Middle East Gift Card and Incentive Card Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Middle East Gift Card And Incentive Card Market Trends

Strong Growth in E-Commerce Market Driving Gift Card Industry Growth

The substantial growth of the e-commerce sector has emerged as a primary catalyst propelling the digital gift card market in the Middle East region. The digital transformation of retail has fundamentally altered consumer shopping behaviors, with e-commerce platforms becoming increasingly integrated into daily purchasing decisions. According to recent data, in the UAE alone, e-commerce revenue across various segments like fashion, electronics, and beauty products has shown remarkable growth, with fashion accounting for the highest share at 38% of total e-commerce revenue in 2022. This digital retail expansion has created new opportunities for store gift card integration, as retailers leverage gift cards to enhance customer engagement across both online and offline channels.

The evolution of payment preferences in the digital commerce landscape has further accelerated gift card adoption. In 2022, digital and mobile wallets accounted for 16% of e-commerce transactions in the region, while credit cards maintained a 40% share of point-of-sale transactions. This shift towards digital payment methods has created a natural ecosystem for merchant gift card offerings to flourish, particularly as retailers integrate gift card functionality into their e-commerce platforms. Additionally, the rise of omnichannel retail experiences has made gift cards an attractive option for both merchants and consumers, serving as a bridge between online and offline shopping experiences while providing valuable customer data and encouraging repeat purchases.

Increasing Consumer Digital Engagement and Changing Shopping Behaviors

The transformation in consumer shopping behavior, particularly through mobile devices, has created a robust foundation for digital gift card market growth. According to recent studies, 65% of consumers in the UAE used smartphones during their shopping journeys, with 25% actively using their devices for price comparisons and 20% searching for valid coupons and discounts while in stores. This high level of digital engagement has made e-gift cards increasingly attractive to consumers who value convenience and immediate delivery options. Furthermore, retailers have responded to this trend by offering enhanced digital gift card experiences, including personalization options and seamless integration with mobile payment systems.

The evolution of consumer preferences has also led to innovative applications of gift cards beyond traditional gifting occasions. Retailers in the Middle East are increasingly offering promotional features through their gift card programs, with 62.4% of merchants providing promo codes and 59.2% offering digital coupons to enhance customer engagement. This trend is particularly evident in the adoption of closed digital wallets, where consumers can store and manage their gift card balances alongside other payment methods. The integration of gift cards with loyalty card programs and rewards systems has created a more comprehensive value proposition for consumers, with 51.4% of merchants now offering rewards programs that incorporate reward card functionalities. These developments have transformed gift cards from simple gifting tools into sophisticated instruments for customer engagement and retention.

Segment Analysis: By Consumer

Corporate Segment in Middle East Gift Card and Incentive Card Market

The corporate segment dominates the Middle East gift card and incentive card market, commanding approximately 72% of the market share in 2024. This segment's prominence is driven by the widespread adoption of corporate incentive cards and employee recognition cards programs across both small and large enterprises in the region. Organizations are increasingly leveraging gift cards for employee recognition, customer loyalty programs, and business partnerships. The segment's growth is particularly notable in the UAE and Saudi Arabia, where businesses are incorporating digital gift card solutions into their employee engagement initiatives. Corporate gift cards are being redesigned and personalized to meet specific business needs, offering organizations an ideal opportunity to enhance brand equity while fostering loyalty among staff, clients, and partners. The segment is witnessing strong traction in both traditional retail gift cards and digital solutions, with many companies transitioning to digital formats for easier distribution and tracking. Furthermore, the corporate segment's robust performance is supported by the increasing integration of gift card programs with corporate wellness and recognition platforms, making them an essential tool for modern business operations in the Middle East.

Individual Segment in Middle East Gift Card and Incentive Card Market

The individual segment represents a significant portion of the market, driven by the growing consumer preference for gift cards as a convenient and flexible gifting option. This segment is experiencing substantial transformation with the proliferation of third-party gift card shops and online reseller channels, which have integrated gift cards and e-gift cards as core components of their product offerings. The emergence of new consumption categories, including gaming, OTT platforms, and subscription services, is encouraging both self-use and gifting applications among individual consumers. Middle Eastern retailers are leveraging digital gift card programs to expand their consumer base and increase brand visibility, with many implementing innovative features such as personalized messaging and instant digital delivery. The segment is particularly active during major cultural and religious celebrations, such as Eid al-Fitr and other regional festivities, where gift cards have become an increasingly popular gifting choice. Additionally, retailers are using gift cards strategically to enhance customer experience and resolve service issues, recognizing their value in maintaining customer relationships and ensuring repeat business.

Segment Analysis: By Distribution Channel

Online Segment in Middle East Gift Card and Incentive Card Market

The online distribution channel dominates the Middle East gift card and incentive card market, commanding approximately 90% of the market share in 2024. This segment's prominence is driven by the rapid digitalization and increasing internet penetration across the region, particularly in countries like the UAE and Saudi Arabia. The convenience of purchasing gift cards through digital platforms, coupled with the growing e-commerce sector, has significantly contributed to this segment's dominance. The segment is also experiencing the fastest growth trajectory, with a projected growth rate of around 22% during 2024-2029. This exceptional growth is fueled by the increasing adoption of mobile payment solutions, the rise of digital wallets, and the expanding presence of major e-commerce platforms in the region. Furthermore, the shift in consumer preferences towards contactless and digital payment methods, especially among the young and tech-savvy population in the Middle East, continues to drive the growth of online gift card distribution.

