The loyalty market across the Middle East continues to expand rapidly
Every year, Ramadan reshapes consumer behavior across the GCC, inspiring generosity, reflection, and deeper community engagement, while also accelerating spending, loyalty participation, and the adoption of innovative incentive strategies, according to a recent Loylogic report.
During Ramadan, loyalty programs across the Middle East capitalize on seasonal spending, with retail, travel, and banking poised for record engagement. Building on 2025–2026 market trends, programs that leverage digital adoption, personalized rewards, and coalition partnerships are expected to drive stronger customer retention and higher transaction volumes during the holy month.
Loyalty initiatives, whether through gift cards, tiered rewards, points, programs, experiences, or exclusive offers, become powerful tools to connect with consumers during this period.
Strategic moment
“Ramadan is a strategic moment to reaffirm value with your most engaged customers,” explained Gabi Kool, CEO of Loylogic. “Loyalty performs best when integrated into a holistic incentive approach that respects cultural sentiment and rewards customer commitment with relevance and respect,” he continued.
The loyalty market across the Middle East continues to expand rapidly. It is projected to grow 16.3% in 2025, reaching approximately US$ 3.27bn, up from US$ 2.81bn in 2024. In the UAE alone, loyalty programmes are expected to grow 16.1% to about US$ 490.8mn in 2025 with strong gains expected through 2028.
The regional loyalty market is forecast to maintain double-digit growth, of ~13.8% CACR through 2029 as digital, coalition, and personalized models broaden customer engagement opportunities.
Transactional perks
Consumers increasingly seek experiences over transactional perks, particularly among younger segments such as Gen Z, with modern loyalty strategies blending points, exclusive experiences, cultural events, personalized offers, and meaningful partnerships.
“When brands design incentive ecosystems that combine experiential value, aspirational rewards, and seamless digital delivery, they create emotional connection driving both immediate engagement and sustained lifetime loyalty,” added Kool.
Sector highlights
Retail: Personalized Rewards Drive Ramadan spending
Retail loyalty programs, the largest contributor to regional activity sees heightened engagement as consumers shop for groceries, gifts, and fashion. App-based and mobile wallet integrations enable real-time rewards, while multi-brand coalition programs allow customers to redeem points seamlessly across stores and e-commerce platforms.
Travel & Hospitality: Experiential loyalty peaks
Domestic and regional travel during Ramadan fuels airline and hotel loyalty programs, with tiered rewards, exclusive iftar experiences, and partner promotions gaining traction. The Middle East travel loyalty market is estimated at ~US$ 1.14bn in 2025, led by the UAE and Saudi Arabia. Programs offering cross-industry perks are expected to achieve the highest redemption rates.
Banking & Financial Services: Rewards embedded in everyday spending
Banks and fintech platforms encourage card and digital wallet usage during Ramadan. Credit card rewards, BNPL programs, and partner offers enable consumers to earn points on essential and seasonal purchases, boosting engagement and transaction frequency.
