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 - Q1 2025 Update

According to PayNXT360, 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 the country 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.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Key Insights

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.

Competitive Landscape and Regulatory Changes in the UAE Loyalty Market

The UAE loyalty market is dynamic and competitive. It is dominated by large players in aviation, retail, and banking but fragmented in other sectors like e-commerce. While established brands leverage their scale, partnerships, and digital infrastructure to maintain a competitive edge, smaller players face significant challenges, including high customer acquisition costs and the need for technological innovation. The competitive intensity is expected to increase, with more players adopting AI-driven personalization and forming coalitions to enhance their market position.

Regulatory changes, such as the PDPL, have introduced both business challenges and opportunities. While compliance with data protection regulations has raised operational costs, it has also strengthened consumer trust in loyalty programs. Fintech-friendly policies foster innovation, enabling seamless rewards integration with digital payment systems. Over the next few years, the market will see a combination of consolidation, heightened competition, and greater alignment with regulatory frameworks, creating a more mature and customer-centric loyalty ecosystem.

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.

Type of Players and Market Entry Challenges

• The UAE loyalty market includes multinationals, regional powerhouses, and smaller local businesses. Multinationals bring advanced technology and strong funding, while regional players leverage deep knowledge of local markets and consumer preferences. This diversity creates both opportunities and challenges for businesses across the spectrum.
• New players face high barriers to entry, including the cost of customer acquisition and the need for advanced technology to deliver digital-first, personalized rewards. Dominant incumbents with established customer bases and strong ecosystem partnerships further intensify competition. The UAE’s affluent demographic also demands premium experiences, making it tough for less innovative players to compete without significant investment.
• Banking loyalty programs, such as FAB Rewards and Emirates NBD Plus Points, gain an advantage through integration with payment systems. These programs offer seamless earning and redemption processes, driving customer engagement. Their co-branded strategies highlight the benefits of partnerships in strengthening competitive positioning.

Regulatory Changes in the Last 12 Months

• The UAE’s Personal Data Protection Law (PDPL) mandates businesses to prioritize customer data privacy through explicit consent, encryption, and transparency. This has significantly impacted loyalty programs, which heavily rely on data for analytics and personalization. Compliance has increased operational costs but enhanced consumer trust in secure programs.
• Initiatives like the UAE Central Bank’s ""FinTech Abu Dhabi"" have enabled smoother integration of loyalty programs with digital wallets and payment platforms. These frameworks support innovation, allowing companies to enhance customer experiences through real-time rewards and secure transactions.
• Compliance with the PDPL requires data management and training investments, raising business costs. Companies without robust data security measures face non-compliance, fines, and reputational damage risks. Ensuring third-party partners adhere to the same standards adds complexity.
• Over the next 2-4 years, stricter data privacy regulations and a focus on fintech innovation will continue to shape the market. Companies that prioritize secure data practices and integrate fintech solutions effectively will gain a competitive edge. Such efforts will drive customer loyalty and long-term growth.

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.

Scope

This report provides in-depth, data-centric analysis of loyalty programs in United Arab Emirates. Below is a summary of key market segments:

• United Arab Emirates Retail Sector Spend Value Trend Analysis
Ecommerce Spend
POS Spend

United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in United Arab Emirates

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
Loyalty Schemes
Loyalty Platforms

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
Points programs
Tier-based programs
Mission-driven programs
Spend-based programs
Gaming programs
Free perks programs
Subscription programs
Community programs
Refer a friend program
Paid programs
Cashback programs

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Channel
In-Store
Online
Mobile

United Arab Emirates Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
Seller Driven
Payment Instrument Driven
Others

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

•United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App
Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment
Others

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Retail
Diversified Retailers
Department Stores
Specialty Stores
Clothing, Footwear & Accessories
Toy & Hobby Shops
Supermarket and Convenience Store
Home Merchandise
Other

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
Card Based Access
Digital Access

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
B2C Consumers
B2B Consumers

• United Arab Emirates Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
Free
Free + Premium
Premium

• United Arab Emirates Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
Analytics and AI Driven
Management Platform

• United Arab Emirates Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
In House
Third Party Vendor

• United Arab Emirates Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
Cloud
On-Premise

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
Software
Services

• United Arab Emirates Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
Custom Built Platform
Off the Shelf Platform

• United Arab Emirates Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour
By Age Group
By Income Level
By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.

• In-depth Understanding of Loyalty Market Dynamics in United Arab Emirates: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.

• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.

• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in United Arab Emirates. Formulate your strategy by gaining insights into the current structure of the market.

• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.

• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments. Show more