Middle East Loyalty Market Size & Forecast by Spend Value Across 100+ KPIs by Program Type, Channel Mix, Sector, Embedded Loyalty Penetration, and Platform Spend Segmentation - Databook Q1 2026 Update

The loyalty market in Middle East is expected to grow by 15.1% annually, reaching US$3.4 billion by 2026.

The loyalty market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 17.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 12.8% from 2026 to 2030. By the end of 2030, the loyalty market is projected to expand from its 2025 value of US$3.0 billion to approximately US$5.6 billion.

Key Trends and Drivers

• Loyalty is being embedded into national digital wallets and payment ecosystems
• Loyalty programs in the Middle East are increasingly designed as embedded layers within national digital wallets and payment apps rather than standalone schemes. In Saudi Arabia, stc pay integrates rewards across bill payments, merchant offers, and ecosystem services. In the UAE, ADNOC Distribution continues to link ADNOC Rewards directly with card-based and app-based payments across fuel and convenience retail.
• High wallet penetration, government-backed digital infrastructure, and a policy push toward cashless transactions are encouraging operators to treat loyalty as a default feature of payment usage. Retailers and mobility operators are prioritising reduced friction and higher frequency engagement through payments rather than separate loyalty journeys.
• Embedded loyalty is expected to become the dominant model in Saudi Arabia and the UAE. Standalone programs without payment integration are likely to lose relevance, while wallet-centric ecosystems gain bargaining power over merchants.

Retail groups are consolidating loyalty across multi-brand portfolios

• Large Middle Eastern retail groups are consolidating loyalty schemes across diversified brand portfolios to create cross-category earning and redemption. Majid Al Futtaim continues to operate SHARE as a unified loyalty layer spanning groceries, malls, fashion, and entertainment across the GCC. Alshaya Group has expanded cross-brand reward mechanics across its fashion and foodservice portfolio.
• Rising customer acquisition costs and fragmented brand engagement are pushing retailers to extract more lifetime value from existing customers. Group-wide loyalty enables internal traffic migration and improves visibility across consumer spend categories.
• Portfolio-level loyalty will intensify, particularly among mall-anchored and franchise-led retail groups. Single-brand schemes will increasingly be absorbed or deprioritised.

Coalition loyalty is aligning with lifestyle and urban consumption patterns

• Coalition loyalty programs in the Middle East are repositioning around everyday lifestyle spend rather than discretionary rewards. Programs tied to malls, fuel, foodservice, and transport are expanding earn-and-burn use cases. In the UAE, mall-led ecosystems anchored by Majid Al Futtaim increasingly link dining, cinema, and grocery rewards into a single value loop.
• Urban density, mall-centric consumption, and high frequency lifestyle spending create natural conditions for coalition models. Operators are prioritising relevance and repeat usage over aspirational rewards with low redemption frequency.
• Coalition loyalty will remain structurally strong in the UAE and Saudi Arabia, but weaker programs with limited daily relevance are likely to exit or merge into stronger ecosystems.

E-commerce and quick-commerce platforms are building proprietary loyalty layers

• Regional e-commerce platforms are developing in-house loyalty constructs tied to delivery frequency, subscriptions, and private-label ecosystems. Noon continues to integrate loyalty benefits across Noon Grocery, Noon Food, and its subscription services, positioning loyalty as an operational retention tool rather than a points-only program.
• Margin pressure in e-commerce and high churn in quick-commerce are forcing platforms to reduce dependency on discounting. Loyalty mechanisms are being used to lock in repeat usage and shift behaviour toward owned services.
• Platform-led loyalty will deepen, particularly in Saudi Arabia and the UAE. Traditional retail loyalty programs without delivery or subscription touchpoints will face relevance challenges.

Competitive Landscape

Intensity will rise around “ecosystem bundles” (payments, loyalty + subscriptions + partner marketplaces), led by Saudi Arabia and UAE. Coalitions will defend through banking alliances; wallets will compete via merchant-funded offers and instant redemption. Airline programs will keep expanding into everyday earn/burn (Saudi, Qatar, UAE), increasing pressure on standalone retail schemes.

Current State of the market

• Competition is shifting from “points programs” to ecosystem control: In Saudi Arabia and the UAE, loyalty is increasingly tied to payment rails, apps, and everyday services (fuel, grocery, mobility, bill-pay). This raise switching costs and concentrates share with operators that control high-frequency journeys.
• Two tracks dominate: (1) retailer-led coalition programs anchored by malls/grocery and (2) wallet/fintech-led offer-and-rewards layers embedded into payments and digital banking.

