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

TCN Bureau

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August 21, 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.

Cybersecurity training against phishing is a “waste of time”

Ana Mary Joseph

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August 21, 2025

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Cybersecurity training against phishing is a “waste of time”

Statistical comparisons reveal no significant improvement among employees who had completed recent training as compared to those without such experience.
Organisations need to recalibrate their expectations regarding the impact of both annual security awareness training and standard embedded phishing interventions as they are typically implemented today.

A significant new study has cast serious doubt on the practical effectiveness of standard cybersecurity training programs in reducing organisational vulnerability to phishing attacks.

Despite extensive awareness efforts, recent research indicates that such initiatives may offer negligible protection against real-world social engineering threats.

Over an eight-month period, researchers from UC San Diego, University of Chicago, and UC San Diego Health conducted a rigorous experiment within a major US healthcare organisation.

The study involved ten rounds of simulated phishing campaigns delivered to more than 19,500 employees, aiming to objectively assess the efficacy of various cybersecurity training modalities.

Key findings

The principal finding of this analysis is that recent participation in cybersecurity awareness training activities did not lead to a measurable reduction in the likelihood of falling victim to simulated phishing.

Statistical comparisons revealed no significant improvement among employees who had completed recent training as compared to those without such experience.

Alarmingly, the data further demonstrated that personnel who had undergone several static cybersecurity courses were marginally more likely to fail phishing tests, suggesting that repetition of conventional content may contribute to disengagement or “training fatigue.”

Marginal benefits of embedded training

One subtle exception was observed: participants who encountered an embedded, real-time phishing intervention—such as an immediate notification when clicking on a simulated phishing link—showed an extremely modest reduction in subsequent failures, amounting to only a 1.7% improvement.

The result, however, underscores the overall minimal impact of traditional training approaches.

The research highlighted the scale of the problem. More than half of all users (56%) clicked on at least one fabricated phishing email during the study period.

Repeated susceptibility was substantial, with approximately 26% of users failing two or more simulations, and nearly 10% falling for at least three out of ten attempts. Notably, one individual responded to every single phishing simulation.

The most effective phishing lures were themed around ubiquitous workplace scenarios, such as vacation policy updates, dress code notifications, and traffic ticket warnings.

The most successful campaign, purportedly from human resources about an “Updated vacation and sick time policy,” deceived 30.8% of recipients.

Analysis of user behaviour during post-failure training sessions revealed worrying levels of disengagement. Over half of sessions lasted fewer than ten seconds, and less than a quarter of participants completed the training material in full. This pattern suggests that many employees view such training solely as a compliance exercise rather than a meaningful educational opportunity.

Implications and recommendations

Despite substantial organisational efforts, failure rates consistently exceeded 15% in most phishing simulations, regardless of training frequency or form.

The study did not propose specific solutions, but it emphasised the urgent need for future initiatives to focus on improving user engagement and the overall effectiveness of phishing awareness strategies.

Based on robust empirical evidence, the researchers concluded that organisations should recalibrate their expectations regarding the impact of both annual security awareness training and standard embedded phishing interventions as they are typically implemented today.

Xiaomi plots European EV push on back of China boom

Mohammed Fahad

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August 20, 2025

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Xiaomi plots European EV push on back of China boom

Company delivered 81,302 EVs in just one quarter, a staggering 197.7% year-on-year increase.
If it can translate its China playbook to European soil, the continent’s EV scene could be in for quite the shakeup.

China’s Xiaomi Corporation is plotting a bold leap beyond its homeland: the company has officially set its sights on entering the European electric vehicle (EV) market by 2027.

The ambition follows a period of remarkable domestic progress that’s caught the attention of the global auto and tech scenes.

Xiaomi’s announcement was timed just after releasing a set of stellar financials for the June quarter, which saw a 30.5 per cent jump in quarterly revenue—topping out at 116 billion yuan (around $16.2 billion).

The engine behind this surge? The company’s new smart EV push, its growing AI initiatives, and other new ventures, which contributed 21.3 billion yuan in the second quarter of 2025 alone.

What’s even more impressive is Xiaomi’s performance in vehicle sales: The company delivered 81,302 EVs in just one quarter, a staggering 197.7 per cent year-on-year increase.

Their growing EV footprint now includes 335 retail and service centres in 92 Chinese cities—an impressive net addition of 100 centers in just three months.

