In value terms, the loyalty market in United Arab Emirates has recorded a CAGR of 12.6% during 2018-2022.The loyalty market in United Arab Emirates will continue to grow over the forecast period and is expected to record a CAGR of 11.7% during 2023-2027. Loyalty market in the country will increase from US$1,269.7 million in 2022 to reach US$2,214.5 million by 2027.
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According to the publisher, loyalty market in United Arab Emirates is expected to grow by 12.1% on annual basis to reach US$1,423.7 million in 2023.
In value terms, the loyalty market in United Arab Emirates has recorded a CAGR of 12.6% during 2018-2022.The loyalty market in United Arab Emirates will continue to grow over the forecast period and is expected to record a CAGR of 11.7% during 2023-2027. Loyalty market in the country will increase from US$1,269.7 million in 2022 to reach US$2,214.5 million by 2027.
In recent years, the UAE has seen a growing adoption of loyalty programs by businesses of all sizes. From e-commerce platforms to retailers, more and more brands are launching loyalty programs to boost repeat purchases and drive revenue growth. This trend can be attributed to several factors, including increasing competition, changing consumer behaviour, and advancements in technology.
In 2023, the growing inflation is projected to drive the adoption of loyalty programs among consumers in the Emirati nation. Consumers are seeking more value on their everyday spending amid the current macroeconomic environment. Consequently, the publisher expects a significant uptake in loyalty programs that offer personalized rewards to their members in the UAE.
Millions of Emiratis are enrolled in different loyalty programs offered by brands and businesses
Loyalty and reward programs are significantly popular among Emiratis. This is evident from millions of members that are registered with different brands and businesses in the Middle East nation.
- In January 2023, Emirates, one of the leading global airline carriers, announced that is Skywards loyalty program had signed up 30 million members. The program has partnered with 150 brands, including 16 airlines and over 100 hotel partners, allowing members to earn and redeem miles.
- Al Ansari Exchange, an online money transfer service in the UAE, also announced that it had enrolled two million members in its PLUS rewards loyalty program in January 2023. Through the Al Ansari Exchange app and digital channels, as well as any of their branches in the UAE, customers can earn points on their qualifying transactions. These points can then be used to access appealing discounts and offers on a range of popular brands in areas such as dining, entertainment, shopping, and more.
In 2023, the publisher expects these loyalty programs to record further uptake in their loyalty program members, thereby aiding the growth of the industry from the short to medium-term perspective.
E-commerce focused businesses are launching loyalty programs to drive growth in the UAE
Amid the growing competition in the e-commerce space, firms are seeking to leverage loyalty programs to drive repeat purchases and accelerate their revenue growth over the next three to four years.
- In April 2023, noon.com, one of the leading online marketplaces in the UAE, announced the launch of its loyalty program, noon One. The program seeks to drive repeat purchases from consumers with a reward system of unlimited free deliveries across its offerings. The new and improved loyalty program also enables consumers to save more on their purchases. To attract members, the firm is offering a two-week free access to loyalty program, along with a reduced membership fee per month until August 2023.
- In February 2023, Yango, the ride-hailing service in the UAE, also announced the launch of its loyalty program in the UAE. The loyalty program, Yango Plus, allows users to receive 10% from a ride as cashback points. Users can redeem the points in its entirety on the next ride. According to the firm, one loyalty program point is equivalent to 1 AED. The international ride-hailing service, which launched in the UAE in September 2022, has operations in more than 20 countries across the Middle East, Africa, Central Asia, and Europe.
From the short to medium-term perspective, the publisher expects more such e-commerce focused businesses to turn to loyalty programs to drive customer stickiness and boost their sales in the UAE. This will also accelerate the competitive landscape and innovation in the UAE loyalty programs industry in 2023.
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