Key Players and New Entrants

• UAE: Majid Al Futtaim (SHARE) remains a core coalition player spanning Carrefour and mall-based experiences, while mobility-led loyalty is anchored by ADNOC Rewards (fuel/convenience).
• Saudi Arabia: Airline-led ecosystems (e.g., Saudia AlFursan) are broadening earn/burn beyond travel through local partnerships, while wallet ecosystems (e.g., stc’s financial services stack) push merchant-funded offers inside payment journeys.
• Qatar: Qatar Airways Privilege Club is extending loyalty into subscription-style accrual to lock in member engagement.
• New entrants: Expect more loyalty-tech and martech vendors to push into GCC via banks, airlines, and large retailers as they centralise customer data and orchestrate cross-partner rewards.

Recent Launches, Mergers, and Acquisitions

• UAE: ADNOC Distribution, FAB, and Mastercard launched the ADNOC Rewards Credit Card, tightening the link between card spend and redemption across mobility and convenience retail.
• UAE: Majid Al Futtaim launched the SHARE Credit Card with Emirates NBD, signalling deeper bank-loyalty integration.
• Saudi Arabia: Saudia expanded AlFursan’s partner reach (e.g., pharmacy loyalty linkage; hospitality tie-ups), reinforcing travel-to-lifestyle conversion.
• Market structure: Global loyalty-tech consolidation (e.g., Zeta’s acquisition of Marigold’s enterprise assets, including loyalty capabilities) is likely to influence vendor options and pricing across EMEA, including the Middle East.

This report provides a detailed data-centric analysis of the loyalty industry in Middle East, offering comprehensive coverage of both overall and alternative lending markets. It covers more than 100+ KPIs, including spend value on loyalty schemes, loyalty breakage rate, and penetration rate.

The report provides in-depth segmentation across the loyalty ecosystem, capturing loyalty spend value and breaking it down by core market dimensions. It classifies loyalty activity by program models (such as points, cashback, tiered, subscription, coalition, and gamified formats), membership structures, and execution channels (in-store, online, and mobile app), alongside embedded loyalty use cases integrated into payments, commerce, and platform ecosystems. The analysis further segments the market by industry verticals and assesses technology enablement, including AI-driven personalisation and emerging blockchain-led program mechanics. In addition, the dataset captures consumer demographics, enrolment pathways, and key program economics such as value accumulation, redemption, and breakage. Collectively, these datasets provide a comprehensive and quantifiable view of market size, structure, engagement behaviour, and value realisation dynamics within the loyalty market.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to deliver a detailed view of market performance, structural trends, and growth dynamics across the loyalty ecosystem, covering loyalty spend value, consumer engagement patterns, and channel execution.

This title is a bundled offering, combining the following 5 reports, covering 350+ tables and 500+ figures:

• Middle East Loyalty Market Business and Investment Opportunities Databook
• Israel Loyalty Market Business and Investment Opportunities Databook
• Saudi Arabia Loyalty Market Business and Investment Opportunities Databook
• Turkey Loyalty Market Business and Investment Opportunities Databook
• United Arab Emirates Loyalty Market Business and Investment Opportunities Databook

Report Scope

This report provides a detailed data-centric analysis of the loyalty industry, with comprehensive coverage across retail-sector context, loyalty spend dynamics, and loyalty platform economics. Below is a summary of key market segments:

Retail Sector Market Context

• Retail Industry Market Size, 2021-2030
• Ecommerce Market Size, 2021-2030
• POS Market Size Trend Analysis, 2021-2030

Loyalty Spend Market Size and Growth Dynamics

• Loyalty Spend Market Size and Future Growth Dynamics, 2021-2030
• Loyalty Spend on Schemes by Value Accumulated and Value Redemption Rate, 2025
• Loyalty Spend Share by Functional Domains, 2021-2030
• Loyalty Spend by Loyalty Schemes, 2021-2030
• Loyalty Spend by Loyalty Platforms, 2021-2030

Loyalty Schemes Spend Segmentation by Loyalty Program Type

• Point-based Loyalty Program
• Tiered Loyalty Program
• Mission-driven Loyalty Program
• Spend-based Loyalty Program
• Gaming Loyalty Program
• Free Perks Loyalty Program
• Subscription Loyalty Program
• Community Loyalty Program
• Refer a Friend Loyalty Program
• Paid Loyalty Program
• Cashback Loyalty Program

