During Ramadan, loyalty programs across the Middle East capitalize on seasonal spending, with retail, travel, and banking poised for record engagement.
Loylogic26 Febraury 2026. Press release.
UAE: 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 capitalize on seasonal spending, with retail, travel, and banking poised for record engagement. Building on 2025–2026 market trends, programs that leverage digital adoption, personalized rewards, and coalition partnerships are expected to drive stronger customer retention and higher transaction volumes during the holy month.
Why Ramadan Matters for Loyalty and Incentives
Ramadan is more than a seasonal sales period; it is a cultural moment that drives intentional spending and generosity. 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,” says Gabi Kool, CEO of Loylogic. “Loyalty performs best when integrated into a holistic incentive approach that respects cultural sentiment and rewards customer commitment with relevance and respect.”
The Evolving Loyalty Landscape in the UAE & GCC
The loyalty market across the Middle East continues to expand rapidly. It is projected to grow 16.3% in 2025, reaching approximately US $3.27 billion, up from US $2.81 billion in 2024. In the UAE alone, loyalty programmes are expected to grow 16.1% to about US $490.8 million in 2025 with strong gains expected through 2028.
The regional loyalty market is forecast to maintain double-digit growth, of ~13.8% CACR through during 2029 as digital, coalition, and personalized 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, personalized 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 personalization: Real-time, adaptive offers reflecting individual behavior, preferences, and purchase history.
- Tiered point systems and personalized perks: Delivering relevance throughout the customer journey.
- Digital and high-value reward ecosystems: Leading programs 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.
“Today’s most effective loyalty strategies are built around meaningful engagement, not single reward categories,” continues Gabi Kool. “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.”
Sector Highlights During Ramadan
Retail: Personalized Rewards Drive Ramadan Spending
Retail loyalty programs, 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 & Hospitality: Experiential Loyalty Peaks
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 ~US$1.14B in 2025, led by the UAE and Saudi Arabia. Programs offering cross-industry perks are expected to achieve the highest redemption rates.
Banking & Financial Services: Rewards Embedded in Everyday Spending
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.
Key Driving Factors
- Coalition loyalty across multi-brand ecosystems
- AI-driven personalization and real-time rewards
- Integration with mobile wallets, fintech, and partner ecosystems
- Experiential rewards in travel and hospitality
About Loylogic
Loylogic is a leader in global rewards marketplaces for loyalty and incentives management, enabling brands to deliver scalable, flexible engagement experiences through a modern commerce platform. Its global catalog and redemption marketplace support meaningful engagement across B2C, B2E, and B2B programs worldwide. With deep expertise in sourcing, fulfilment, and patented points-plus-cash innovation, Loylogic has enabled over 200 billion points and miles transactions, delivered more than $1 billion in commerce, and shipped experiences spanning 100+ categories across 190 countries to more than 10 million loyalty members worldwide. Learn more at https://www.loylogic.com
Source: Loylogic
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