Middle East Gift Card And Incentive Card Market Size
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 23.83 Billion |
Market Size (2030) | USD 62.32 Billion |
CAGR (2025 - 2030) | 21.20 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Middle East Gift Card And Incentive Card Market Analysis
The Middle East Gift Card And Incentive Card Market size is estimated at USD 23.83 billion in 2025, and is expected to reach USD 62.32 billion by 2030, at a CAGR of 21.2% during the forecast period (2025-2030).
The Middle East gift card and incentive card market is experiencing a significant digital transformation, driven by the region's rapidly evolving e-commerce landscape and changing consumer preferences. According to recent market research, 72% of consumers in the United Arab Emirates now prefer electronic gift cards over traditional physical gift cards, highlighting the strong shift towards digital solutions. This transformation is further evidenced by the substantial growth in e-commerce revenues, with the UAE market expected to reach USD 16.37 billion by 2027 and Saudi Arabia projected to achieve USD 20.16 billion in the same period. The increasing smartphone penetration and internet connectivity across the region have created a robust foundation for digital gift card adoption.
Consumer behavior in the Middle East demonstrates a strong appetite for gift card solutions, with varying preferences across different markets. In Saudi Arabia, 76% of gift card recipients redeem their cards within a month of receiving them, indicating high engagement and utilization rates. The UAE market shows particularly strong adoption, with 60% of residents having purchased virtual gift cards in the past year, spending an average of AED 236 per transaction. These trends are reshaping how retailers and service providers approach their retail gift card strategies, leading to more innovative and customer-centric solutions.
The market is witnessing significant developments in retail partnerships and technological integration. In April 2023, Amazon.ae collaborated with the Rashid Centre for People of Determination to launch special electronic gift cards featuring artwork designed by students, demonstrating the industry's move towards more inclusive and socially conscious initiatives. Similarly, ILA Bank in Bahrain has expanded its gift card offerings through partnerships with major retailers and merchants, providing customers access to stored value cards for stores in City Center Bahrain, Sharaf DG, and various other establishments across the region.
Corporate adoption of gift card programs has emerged as a crucial market driver, with businesses increasingly utilizing corporate gift cards for employee rewards, customer loyalty programs, and business incentives. The B2B segment has witnessed notable innovation, particularly in the development of digital solutions that offer greater flexibility and customization options. YouGotaGift, a leading player in the region, has launched the first multi-brand eGift Card called HappyYOU, which is redeemable across multiple partner brands in the UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, and Egypt, demonstrating the market's evolution towards more versatile and integrated solutions.
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.
Middle East Gift Card And Incentive Card Industry Overview
Top Companies in Middle East Gift Card and Incentive Card Market
The Middle East gift card and incentive card market features prominent players like Carrefour SA, Qwikcilver, TDS Gift Cards, Amazon, Inter IKEA Systems BV, and other regional players. Companies are increasingly focusing on the digital transformation of gift card solutions, with many transitioning from physical to digital gift card formats to meet evolving consumer preferences. Strategic partnerships between retailers and gift card technology providers have become commonplace to enhance distribution networks and improve customer experience. Market leaders are investing in advanced technologies to offer personalized solutions, integrate with digital wallets, and provide omnichannel experiences. Companies are also expanding their presence through cross-border collaborations and localized offerings tailored to Middle Eastern cultural preferences and occasions.
Dynamic Market with Growing Regional Focus
The Middle East gift card market exhibits a moderately fragmented structure with a mix of global retail giants and specialized gift card solution providers. Global players like Amazon and Carrefour leverage their extensive retail networks and brand recognition to maintain strong market positions, while regional specialists like YouGotaGift and Mall Gift Card capitalize on their local market understanding and customized offerings. The market has witnessed significant consolidation through strategic mergers and acquisitions, exemplified by the merger between Qwikcilver Solutions and Pine Labs, which has created a more integrated gift card ecosystem in the region.