Loyalty Schemes Spend Segmentation by Channel

• In-Store
• Online
• Mobile

Loyalty Schemes Spend Segmentation by Business Model

• Seller Driven
• Payment Instrument Driven
• Other Segment

Loyalty Schemes Spend Segmentation by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Other

Sector × Channel Views: Loyalty Schemes Spend by Key Sectors and Channels

• Online Loyalty Spend by Sector, 2021-2030
• In-store Loyalty Spend by Sector, 2021-2030
• Mobile App Loyalty Spend by Sector, 2021-2030

Retail Sector Deep-Dive: Loyalty Schemes Spend by Retail Segment

• Diversified Retailers
• Department Stores
• Specialty Stores
• Supermarket and Convenience Store
• Other

Loyalty Schemes Spend Segmentation by Accessibility

• Card Based Access
• Digital Access

Loyalty Schemes Spend Segmentation by Consumer Type

• B2B Consumers
• B2C Consumers

Loyalty Schemes Spend Segmentation by Membership Type

• Free
• Free + Premium
• Premium

Loyalty Spend Split by Embedded vs. Non-Embedded Loyalty

• Embedded Loyalty Programs
• Non-Embedded Loyalty Programs

Loyalty Spend Split by Use of AI / Blockchain

• AI Driven Loyalty Program
• Blockchain Driven Loyalty Program

Loyalty Platform Spend Segmentation by Software Use Case

• Analytics and AI Driven
• Management Platform

Loyalty Platform Spend Segmentation by Vendor / Solution Partner

• In-house
• Third-Party Vendor

Loyalty Platform Spend Segmentation by Deployment

• Cloud
• On-Premise

Loyalty Platform Spend Segmentation by Offering

• Software
• Services
• Custom Built Platform vs. Off the Shelf Platform

Consumer Demographics & Behaviour (Loyalty Spend Share), 2025

• Age Group
• Income Level
• Gender

Loyalty Program KPIs, Behavioral Metrics & Embedded, 2025

• Primary Loyalty Motivation Split Analysis
• Loyalty Program Breakage Rate Analysis
• Loyalty Program Enrollment Channel Mix Analysis
• Embedded Loyalty Penetration by Channel

Reasons to Buy

• Comprehensive Market Intelligence: Gain a comprehensive view of the loyalty market by quantifying total loyalty spend value and its composition across loyalty schemes and loyalty platforms, supported by retail context indicators to benchmark market scale, structure, and growth dynamics.
• Granular Loyalty Spend Coverage: Analyze loyalty spend value across loyalty schemes and loyalty platforms, supported by structured segmentation across program types (e.g., point-based, tiered, cashback, subscription, community, gaming, mission-driven, paid, and referral-led formats).
• Channel and Sector-Level Execution Insights: Evaluate how loyalty spend is distributed across in-store, online, and mobile channels, and across key verticals including Retail, Financial Services, Healthcare & Wellness, Restaurants & Food Delivery, Travel & Hospitality, Telecoms, and Media & Entertainment, with dedicated sector × channel views.
• Program Structure and Participation Mix: Understand how loyalty schemes differ by business model (seller-driven vs. payment-instrument-driven), accessibility (card-based vs. digital), consumer type (B2B vs. B2C), and membership type (free, premium, and free+premium), enabling more precise program design and competitive benchmarking.
• Embedded Loyalty and Emerging Mechanisms Tracking: Assess the evolution of embedded vs. non-embedded loyalty and track spend splits linked to program enablement, including AI-driven and blockchain-driven loyalty program spend where captured in the dataset.
• Platform Spend and Vendor/Deployment Benchmarking: Benchmark loyalty platform economics by software use case (analytics/AI-driven vs. management platforms), solution partner model (in-house vs. third-party), deployment (cloud vs. on-premise), and offering mix (software vs. services; custom-built vs. off-the-shelf).
• Consumer Demographics and Program KPI Lens: Access loyalty spend share by age, income, and gender, alongside decision-critical program KPIs such as loyalty penetration (% of retail sales under loyalty), primary motivation split, breakage rate, enrollment channel mix, and embedded loyalty penetration by channel.
• Decision-Ready Databook Format with 100+ KPIs: Leverage a structured dataset with historical and forecast coverage through 2030, designed for direct integration into market models, strategic planning, and executive presentations by retailers, platforms, payment providers, technology vendors, and investors.