Dublin, March 21, 2024 (GLOBE NEWSWIRE) -- The "United Arab Emirates Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
UAE's gift card industry is expected to grow by 10.8% on annual basis to reach US$2.0 billion in 2024. The gift card industry in United Arab Emirates will continue to grow over the forecast period and is expected to record a CAGR of 9.3% during 2024-2028. Gift card market in the country will increase from US$1.8 billion in 2023 to reach US$2.8 billion by 2028.
The demand for gift cards has been growing at a consistent rate in the United Arab Emirates over the last few years and the trend is projected to continue further over the medium term. Improved digital payment infrastructure and a tech-savvy population are among the factors aiding digital gift card sector growth in the Emirates. To tap into the rising demand, gifting platforms are also entering the gift card market.
Gift card marketplaces, on the other hand, are seeking to widen their distribution network in the Emirati nation. As a result, the trend of strategic collaboration is set to gain further momentum in 2024. This will aid the competitive landscape in the Emirati gift card market over the medium term. Overall, the publisher maintains a positive growth outlook for the Emirati gift card market over the next three to four years.
Online gifting platforms are foraying into the gift card sector to diversify revenue growth in 2024
The demand for gift cards, especially digital ones, is set to rise significantly over the medium term in the Emirates. Consequently, online gifting platforms are entering the gift card market to diversify their revenue stream.
FNP.ae, one of the leading online gifting solutions providers, entered into a strategic partnership with Merit Incentives, a worldwide company specializing in engagement technology and solutions. This partnership, announced in October 2023, is a big step for FNP as it diversifies its product offerings, bringing FNP gift cards to the United Arab Emirates. Alongside the Emirati nation, FNP also launched the gift card service in Qatar and the Kingdom of Saudi Arabia. The FNP gift cards are made available in various denominations through the Merit Incentives gift card platform.
Going forward, the publisher expects more gifting platforms to foray into the gift card category. Share the Love, another gifting platform in the UAE, raised its seed funding round in October 2023. The firm is planning to use the capital for product development and accelerate expansion.
Gift card marketplaces are seeking to widen the distribution of their products through retail channels
Although digital gift cards are becoming increasingly popular compared to physical ones, marketplaces are widening the distribution of their products through retail partnerships amid a growing competitive landscape in the Emirates.
YouGotaGift, one of the leading digital gift card marketplaces, announced a strategic collaboration with Carrefour in January 2024. The multi-brand gift card has been made available at all Carrefour outlets in the Emirates. The partnership widens the distribution network for YouGotaGift, which is facing growing competition from new entrants in the market.
Carrefour has become the first retail partner to distribute YOUGotaGift cards. This partnership means that Carrefour will not only sell these gift cards to customers but also incorporate them into various programs for staff performance, customer marketing, gifting, payouts, and rewards.
Gift card giveaway campaigns to provide growth support to the market in the United Arab Emirates
The Galleria Al Maryah Island in Abu Dhabi, known for its upscale shopping and lifestyle offerings, marked its 10th anniversary with a gift card giveaway campaign. The Dh1 million worth of gift cards campaign is part of its strategy to drive more footfall at the mall. Under the campaign, until October 31, shoppers were allowed to enter the prize draw by spending Dh500 or more.
The mall offered Dh10,000 worth of gift cards to a total of 100 winners. In addition to the giveaway, The Galleria also celebrated its 10-year milestone by releasing a special unisex fragrance. Visitors who purchased a gift card worth Dh250 or more before October 31 were entitled to receive the limited-edition fragrance as a gift. These innovative gift card programs are supporting the growth of the gift card industry in the United Arab Emirates. The publisher expects more such campaign launches in the Emirates in 2024.
Reasons to buy
- In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2019-2028) for gift cards and incentive cards in the United Arab Emirates.
- Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
- Get insights into consumer attitude and behaviour in the United Arab Emirates: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
- Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Distribution channel insights: Understand gift cards sales dynamics by channels - online vs offline and by 1st party vs 3rd party sales.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 268 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $2 Billion |
| Forecasted Market Value (USD) by 2028 | $2.8 Billion |
| Compound Annual Growth Rate | 9.3% |
| Regions Covered | United Arab Emirates |
Scope
Gift Card Sales Estimates by Key Retailers
- Carrefour
- Lulu
- Jumbo
- Souq
- Spinneys
- Dubai Duty Free
- Life
- Sharaf DG
- Ikea
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
- 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
- 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/vh8u7c
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