The competitive dynamics are shaped by the increasing participation of diverse retail sectors, including travel agencies, OTT platforms, and mobile payment organizations. Local players are gaining prominence through innovative solutions tailored to regional preferences, such as Eidiya virtual gift card gifts and corporate reward programs. The market is experiencing a transformation with the entry of new players attracted by the growing profitability and digital payment adoption, leading to increased competition and service diversification.
Innovation and Localization Drive Future Success
Success in the Middle East gift card market increasingly depends on technological innovation, customer experience enhancement, and cultural adaptation. Incumbent players must focus on developing integrated digital solutions, expanding their merchant networks, and offering value-added services such as analytics and customer engagement tools. Companies need to strengthen their cybersecurity measures and ensure compliance with evolving regional regulations while maintaining operational efficiency and service quality.
Market contenders can gain ground by focusing on niche segments, developing specialized solutions for corporate clients, and leveraging partnerships with local retailers and financial institutions. The relatively low threat of substitution products provides opportunities for market expansion, though companies must navigate varying levels of digital payment adoption across different Middle Eastern countries. Success also hinges on understanding and adapting to regional cultural nuances, religious considerations, and seasonal gifting patterns while maintaining strong relationships with both corporate and individual customers. Additionally, the introduction of stored value card solutions and merchant gift card offerings can further enhance market penetration and customer loyalty.
Middle East Gift Card And Incentive Card Market Leaders
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Carrefour SA
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T Choithram & Sons
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Sharaf DG LLC
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Damas International Ltd
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Landmark Group
*Disclaimer: Major Players sorted in no particular order
Middle East Gift Card And Incentive Card Market News
- January 2024: Choithrams expanded its presence in Dubai by opening eight 24-hour convenience stores within Rove Hotels. This strategic move caters to tourists and residents, enhancing the company's reach across the city. The expansion aligns with Choithrams' mission to become the region's preferred retail brand, offering fresh food and essential items in prime locations.
- May 2023: Carrefour entered the Israeli market by opening 50 stores through a franchise agreement with Electra Consumer Products. The stores offer a wide range of products, including over 400 Carrefour-branded items with kosher certification. This expansion aims to assist Israeli consumers amid the ongoing cost-of-living crisis. Carrefour plans to continue its growth in Israel, targeting the opening of 100 additional stores by 2024.
Middle East Gift Card And Incentive Card Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Defination
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 The Cultural Significance Of Gifting During Religious And Social Occasions Drives Demand For Gift Cards, Especially Through Offline Channels.
4.2.2 The Expansion Of Retail Chains And Shopping Malls In The Region Boosts The Availability And Variety Of Gift Cards, Both Online And Offline.
4.3 Market Restraints
4.3.1 In Many Parts Of The Middle East, Cash Is Still Preferred Over Gift Cards, Particularly For Certain Cultural And Religious Occasions, Limiting The Market'S Growth Potential.
4.3.2 Differences In Regulations Across Middle Eastern Countries Can Complicate The Distribution And Redemption Of Gift Cards, Particularly For Cross-Border Transactions.
4.4 FUTURE TRENDS AND MARKET OPPORTUNITIES
4.4.1 Increased Corporate Focus On Employee Engagement And Loyalty In The Middle East Boosts Demand For Incentive Cards, Creating Opportunities For Tailored Solutions.
4.4.2 E-commerce Growth Drives Opportunities For Advanced Digital Gift Cards, Targeting Tech-Savvy Consumers With Personalized And Sophisticated Offerings.
