefour MyCLUB, and Etihad Guest set a high competitive benchmark by offering seamless app-based engagement.
- Coalition and industry-specific competition: STC Qitaf, Air Miles Middle East, and NEOM’s loyalty plans compete with individual brands like Jarir Bookstore and Lulu Hypermarket.
- Banking and fintech competition: Emirates NBD, Al Rajhi Bank, and Qatar National Bank offer tiered cashback and points-based loyalty programs, while fintech startups like Tabby and Tamara integrate rewards into BNPL and digital payment ecosystems.
Market Consolidation Trends
- UAE and Saudi Arabia lead in market consolidation, while other regions remain fragmented.
- Super apps drive partial consolidation in mobility and fintech loyalty programs.
- Banking and travel loyalty programs are consolidating through strategic partnerships.
- Government regulations influence financial loyalty programs, affecting new entrants.
- High brand loyalty among Middle Eastern consumers makes market penetration challenging.
The Middle East’s loyalty programs market is undergoing rapid transformation, with digital-first models, AI-driven personalization, coalition programs, and ESG incentives shaping the future. Businesses that align with these trends will enhance customer engagement, brand loyalty, and long-term revenue growth.
