Dublin, March 24, 2023 (GLOBE NEWSWIRE) -- The "United Arab Emirates Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.
UAE's gift card industry is expected to grow by 11.5% on annual basis to reach US$ 1,793.3 million in 2023. In value terms, the gift card market in United Arab Emirates has recorded a CAGR of 10.4% during 2018-2022.
The gift card industry in United Arab Emirates will continue to grow over the forecast period and is expected to record a CAGR of 9.8% during 2023-2027. Gift card market in the country will increase from US$ 1,608.9 million in 2022 to reach US$ 2,609.5 million by 2027.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
The innovative and growing fintech market in the United Arab Emirates (UAE) is driving the growth of the gift card industry as well as the popularity of the payment method among consumers in the region. The trend is projected to further accelerate from the short to medium-term perspective, as both domestic and global players continue to invest in the space, driving the competitive landscape in the UAE gift card industry.
Amid the surging online shopping trends in the country, retailers are also leveraging gift cards to drive in-store shopping. Furthermore, to make their gift card purchases more affordable, providers are forging strategic alliances with buy now pay later providers in the Emirati nation. Overall, the publisher maintains a robust growth outlook for the UAE gift card industry over the next three to four years.
Digital gift card providers are forging strategic alliances with buy now pay later providers in the UAE
The popularity of buy now pay later (BNPL) schemes has surged among consumers in the UAE. Shoppers are using the payment method for all of their purchases across different categories. Amid the growing popularity, providers are partnering with BNPL players to further accelerate their growth.
In October 2022, YOUGotaGift, one of the leading digital gift card marketplaces, announced that the firm had entered into a strategic collaboration with Tabby, the leading BNPL firm in the region. The partnership allows shoppers in the Emirates to buy a gift card from the digital gift card marketplace using the BNPL payment method, thereby spreading the cost of their purchases over several months.
Such strategic collaborations will make gift cards more popular among shoppers in the UAE, who are also struggling with the rising cost of living and inflationary pressure. This will keep driving the growth of the industry from the short to medium-term perspective in the region.
Domestic fintech firms are planning to expand their presence in the Indian market with the launch of gift card services
Fintech firms operating in India have recorded strong growth over the last three to four years, due to the growing digitalization in the country. Looking to leverage the Indian growth story, UAE-based fintech firms are planning to build their presence in India with the launch of gift card services.
In September 2022, ICC Fintech, the UAE-based firm, announced that the firm is starting operations in India with an initial investment of US$30 million. As part of its presence in the country, the firm is also launching a gift card service. However, unlike other fintech firms, ICC Fintech is targeting NRIs only. Over the next three years, the firm plans to target 18 million consumers with its gift card service. Apart from gift cards, the firm is also planning to offer services in the healthcare and property management areas.
As the preference for gift cards continues to grow among consumers globally, the publisher expects more domestic firms to expand their operations and build their presence in the global market over the next three to four years.
Firms are launching gift card promotional events to drive in-store transactions in the Emirates
During the pandemic outbreak, online shopping gained widespread momentum becoming a mainstream shopping channel in the region. Consequently, to drive shoppers back to in-store shopping, firms are leveraging gift card capabilities in the UAE. For instance,
In November 2022, Dubai Festival City Mall, part of Al-Futtaim Malls, announced a gift card promotional event to drive in-store transactions in the country. Under the program, the firm announced a gift card worth AED 30000, to be given to shoppers who spend at least AED 300 at the mall during the three-day super sale event held from November 25th to 27th.
The publisher expects more firms, including supermarkets and malls, to launch such gift card promotional events in the Emirates over the next three to four years. This will keep supporting the industry growth from the short to medium-term perspective.
Companies Mentioned
- Carrefour SA
- Consumer Co-operative Union (CCU)
- Landmark Group
- Emke Group
- Damas International Ltd
- T Choithram & Sons
- Sharaf DG LLC
- Inter Ikea Systems BV
Scope
Total Spend on Gifts in United Arab Emirates
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in United Arab Emirates
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in United Arab Emirates
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United Arab Emirates
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in United Arab Emirates
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United Arab Emirates
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United Arab Emirates
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United Arab Emirates
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United Arab Emirates
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United Arab Emirates
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/s19dpl
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