Offline Segment in Middle East Gift Card and Incentive Card Market

The offline distribution channel, while smaller in market share, continues to maintain its relevance in the Middle East gift card and incentive card market. This segment primarily operates through traditional retail outlets, shopping malls, and physical store locations, offering customers the tangible experience of purchasing gift cards. The segment benefits from the strong retail culture in countries like Saudi Arabia and Dubai, where shopping malls and retail stores serve as key distribution points for gift cards. The presence of major retail chains and their extensive network of physical stores continues to support the offline segment's growth. Additionally, the segment caters to customers who prefer the traditional shopping experience and value the ability to physically inspect and purchase gift cards. The integration of omnichannel strategies by retailers, combining both online and offline presence, has helped maintain the relevance of physical distribution channels in the gift card market.

Segment Analysis: By Type

E-Gift Card Segment in Middle East Gift Card and Incentive Card Market

The e-gift card segment has emerged as the dominant force in the Middle East gift card and incentive card market, commanding approximately 93% of the total market share in 2024 while also demonstrating the strongest growth trajectory with a projected growth rate of around 22% during 2024-2029. The segment's dominance is primarily driven by the increasing adoption of digital payment solutions and the growing preference for contactless transactions across the region. The surge in e-commerce activities, particularly in countries like the UAE and Saudi Arabia, has significantly contributed to the segment's growth. Additionally, the convenience of instant delivery, customization options, and the ability to send e-gift cards across borders have made them increasingly popular among both individual consumers and corporate clients. The segment has also benefited from the rising penetration of smartphones and internet connectivity in the region, making e-gift cards more accessible to a broader consumer base. Major retailers and e-commerce platforms in the Middle East have expanded their e-gift card offerings, incorporating features like personalized messages and flexible redemption options to enhance the digital gifting experience.

Physical Card Segment in Middle East Gift Card and Incentive Card Market

While the physical gift card segment represents a smaller portion of the market, it continues to maintain its relevance in the Middle East gift card and incentive card market, particularly in traditional retail settings and for specific consumer segments who prefer tangible gifting options. Physical gift cards are still valued for their tangible nature and visual appeal, making them popular choices for special occasions and traditional gifting ceremonies that are an integral part of Middle Eastern culture. The segment benefits from the strong retail culture in countries like Saudi Arabia and Dubai, where shopping malls and retail stores offer a wide variety of physical gift card options. These cards are often preferred for their ability to provide a more personal and traditional gift-giving experience, especially during major holidays and celebrations such as Eid al-Fitr and Ramadan. Retailers have also enhanced the appeal of physical gift cards through attractive packaging options and special edition designs that cater to various occasions and cultural preferences.

Middle East Gift Card and Incentive Card Market Geography Segment Analysis

Gift Card and Incentive Card Market in Saudi Arabia

Saudi Arabia stands as the dominant force in the Middle East gift card and incentive card market, commanding approximately 63% of the regional market share in 2024. The kingdom's retail sector plays a pivotal role in driving retail gift card adoption, particularly through supermarkets, hypermarkets, and food and restaurant chains. The closed-loop gift card segment maintains a strong presence in the market, offering businesses unique advantages such as revenue generation from product purchases and free activation for users. The growing penetration of supermarkets and hypermarkets has significantly contributed to higher gift card adoption compared to corporate or government institutions. With several gifting occasions throughout the year, Saudi Arabia's gift card market demonstrates substantial growth potential, with adoption increasing notably in Tier 2 and Tier 3 cities, although Tier 1 cities continue to dominate. The wide acceptance of corporate gift card as rewards and sales incentives to recognize employee performance further strengthens the market position.

Gift Card and Incentive Card Market in United Arab Emirates

The UAE's gift card and incentive card market is projected to grow at approximately 21% CAGR from 2024 to 2029, establishing itself as the fastest-growing market in the region. The country's innovative and expanding fintech landscape serves as a primary catalyst for the gift card industry's growth, alongside increasing consumer preference for this payment method. The UAE's highly connected and young population, with a median age of just 33 years, has embraced digital commerce as a way of life, pushing the boundaries of cross-channel commerce. The market has witnessed significant transformation in consumer behavior, with smartphones playing a crucial role in enhancing shopping journeys. UAE shoppers demonstrate remarkable omnichannel and mobile-centric characteristics, with 59% using smartphones while shopping in physical stores. The surge in contactless payments and the growing preference for digital gift card reflect the market's progressive nature and technological adoption. The introduction of electronic gift card solutions has further accelerated this trend, offering consumers a seamless and convenient shopping experience.

Gift Card and Incentive Card Market in Other Middle Eastern Countries

The gift card and incentive card market across other Middle Eastern countries, including Iran, Israel, Jordan, Iraq, Egypt, Qatar, and Bahrain, demonstrates diverse growth patterns and adoption rates. These markets are characterized by varying levels of digital infrastructure development and consumer preferences. Qatar's merchants, for instance, are increasingly leveraging digital gift card solutions to capture new business opportunities and enhance customer loyalty. The fintech space across these countries has become increasingly competitive, attracting partnerships aligned with the growing digital age. The trend is particularly evident in the gift card space, where businesses from hospitality to retail are recognizing the importance of digital presence. Many of these markets are witnessing a shift in consumer behavior, with younger demographics driving the adoption of digital payment solutions. The regulatory frameworks in these countries continue to evolve, creating more structured environments for gift card operations and digital payments. Additionally, the introduction of branded gift card offerings is gaining traction, providing consumers with more personalized gifting options.