Ramadan continues to reshape consumer behaviour across the GCC, combining cultural generosity with heightened spending, loyalty participation and digital engagement. For brands, the holy month has evolved beyond a seasonal sales spike into a strategic window to deepen customer relationships and drive measurable performance across retail, travel and financial services.
Across the UAE and Saudi Arabia, mobile commerce typically peaks during Ramadan evenings, particularly as families prepare for iftar and suhoor. Search interest for “offers” and “discounts” also rises sharply toward the end of the month. In response, loyalty programmes are intensifying their focus on personalised rewards, digital incentives and coalition partnerships to capture demand and strengthen retention.
“Ramadan isn’t a one-month campaign; it’s a strategic moment to reaffirm value with your most engaged customers,” says Gaby 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.”
A fast-growing loyalty market The regional loyalty market is expanding rapidly
It is projected to grow 16.3 per cent in 2025, reaching approximately $3.27bn, up from $2.81bn in 2024. In the UAE alone, loyalty programmes are expected to rise 16.1 per cent to around $490.8m in 2025, with continued double-digit growth forecast through 2028.
Across the GCC, the market is expected to sustain a compound annual growth rate of roughly 13.8 per cent through 2029, driven by digital adoption, coalition ecosystems and increasingly personalised engagement models. Younger consumers, particularly Gen Z, are showing stronger preference for experiential rewards over purely transactional perks, prompting brands to rethink traditional points-based strategies.
To resonate during Ramadan, brands are increasingly embedding loyalty within a wider incentive strategy. This includes:
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Experience-led engagement, such as exclusive iftar events and culturally aligned partnerships
Data-driven personalisation using real-time behavioural insights
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Tiered rewards and tailored perks across the customer journey
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Digitally integrated reward ecosystems combining travel, premium merchandise and digital gift cards
“Today’s most effective loyalty strategies are built around meaningful engagement, not single reward categories,” continues 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 dynamics during Ramadan
Retail remains the largest contributor to loyalty activity during Ramadan, with heightened engagement across groceries, gifting and fashion. App-based programmes and mobile wallet integrations enable real-time rewards, while multi-brand coalitions allow seamless redemption across online and offline channels.
In travel and hospitality, domestic and regional movement supports increased activity across airline and hotel loyalty schemes. Tiered rewards, exclusive iftar experiences and cross-industry partnerships are driving redemption. The Middle East travel loyalty segment alone is estimated at approximately $1.14bn in 2025, led by the UAE and Saudi Arabia.
Meanwhile, banks and fintech platforms are embedding rewards directly into everyday spending. Credit card incentives, buy-now-pay-later programmes and digital wallet integrations are encouraging higher transaction frequency during the month.
Industry analysts note that coalition loyalty models, AI-driven personalisation, fintech integration and experience-led rewards are becoming structural features of the regional market rather than temporary campaign tactics.