Trimming losses

Despite heavy investment in automotive innovation, Xiaomi is making progress toward profitability: the EV division’s losses slimmed down to roughly 300 million yuan and its overall gross margin (counting EVs and AI) spiked to 26.4 per cent for Q2, a major leap from last year’s 15.4 per cent margin.

Zooming out, the entire Chinese auto industry is enjoying a renaissance. In July 2025, Chinese brands sold 2.59 million vehicles—up nearly 15 per cent year-on-year—according to the China Association of Automobile Manufacturers.

Export growth outpaced even domestic sales, jumping 23 per cent to 575,000 units, showing Chinese ingenuity is making its presence felt worldwide.

Milestones

June saw another Xiaomi milestone with the debut of the YU7, its first battery-electric SUV. The local buzz was electric—over 200,000 orders rolled in just one hour after launch, underlining Xiaomi’s pull with tech-forward Chinese drivers.

Not content to rest, Xiaomi locked down a 50-year lease in Beijing for more than 485,000 square meters. The space will serve as a nucleus for smart automotive and component manufacturing, adding muscle to the company’s vertical integration strategy.

And let’s not forget financing: back in March, Xiaomi made headlines by raising $5.5 billion via a major share placement, securing ample resources to fuel both Chinese operations and the hoped-for European debut.

iPhone 17 marks Apple’s first full transition of production to India

Ana Mary Joseph

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August 20, 2025

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iPhone 17 marks Apple’s first full transition of production to India

Tata is set to handle up to half of all iPhones made in India over the next two years.
Just in the four months since April, Apple has exported iPhones worth $7.5b from India, already approaching half of last year’s $17b tally.

Apple is taking a major leap in its global manufacturing strategy by producing all four models of its forthcoming iPhone 17 series in India, a first for the tech giant.

This includes the much-anticipated Pro line, as the company prepares for the September 2025 launch. According to sources, every new iPhone variation destined for markets worldwide—including the US—will ship from India right from day one.

Major manufacturing shift

The move highlights Apple’s acceleration in shifting away from Chinese-based production for US-bound devices. Motivated by ongoing tariff disputes, geopolitical pressures, and previous Covid-linked disruptions in China, Apple has now ramped up its local manufacturing to a total of five Indian plants—two of which have only recently begun operations.

The clear aim: fulfill the lion’s share of America’s iPhone demand from India going forward.

A big piece of this puzzle involves Indian conglomerate Tata Group. Through its state-of-the-art facility in Hosur, Tamil Nadu, and a new partnership with Foxconn near Bangalore airport, Tata is set to handle up to half of all iPhones made in India over the next two years.

Just in the four months since April, Apple has exported iPhones worth $7.5 billion from India, already approaching half of last year’s $17 billion tally. Industry sources mark these numbers as factory gate prices, underlining just how fast Apple’s India manufacturing engine is accelerating.

Financial & strategic impacts

Apple’s ongoing geographical pivot is fueled by both necessity and strategy. The company is facing a projected $1.1 billion hit from trade tariffs this period alone.

Although electronics like iPhones are, for now, generally exempt from sector-wide US tariffs, each device may still incur their own individual country import duties.

Over the 12 months through March 2025, $22 billion worth of iPhones were assembled in India—already accounting for a staggering 20% of global iPhone output.

The shift that began with Covid-related shutdowns in China is only strengthening in the face of trade disputes and unpredictable tariff policies, including those held over from Trump-era policy.

Apple’s vote of confidence in India

Beyond manufacturing, Apple is cementing its long-term presence in India with a massive 10-year lease for roughly 270,000 square feet of office space in Bangalore.

The lease, which covers nine contiguous floors (5th through 13th) in the Embassy Zenith tower, begins in April 2025. With a starting rent of Rs235 per square foot and a deposit exceeding Rs31 crore, the deal will see rents increase by 4.5 per cent annually—bringing the total outlay well beyond Rs1,000 crore over the decade, according to Propstack’s documentation.

Apple’s commitment is significant: this investment occurs even as US President Donald Trump has criticised the company’s expansion in India. Yet, Apple remains the largest mobile phone exporter from India, sending iPhones worth Rs1.5 lakh crore overseas in the 2024–25 financial year alone.

The new Bangalore campus will play host to Apple’s growing teams of engineers, while its reach already extends to other tech hubs like Hyderabad.

Spanning both manufacturing and office functions, Apple’s wide-ranging bets in India reaffirm the country’s role as a central pillar in the company’s future—both as a global production base and a strategic international market.

