The Middle East loyalty market is forecast to grow from US$3.4 billion in 2026 to US$5.6 billion by 2030, representing a compound annual growth rate of 12.8 per cent, according to ResearchAndMarkets.com. Over the same period the UAE market is forecast to reach US$592.4 million and Saudi Arabia US$1.27 billion.
As investment in customer retention and personalization accelerates, several trends are reshaping loyalty across the region, creating a growing need for specialist expertise:
- Loyalty program design continues to evolve: Competition across the region is focusing on owning everyday customer journeys, with rewards tied to fuel, grocery, mobility, and bill payment.
- AI is driving rapid change: The application of AI across loyalty ecosystems is delivering personalization of communications, offers and experiences at scale across physical and digital channels. Knowing how to use the technology is key.
- Loyalty is being embedded in payments and digital wallets: Programs are increasingly being designed as a layer inside national wallets and payment apps. Loyalty programs combined with digital wallets, co-brand credit cards, and payment apps are expected to become the dominant model across the region, and programs without payment integration risk losing relevance.
- Retail groups are building multi-brand ecosystems: Large regional groups are consolidating loyalty across diversified portfolios so members can earn and redeem across grocery, malls, fashion, dining, and entertainment. Strategic partnerships are a critical element to enable bespoke experiences and support brand differentiation
- Ecommerce and quick-commerce platforms are building their own loyalty layers: Margin pressure and high churn are pushing platforms to reduce their reliance on discounting, using efficient rewards, subscriptions, and delivery benefits to stimulate repeat behaviour instead.
Commercial pressures are also driving change. Customer acquisition costs are rising, competition for a finite share of customer spend is intensifying, and businesses across the region are directing capital towards customer data and retention. Loyalty is being treated as a strategic growth tool, and senior management and boards want to know what the program will cost, expected returns, liability management and which capabilities should be developed internally rather than outsourced.
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. 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. Loyalty & Reward Co bring proven design frameworks and commercial modelling from more than 160 projects globally, without a proprietary technology platform of their own to sell. That independence is critical when boards are making significant investment decisions around loyalty.
By Krishna Mohan, Loyalty Director (MENA), Loyalty & Reward Co