Ramadan Spurs Surge in Loyalty Program Adoption and Consumer Engagement Across the GCC

Technology

Ramadan Spurs Surge in Loyalty Program Adoption and Consumer Engagement Across the GCC

Ramadan, the holiest month in the Islamic calendar, continues to reshape consumer behavior across the GCC—driving generosity, reflection, and community engagement—while simultaneously fueling record growth in loyalty participation, digital rewards adoption, and incentive-led spending across retail, travel, and financial sectors.

As the season of giving unfolds, loyalty programs throughout the Middle East are capitalizing on heightened spending patterns. Building on 2025–2026 market trends, experts forecast that loyalty schemes leveraging personalization, digital transformation, and coalition-based partnerships will deliver stronger customer retention and higher transaction volumes this Ramadan.

Ramadan’s Role in Redefining Loyalty

Ramadan is not merely a sales period—it is a cultural and emotional moment that drives intentional purchasing and generosity. Across the UAE and Saudi Arabia, mobile shopping surges during Ramadan nights as families prepare for iftar and suhoor, with search interest in “offers” and “discounts” peaking toward the month’s end.

During this time, loyalty initiatives—from tiered rewards and gift cards to exclusive offers and experience-based incentives—serve as key tools for brands to deepen emotional connections with their most engaged customers.

“Ramadan isn’t a one-month campaign; it’s a strategic moment to reaffirm value with your most engaged customers,” said Gaby Kool. “Loyalty performs best when it’s part of a holistic incentive strategy that respects cultural sentiment and rewards commitment with relevance and respect.”

GCC Loyalty Market Growth

The Middle East’s loyalty market is expanding at an unprecedented pace. According to 2025 projections, it is expected to grow 16.3%, reaching US$3.27 billion, up from US$2.81 billion in 2024. In the UAE, loyalty programs alone are forecast to increase 16.1% to approximately US$490.8 million in 2025, with steady gains anticipated through 2028.

The regional loyalty ecosystem is projected to maintain double-digit growth (~13.8% CAGR) through 2029 as digital and coalition-based models reshape customer engagement. Younger demographics, particularly Gen Z, are leading this evolution—favoring experiences and purpose-driven incentives over traditional point accumulation.

Integrating Loyalty into a Broader Incentive Strategy

Experts emphasize that Ramadan loyalty initiatives must align with a broader, culturally attuned incentive strategy. The most successful programs combine experiential relevance with data-driven personalization and seamless digital integration. Key components include:

Experiences and cultural relevance: Exclusive iftar events, community experiences, and charity-aligned campaigns.
Data-driven personalization: Real-time offers based on consumer behavior and preferences.
Tiered point systems and custom perks: Enhancing engagement at every stage of the customer journey.
Digital ecosystems: Curated, high-impact experiences that integrate travel, premium merchandise, and purpose-driven opportunities with digital gift cards.

“Today’s most effective loyalty strategies are built around meaningful engagement, not single reward categories,” added Gaby Kool. “When brands design ecosystems that blend experiential value, aspirational rewards, and seamless digital delivery, they drive emotional connection and long-term loyalty.”

Sector Highlights During Ramadan

Retail: Personalized Rewards Fuel Spending
Retail loyalty programs—historically the largest contributor to regional activity—see heightened engagement as consumers shop for groceries, gifts, and fashion. App-based platforms and mobile wallet integrations enable real-time rewards redemption, while multi-brand coalition programs enhance customer convenience across both in-store and online channels.

Travel & Hospitality: Experiential Loyalty Peaks
Domestic and regional travel during Ramadan continues to drive loyalty engagement for airlines and hotels. The Middle East travel loyalty market, valued at approximately US$1.14 billion in 2025, is led by the UAE and Saudi Arabia, with cross-industry perks—such as iftar packages and tiered rewards—achieving the highest redemption rates.

Banking & Financial Services: Everyday Rewards Rise
Banks and fintech platforms are embedding loyalty into daily transactions. Credit card rewards, BNPL programs, and partner offers allow consumers to earn points on essential and festive purchases, boosting engagement and transaction frequency throughout Ramadan.