Middle East Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics to 2029 with Market Share of 35 Retailers for Key Countries - ResearchAndMarkets.com

The "Middle East Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The gift card market in Middle East is expected to grow by 10.7% on annual basis to reach US$8.11 billion in 2025. The gift card market in the region experienced robust growth during 2020-2024, achieving a CAGR of 12.2%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 9.5% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 7.32 billion to approximately USD 11.68 billion.

The Middle East gift card market is experiencing robust growth, influenced by unique regional factors such as cultural gifting traditions, a burgeoning fintech landscape, and a youthful, tech-savvy population. Distinct from trends observed in Europe and Asia-Pacific, the Middle East market is characterized by a blend of traditional practices and rapid digital adoption.

This report provides a detailed data-centric analysis of the gift card sector in Middle East, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. With over 100+ KPIs at the regional and country level, this report provides a comprehensive understanding of gift card market dynamics.

It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

Key Insights

Cultural Significance of Gifting Driving Market Demand

• Traditional Gifting Practices: In Middle Eastern cultures, gifting is integral to social and religious occasions. Gift cards have become increasingly popular during festivals such as Eid al-Fitr and Ramadan, offering a modern twist to traditional gift-giving. This cultural emphasis on gifting significantly boosts the demand for physical and digital gift cards during these periods.
• Corporate Gifting Culture: Businesses in the region are adopting gift cards for employee recognition and client appreciation, aligning with the cultural importance of gifting. This practice enhances business relationships and employee satisfaction, expanding the market.

Fintech Innovations and Digital Payment Adoption

• Rise of Digital Wallets: The Middle East is witnessing a surge in digital wallet usage, with platforms like STC Pay and PayBy gaining popularity. Integrating gift cards into these wallets offers consumers seamless purchasing and redemption experiences, driving the shift from physical to digital gift cards.
• Fintech-Driven Market Expansion: The region's fintech sector is rapidly evolving, with startups introducing innovative gift card solutions. Collaborations between fintech companies and retailers are enhancing the accessibility and appeal of gift cards, particularly among younger consumers who prefer digital transactions.

Youthful Demographics and E-Commerce Growth

• Young, Tech-Savvy Population: With a median age of approximately 33, the Middle East boasts a youthful demographic that is quick to adopt new technologies. This tech-savvy population is driving the demand for digital gift cards, especially those for online shopping and gaming.
• E-Commerce Expansion: The growth of e-commerce platforms in the region has created new avenues for gift card usage. Retailers offer digital gift cards that can be redeemed online, catering to consumers' increasing preference for online shopping.

Competitive Landscape of the Middle East Gift Card Market

• The Middle East gift card market is characterized by a mix of global players, regional retailers, and fintech innovators. Cultural nuances, technological advancements, and strategic partnerships shape the competitive dynamics.

Market Trends and Key Players

• Retailer-Branded Gift Cards: Major retail chains such as Carrefour and Landmark Group offer branded gift cards, capitalizing on their extensive customer base and brand loyalty. These cards are available in physical and digital formats, catering to diverse consumer preferences.
• Fintech Collaborations: Companies like YouGotaGift are partnering with various retailers to provide a centralized platform for digital gift cards, enhancing consumer convenience and expanding market reach.
• Customized Corporate Solutions: Providers are developing tailored gift card programs for corporate clients, offering customizable options that align with company branding and objectives. This focus on B2B solutions is strengthening the role of gift cards in employee incentives and customer loyalty programs.

Recent Developments and Partnerships

• Integration with Digital Wallets: Gift card providers collaborate with digital wallet platforms to enable storage and redemption of gift cards via mobile devices, reflecting the region's mobile-first consumer behavior.
• Cross-Border Usability: Some companies are introducing gift cards that can be used across multiple countries in the Middle East, appealing to a geographically diverse customer base and facilitating cross-border gifting.
• Enhanced Security Features: To build consumer trust, providers are implementing advanced security measures, such as two-factor authentication and real-time tracking, to protect against fraud and misuse.

Outlook for the Next 2-4 Years

• Digital Gift Cards to Surpass Physical Cards: As digital payment infrastructure continues to improve and consumer preferences shift, digital gift cards are expected to dominate the market, offering convenience and instant delivery.
• Expansion of E-Gifting During Festivals: The cultural importance of gifting during religious and social occasions will continue to drive the popularity of e-gift cards, with retailers offering special promotions and themed cards to attract consumers.
• Growth in Corporate Incentive Programs: Businesses are projected to increasingly adopt gift cards as part of their incentive and loyalty programs, recognizing their versatility and appeal to a diverse workforce.
• Technological Advancements Enhancing User Experience: Integrating technologies such as blockchain for security and artificial intelligence for personalized recommendations will enhance the functionality and attractiveness of gift cards.
• Regulatory Developments to Shape Market Dynamics: As governments in the region continue to promote cashless economies, supportive regulations are likely to emerge, facilitating the growth of the digital gift card market.

Scope

This report provides in-depth, data-centric analysis of gift card industry in the Middle East through 400+ tables and 1120+ charts, across 4 countries and overall region. Below is a summary of key market segments at regional and country level.

Regional Report - Middle East Gift Card and Incentive Card Market Intelligence (Databook)

Country Report 1 - Israel Gift Card and Incentive Card Market Intelligence (Databook)

Country Report 2 - Saudi Arabia Gift Card and Incentive Card Market Intelligence (Databook)

Country Report 3 - Turkey Gift Card and Incentive Card Market Intelligence (Databook)

Country Report 4 - United Arab Emirates Gift Card and Incentive Card Market Intelligence (Databook)

Total Spend on Gifts

• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Gift Card Market Size by KPIs across Consumer Segments

• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Gift Card Market Size by Consumer Segment

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer

• By Functional Attribute
• By Occasion
• Festivals & Special Celebration Days
• Milestone Celebration
• Self-Use
• Other
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics

• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Gift Card Market Size by Corporate Consumer

• By Functional Attribute
• By Occasion
• Employee Incentive
• Sales Incentive
• Consumer Incentive
• By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers)

• 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

Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)

• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Gift Card Purchase by Payment Method

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• BNPL & Other Digital Payment
• Cash

Market share by retailers for key countries (35 retailers)

• Abdullah AlOthaim Supermarket
• Al Nahdi
• Al-Dawaa pharmacies
• Amazon
• Amazon Turkey
• Amazon.ae
• Be (Shufersal's Drugstore Chain)
• BIM
• Carrefour
• CarrefourSA
• Choithrams
• Cohen Sales Warehouses Ltd
• Danube
• Dubai Duty Free
• HyperPanda
• IKEA
• Jarir
• LC Waikiki
• LuLu Hypermarket
• Mall Gift Cards
• MediaMarkt
• Merav - Mazon Kol
• Migros
• Panda
• Rami Levy
• Sharaf DG
• Shufersal Deal
• Sok Marketler
• Spinneys
• Super-Pharm
• Tamimi Markets
• Teknosa
• Tiv Taam
• Victory
• Virgin Megastore
• Yesh
• Yeynot Bitan

Key Attributes:

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