4.5 Key Gifting Market Trends Shaping the Card Space in the Middle Eastern Market
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargainning Power of Buyers
4.6.3 Bargainning Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Latest Technological Innovations and Recent Trends in the Industry
4.8 Insights on Government Regulations in the Industry
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Food and Beverages
5.1.2 Personal Care (Apparel, Beauty Products, and Footwear)
5.1.3 Books and Media Products
5.1.4 Consumer Electronics
5.1.5 Restaurants and Bars
5.1.6 Other Product Types
5.2 By User Type
5.2.1 Individual
5.2.2 Corporate
5.3 By Distribution Channel
5.3.1 Online
5.3.2 Offline
5.4 By Country
5.4.1 United Arab Emirates
5.4.2 Saudi Arabia
5.4.3 Qatar
5.4.4 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Carrefour SA
6.2.2 T Choithram & Sons
6.2.3 Sharaf DG LLC
6.2.4 Damas International Ltd
6.2.5 Landmark Group
6.2.6 Spinneys
6.2.7 Emke Group
6.2.8 Inter Ikea Systems BV
6.2.9 Shufersal Ltd
6.2.10 Super-Pharm (Israel) Ltd*
- *List Not Exhaustive
7. DISCLAIMER AND ABOUT US
Middle East Gift Card And Incentive Card Industry Segmentation
The Middle Eastern gift card and incentive card market involves issuing and managing prepaid cards used for gifts or incentives. It includes physical and digital cards issued by retailers, banks, and specialized firms, catering to diverse consumer and corporate needs across the region.
The Middle Eastern gift card and incentive card market is segmented into product type, user type, distribution channel, and country. By product type, the market is segmented into food and beverages, personal care (including apparel, beauty products, and footwear), books and media products, consumer electronics, restaurants and bars, and other types. By user type, the market is segmented into individual and corporate. By distribution channel, the market is segmented into online and offline. By country, the market is segmented into the United Arab Emirates, Saudi Arabia, Qatar, and other countries. The report offers market size and forecasts in terms of value (USD) for all the above segments.
By Product Type | |
Food and Beverages | |
Personal Care (Apparel, Beauty Products, and Footwear) | |
Books and Media Products | |
Consumer Electronics | |
Restaurants and Bars | |
Other Product Types |
By User Type | |
Individual | |
Corporate |
By Distribution Channel | |
Online | |
Offline |
By Country | |
United Arab Emirates | |
Saudi Arabia | |
Qatar | |
Other Countries |
Middle East Gift Card And Incentive Card Market Research FAQs
How big is the Middle East Gift Card And Incentive Card Market?
The Middle East Gift Card And Incentive Card Market size is expected to reach USD 23.83 billion in 2025 and grow at a CAGR of 21.20% to reach USD 62.32 billion by 2030.
What is the current Middle East Gift Card And Incentive Card Market size?
In 2025, the Middle East Gift Card And Incentive Card Market size is expected to reach USD 23.83 billion.
Who are the key players in Middle East Gift Card And Incentive Card Market?
Carrefour SA, T Choithram & Sons, Sharaf DG LLC, Damas International Ltd and Landmark Group are the major companies operating in the Middle East Gift Card And Incentive Card Market.
What years does this Middle East Gift Card And Incentive Card Market cover, and what was the market size in 2024?
In 2024, the Middle East Gift Card And Incentive Card Market size was estimated at USD 18.78 billion. The report covers the Middle East Gift Card And Incentive Card Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Middle East Gift Card And Incentive Card Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Middle East Gift Card And Incentive Card Market Research
Mordor Intelligence provides a comprehensive analysis of the electronic gift card and stored value card landscape throughout the Middle East. Our expert research thoroughly examines various segments, including virtual gift card, digital gift card, and physical gift card markets. We also explore emerging trends in loyalty card and reward card programs. The report offers detailed insights into both retail gift card and corporate gift card sectors, with special attention to branded gift card offerings and merchant gift card solutions.
Stakeholders can access our downloadable report PDF, which delivers valuable insights into digital prepaid card adoption trends and promotional card strategies. The analysis covers store gift card market dynamics and highlights the growing importance of employee recognition card programs. Our research is particularly beneficial for businesses implementing prepaid gift card solutions and corporate incentive card programs. The report also examines the evolution of employee incentive card systems and prepaid incentive card strategies, providing actionable intelligence for companies looking to optimize their stored value card offerings in the Middle East market.