UAE Gift Card Market

UAE Gift Card Market Overview:

The UAE gift card market is projected to exhibit a growth rate (CAGR) of 15.30% during ​2024-2032​. The market is thriving, driven by digital transformation, increasing corporate adoption, and consumer preference for convenience and personalization. Growth in e-commerce, mobile payment integration, and innovative retail partnerships further propel the market, making gift cards a popular choice for both personal and corporate gifting.

UAE Gift Card Market Trends:

Rising Emphasis on Digitalization

The gift card industry in UAE is rapidly embracing digitalization, mirroring global trends. E-gift cards are getting substantial traction due to their unparalleled convenience and seamless integration with online shopping platforms. As consumers nowadays are increasingly turning to e-commerce for their shopping needs, the appeal of digital gift cards grows exponentially. These digital alternatives offer instant delivery, allowing both givers and receivers to bypass traditional physical constraints and time delays associated with traditional gift cards. For instance, Mint Middle East LLC has introduced a UnionPay International branded gift card program in the UAE, with plans to launch a MasterCard branded gift card in the near future. The company aims to target corporate clients and exchange houses initially, with future plans to expand to retail and online channels. This initiative is expected to tap into the rapidly growing global gift card market and is part of Mint's strategy to diversify its revenue streams and strengthen its relationships with partners in the UAE. Furthermore, digital gift cards provide recipients with flexibility to redeem them across various online platforms, enhancing their utility and appeal. The convenience of digital gift cards also extends to their management as recipients can easily store and access them on their smartphones or digital wallets, eliminating the risk or loss or misplacement.

Retail Partnerships

Retail partnerships in the UAE gift card market are increasingly focusing on the development of multi-brand gift cards. These cards allow consumers to use a single gift card across a variety of participating retailers, significantly enhancing their appeal. Multi-brand gift cards offer greater flexibility and choice, making them more attractive to recipients who can redeem them at their preferred stores, whether for fashion, dining, entertainment, or other services. For retailers, these partnerships expand their customer base and drive foot traffic, as consumers holding multi-brand gift cards are more likely to visit participating stores. This collaborative approach also strengthens brand relationships and fosters loyalty among consumers. FNP.ae has partnered with Merit Incentives to introduce gift cards in the UAE, Qatar, and the Kingdom of Saudi Arabia. The FNP gift cards are now available through the Merit Incentives gift cards platform, GiftiGlobal, and can be purchased in various denominations. This partnership aims to provide a user-friendly gift card service to a wider range of customers across the GCC, enhancing the overall gifting experience.  Additionally, multi-brand gift cards simplify the gifting process, providing a versatile option that caters to diverse tastes and preferences. By leveraging these partnerships, retailers can capitalize on the growing demand for convenient and flexible gifting solutions, ultimately driving sales and enhancing customer satisfaction.

UAE Gift Card Market News:

• In 2024, YOUGotaGift has partnered with Carrefour in the UAE to offer its 'phygital' HappyYOU multi-brand gift cards at all Carrefour stores. The eco-friendly HappyYOU card can be purchased at Carrefour cash counters, and the credit can be redeemed across various retailers. This partnership aims to expand the availability of unique gift cards and enhance the shopping experience for customers. The global gift card market is experiencing substantial growth, with the Middle East expected to reach $6 billion by 2026.
• In 2023, Géant launched digital and physical gift cards, available for use and reloaded at all 18 supermarkets and hypermarkets across the UAE. Customers can purchase and activate cards in-store, with the digital version accessible through a dedicated portal. The cards, starting at AED 50, remain valid for 12 months and offer customizable options. Marc Laurent, President of Retail - Everyday Goods at GMG, emphasizes the omnichannel functionality and the commitment to customer convenience and value.

UAE Gift Card Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2024-2032​. Our report has categorized the market based on type, card type, application, and end user.

Type Insights:

• E-Gift Cards
• Physical Gift Cards
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes e-gift cards and physical gift cards.

Card Type Insights:

• Closed-loop Card
• Open-loop Card
   

A detailed breakup and analysis of the market based on the card type have also been provided in the report. This includes closed-loop card and open-loop card.

Application Insights:

• Food and Beverage
• Health, Wellness and Beauty
• Apparel, Footwear and Accessories
• Books and Media Products
• Consumer Electronics
• Restaurants and Bars
• Kids Products
• Others
   

The report has provided a detailed breakup and analysis of the market based on the application. This includes food and beverage, health, wellness and beauty, apparel, footwear and accessories, books and media products, consumer electronics, restaurants and bars, kids products, and others.

End User Insights:

• Retail
• Corporate
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes retail and corporate.

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Dubai, Abu Dhabi, Sharjah, Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UAE Gift Card Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE gift card market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UAE gift card market?
• What is the breakup of the UAE gift card market on the basis of type?
• What is the breakup of the UAE gift card market on the basis of card type?
• What is the breakup of the UAE gift card market on the basis of application?
• What is the breakup of the UAE gift card market on the basis of end user?
• What are the various stages in the value chain of the UAE gift card market? 
• What are the key driving factors and challenges in the UAE gift card?
• What is the structure of the UAE gift card market and who are the key players?
• What is the degree of competition in the UAE gift card market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE gift card market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE gift card market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE gift card industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.