Image generated by AI for illustrative purposes. Every year, Ramadan reshapes consumer behavior across the GCC, inspiring generosity, reflection, and deeper community engagement, while also accelerating spending, loyalty participation and the adoption of innovative incentive strategies,
During Ramadan, loyalty programs across the Middle East capitalise on seasonal spending, with retail, travel, and banking poised for record engagement. Building on 2025–2026 market trends, programs that leverage digital adoption, personalised rewards, and coalition partnerships are expected to drive stronger customer retention and higher transaction volumes during the Holy Month.
Across the UAE and Saudi Arabia, mobile shopping peaks during Ramadan nights as families prepare for Iftar and Suhoor, while search interest for ‘offers’ and ‘discounts’ rises sharply in the final days of the month.
Loyalty initiatives, whether through gift cards, tiered rewards, points programs, experiences, or exclusive offers, become powerful tools to connect with consumers during this period.
Ramadan isn’t a one-month campaign; it’s a strategic moment to reaffirm value with your most engaged customers. Loyalty performs best when integrated into a holistic incentive approach that respects cultural sentiment and rewards customer commitment with relevance and respect.”
The loyalty landscape in the UAE and GCC
The loyalty market across the Middle East continues to expand rapidly. It is projected to grow 16.3 per cent in 2025, reaching approximately US $3.27bn, up from US $2.81bn in 2024. In the UAE alone, loyalty programmes are expected to grow 16.1 per cent to about US $490.8m in 2025 with strong gains expected through 2028.
The regional loyalty market is forecast to maintain double-digit growth, of approximately 13.8 per cent CACR through during 2029 as digital, coalition, and personalised models broaden customer engagement opportunities. Consumers increasingly seek experiences over transactional perks, particularly among younger segments such as Gen Z, with modern loyalty strategies blending points, exclusive experiences, cultural events, personalised offers, and meaningful partnerships.
Integrating loyalty into a broader incentive strategy
To resonate during Ramadan, loyalty initiatives must form part of a broader incentive narrative:
- Experiences and cultural relevance: Exclusive Iftar events, community experiences, and partnerships aligned with Ramadan’s spirit.
- Data-driven personalisation: Real-time, adaptive offers reflecting individual behavior, preferences, and purchase history.
- Tiered point systems and personalised perks: Delivering relevance throughout the customer journey.
- Digital and high-value reward ecosystems: Leading programmes are moving beyond transactional incentives toward curated, high-impact experiences. The most successful ecosystems blend travel, exclusive access, premium merchandise, and purpose-driven opportunities with digital gift cards seamlessly woven into a broader, value-driven proposition.
A sector breakdown of loyalty programmes during Ramadan
From personalised rewards that drive Ramadan spending to experiential loyalty and embedding rewards in everyday spending. Here’s a look at how loyalty strategy can be optimised across various industry sectors.
Retail: Retail loyalty programmes, the largest contributor to regional activity, sees heightened engagement as consumers shop for groceries, gifts, and fashion. App-based and mobile wallet integrations enable real-time rewards, while multi-brand coalition programs allow customers to redeem points seamlessly across stores and e-commerce platforms.
Travel and hospitality: Domestic and regional travel during Ramadan fuels airline and hotel loyalty programs, with tiered rewards, exclusive Iftar experiences, and partner promotions gaining traction. The Middle East travel loyalty market is estimated at approximately US$1.14bn in 2025, led by the UAE and Saudi Arabia. Programs offering cross-industry perks are expected to achieve the highest redemption rates.
Banking and financial services: Banks and fintech platforms encourage card and digital wallet usage during Ramadan. Credit card rewards, BNPL programs, and partner offers enable consumers to earn points on essential and seasonal purchases, boosting engagement and transaction frequency.
Today’s most effective loyalty strategies are built around meaningful engagement, not single reward categories. When brands design incentive ecosystems that combine experiential value, aspirational rewards, and seamless digital delivery, they create emotional connection driving both immediate engagement and sustained lifetime loyalty.
By Gabi Kool, CEO of Loylogic.