When love gets digital: Emotional risks of human-AI attachments

Mohammed Fahad

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August 19, 2025

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When love gets digital: Emotional risks of human-AI attachments

For now, being aware of the risks is the first step toward a healthier, more balanced coexistence with our digital friends.
It’s a double-edged sword: feelings of intimacy and acceptance can grow, but they may come at the expense of real human connections.

It’s a new era of relationships, and not all of them are with people. As AI chatbots become more immersive and emotionally convincing, stories are emerging from around the world of individuals developing deep—and sometimes troubling—attachments to these digital companions.

Take the recent case of Jiang, a 75-year-old retiree in China. Jiang became so emotionally invested in an AI chatbot named “A” that he contemplated divorcing his wife. Hours each day were spent sharing feelings and receiving instant empathy and affection from the bot.

As Jiang felt increasingly supported by his virtual confidante, the emotional distance between him and his real partner began to widen. Only after opening up to his family did Jiang finally confront his growing attachment, and his sons helped him understand the bot’s true nature before he reconsidered splitting from his wife.

Jiang’s story is just one among many. Around the globe, others are navigating similar entanglements. In Thailand, 76-year-old Thongbyu “Buy” Wongbandyu arranged to meet an AI-powered digital companion—Meta’s “Big Sis Billie”—in New York, persuaded by the sophistication of the bot.

Love bomb

Meanwhile, some users share online testimonials of partners spending hours engaged in deep, affectionate exchanges with anime-inspired chatbots, creating real friction in their offline relationships.

AI chatbots excel in offering kindness, compliments, and emotional validation with impressive rapidity. For people—especially those who are isolated, lonely, or vulnerable—these qualities make bots compelling sounding boards.

It’s a double-edged sword: feelings of intimacy and acceptance can grow, but they may come at the expense of real human connections.

Experts are sounding the alarm about AI’s potential to “love-bomb” users, blitzing them with attention and validation in a way that can be hard to resist or even distinguish from genuine human interaction.

Monitoring emotional health

The phenomenon is especially concerning for older users, who may not realise how artificial these affections are. The increasingly human touch of chatbots raises urgent questions about psychological well-being and the boundaries of technology.

Safeguarding measures are overdue. Building in daily usage limits, regular reminders that the AI is not a sentient being, and providing tools to monitor emotional health could help prevent users from tumbling too deep into digital romance.

The goal is not to demonise the technology—many find comfort and fun connecting with AI—but to protect vulnerable individuals and keep the line between help and harm from blurring.

As AI gets closer to imitating real emotion, our relationship with technology is due for a reality check. For now, being aware of the risks is the first step toward a healthier, more balanced coexistence with our digital friends.

Databricks valuation crosses $100b amid new funding on AI momentum

Naushad K. Cherrayil

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August 19, 2025

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Databricks valuation crosses $100b amid new funding on AI momentum

Demand for AI-driven applications and automated agents has reached unprecedented heights, transforming data into powerful assets for organisations worldwide, CEO says.

Databricks, the San Francisco-based analytics powerhouse, is making headlines again after revealing plans for a new funding round that would catapult its valuation over $100 billion—a remarkable 61% leap from its previous round less than a year ago.

The surge is the latest example of investors’ insatiable appetite for artificial intelligence firms blazing new trails in data analytics and machine learning.

With an impressive customer roster including Block, Shell, and Rivian, Databricks continues to anchor itself at the heart of the AI revolution. Its global clientele of approximately 15,000 companies signals just how embedded it has become in the digital strategies of leading enterprises.

Investor enthusiasm

The company’s CEO and co-founder, Ali Ghodsi, couldn’t suppress his excitement, noting that demand for AI-driven applications and automated agents has reached unprecedented heights, transforming data into powerful assets for organisations worldwide.

Although the exact amount raised wasn’t disclosed, Databricks confirmed that it has inked a term sheet for a hotly anticipated Series K investment.

The firm’s prior round last year—the monumental $10 billion raise that set a benchmark in venture capital—had valued the company at $62 billion, highlighting the acceleration in its growth trajectory.

Databricks plans to channel the fresh influx of capital into developing new products and pursuing strategic acquisitions across the artificial intelligence sector.

The move aligns with the broader corporate and governmental race to harness the power of rapidly advancing AI technologies, where transforming raw data into actionable intelligence is becoming critical to competitive advantage.

The investor enthusiasm swirling around Databricks this year is a testament to the company’s relentless pursuit of innovation, as well as to the larger narrative: AI is reshaping not only technology but the very future of business and society.