Saudi Arabia’s loyalty market to grow 15.4% to $842.5m in 2025

• Tiered loyalty structures and highly personalised rewards are gaining popularity, especially in retail.
• Next two to four years promise ongoing disruption, as brands double down on technology investment, data-driven marketing, and the expansion of digital loyalty ecosystems.
• The businesses best positioned for long-term success will be those that remain agile, prioritise customer-centricity, and continually adapt to both consumer and regulatory demands in Saudi Arabia’s fast-evolving loyalty economy.
• Looking forward, integration across sectors — retail, fintech, travel, and e-commerce — will deepen as coalition and cross-partner programs proliferate.
• Companies investing in AI-driven personalisation will stand out, as will those that adapt quickly to new regulatory standards around data privacy and transparency.

The loyalty market in Saudi Arabia is on an accelerated growth trajectory, poised to reach approximately $842.5 million in 2025—a 15.4 per cent annual increase.

Between 2020 and 2024, the sector grew at an impressive CAGR of 17.2 per cent, and further expansion is forecast as the market is projected to hit $1.37 billion by 2029, thanks to an expected CAGR of 13 per cent from 2025 to 2029, ResearchAndMarkets.com said in its report.

The rapid transformation is being driven by a potent mix of digital innovation, shifting consumer expectations, and government policy support—particularly initiatives aligned with Saudi Vision 2030.

The ecosystem is seeing a marked shift from traditional card-based programs to sophisticated digital loyalty platforms, which offer dynamic engagement via mobile apps, instant rewards, and seamless integration with e-commerce and fintech ecosystems.

Tiered loyalty structures and highly personalised rewards are gaining popularity, especially in retail, as brands seek to deepen engagement and incentivise repeat business. The integration of fintech has accelerated this evolution, providing frictionless rewards and innovative digital payment-linked solutions.

Delivering hyper-personalised offers

In this data-fueled landscape, brands are harnessing analytics and artificial intelligence to deliver hyper-personalised offers. Coalition programs, which unite partners from different industries, are also gaining traction—allowing consumers to earn and redeem benefits across a broader ecosystem.

Trending now are digital-first platforms: STC Pay, for example, has built loyalty capabilities directly into its digital wallet, while e-commerce players like Noon and Amazon Saudi Arabia entice shoppers with cashback and exclusive discounts.

The push towards digital loyalty is firmly supported by widespread smartphone adoption, a burgeoning digital payments ecosystem, and a tech-savvy young population that favours convenience and instant gratification over legacy paper or plastic schemes.

Vision 2030’s emphasis on digital transformation and cashless transactions further catalyses this momentum by creating an ideal environment for digital loyalty platforms to thrive.

Looking forward, integration across sectors — retail, fintech, travel, and e-commerce — will deepen as coalition and cross-partner programs proliferate.

Companies investing in AI-driven personalisation will stand out, as will those that adapt quickly to new regulatory standards around data privacy and transparency. Stricter oversight is likely, ensuring greater consumer protection but also raising the bar for operational compliance.

Prioritising customer-centricity

Saudi Arabia’s loyalty market landscape remains moderately fragmented, with established leaders such as STC Pay (telecom and payments), Saudia Airlines’ Alfursan (travel), and Jarir Bookstore (retail), alongside global brands like Amazon and Carrefour.

Meanwhile, fintech startups such as Hala and Geidea are shaking up the industry with agile, innovative approaches, particularly for the youth market.

Despite the fragmentation, consolidation is on the horizon. Larger players are expected to acquire or partner with smaller firms to expand their technological capabilities and broaden customer bases.

At the same time, niche verticals—from luxury retail to local services—continue to see new entrants and specialised offerings, ensuring a competitive, collaborative landscape.

The next two to four years promise ongoing disruption, as brands double down on technology investment, data-driven marketing, and the expansion of digital loyalty ecosystems.

The businesses best positioned for long-term success will be those that remain agile, prioritise customer-centricity, and continually adapt to both consumer and regulatory demands in Saudi Arabia’s fast-evolving loyalty economy.