Middle-East Gift Card and Incentive Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Market Overview

The Middle-East Gift Card and Incentive Card Market had moderately affected by COVID-19 as it accelerated the cashless system that was propelled during the Pandemic. The COVID crisis accelerated digitalization by forcing merchants, programs, and customers to adapt to lockdown restrictions. Adoption of e-Gift cards increased by over 250% in the first quarters of 2020, compared to the same period in 2019.

The gift card market in the Middle East region has witnessed strong growth over the last few years. Adoption of the gift card has increased across retail and corporate segments with a range of use cases that go beyond “gifting”. One of the factors driving growth is the e-commerce market. Merchants are incentivizing customers for shopping online and offering gift cards to increase sales and drive customer loyalty. The vast majority of the population is working class, with a high smartphone and internet penetration rate. The retail landscape is well diversified from high-end to mass retail brands, with a large representation of international brands, together with locally-developed concepts. In 2020, the growth of digital gift cards was further expanded, with a shift to digital standing now at over 90% of the customers’ redemption in our B2B programmes. The COVID crisis accelerated further digitalisation by forcing merchants, programmes and customers to adapt to lockdown restrictions. Adoption of e-Gift cards have increased by over 250% in the first quarters of 2020, compared to the same period in 2019.

Scope of the Report

A gift card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases. Incentive Card is distributed for loyalty, award, incentive or promotional purposes and funded by a business and not available for purchase by the general public Middle East Gift Card and Incentive Card Market Is Segmented By Product Type (Food & Beverage, Health, Wellness & Beauty, Apparel, Footwear & Accessories, Books & Media Products, Consumer Electronics, Restaurants & Bars, Toys, Kids, and Babies, Jewelry, Sporting Goods, Home & Kitchen Accessories & Appliances, Travel, Entertainment & Gaming, Other), By Distribution Channel (Gift Card Online Sales, Gift Card Offline Sales, 1st Party Sales, 3rd Party Sales, Sales Uplift), and By End User(Retail and Corporate).

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Key Market Trends

Rise in E-Commerce in the Middle East Region

The strong growth in the e-commerce sector primarily supported the overall gift card industry during 2020, a trend expected to continue over the forecast period. Increasing smartphone penetration and consumer’s inclination towards online shopping has positively impacted e-commerce sector. In Middle-East, the growth in the e-commerce market is one of the factors driving gift card market growth in the country. With growing online sales the spending on gift cards is also likely to increase in the country. Corporates and individual customers have both identified various ways to use Gift cards and Incentive cards over the last several months; from traditional incentives and rewards to sending Eidiya or just helping the ones in need during the pandemic.

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