Middle East & Africa Gift Card Market Outlook, 2029

Middle East & Africa Gift Card Market Outlook, 2029

The Middle East and Africa (MEA) gift card market has experienced notable growth as it becomes an increasingly popular payment method across various industries. With the growing demand for cashless transactions, the appeal of gift cards extends beyond personal gifting to include corporate and promotional uses. The market is bolstered by factors like the rising number of internet users, the popularity of e-commerce platforms, and the region's expanding retail sector. Gift cards offer a versatile and convenient alternative for consumers seeking a way to manage their spending while also providing retailers with a powerful tool to drive customer loyalty and sales. Particularly in regions with a high expatriate population, gift cards are also becoming a common form of sending money back home, further contributing to the market’s expansion. The appeal of gift cards, coupled with their flexibility, has created a dynamic market that holds significant promise for both retailers and consumers across the MEA region.

According to the research report, ""Middle East & Africa Gift Card Market Outlook, 2029,"" published by Bonafide Research, the Middle East & Africa Gift Card market is anticipated to add to more than USD 46.35 Billion by 2024–29. In the MEA region, the gift card market has seen a rise in digital and virtual gift cards as consumers increasingly turn to online platforms for shopping. This shift is supported by the region’s growing internet penetration and mobile payment adoption. Additionally, the popularity of gift cards in corporate incentives and employee rewards programs has increased, as businesses seek ways to engage and motivate their workforce. Government regulations in some countries, particularly around anti-money laundering and data security, are influencing the design and distribution of gift cards, ensuring that the sector remains compliant with international standards. Technology continues to play a pivotal role, with advancements in digital wallets, contactless payments, and mobile applications streamlining the gifting process. While no single company dominates the MEA market, several global players, such as Amazon and Visa, maintain a strong presence due to their established brands and partnerships with local retailers. The competitive landscape is also shaped by regional players offering customized solutions to cater to local preferences. As the market continues to grow, more companies are entering the space, capitalizing on the potential of gift cards to become a key component of both consumer spending and corporate strategy.

Market Drivers

• Increase in Cashless Transactions: Cashless payment systems are becoming increasingly popular in the MEA region due to their convenience and security. Gift cards are an essential component of this shift, as they offer a safe and easy way to pay for goods and services. Consumers are increasingly using gift cards for everyday transactions, leading to greater demand. Furthermore, both online and in-store gift card options provide flexibility and ease of use, making them a preferred payment method in cashless societies.

Market Challenges

• Security Concerns and Fraud Risk: One of the major challenges faced by the MEA gift card market is the risk of fraud and cyber threats. As digital payments become more widespread, the risk of hacking, identity theft, and fraudulent activities increases. Consumers and retailers need to ensure robust security systems are in place to protect gift card transactions. Security breaches can lead to significant losses and affect customer trust in using gift cards as a reliable payment method.
• Limited Awareness in Certain Markets: Despite the growing popularity of gift cards in many parts of the MEA region, there is still limited awareness in some markets. Consumers may not fully understand the benefits of gift cards or may be unfamiliar with how to use them effectively. This lack of knowledge can slow down the adoption of gift cards in these areas, especially in smaller or rural markets where digital payment methods are less established. More awareness campaigns are needed to educate the public about the advantages of using gift cards.

Market Trends

• Gift Cards as Corporate Incentives: The use of gift cards as part of corporate incentive programs is rapidly increasing in the MEA region. Companies are leveraging gift cards to reward employees, incentivize sales teams, or as part of promotional activities. This trend is driven by the ease and flexibility gift cards offer, allowing businesses to tailor rewards to individual preferences. As the corporate sector continues to focus on improving employee engagement and customer retention, the demand for gift cards in incentive programs is expected to rise.

Closed-loop gift cards dominate the MEA gift card market due to their flexibility and ease of use

Closed-loop gift cards dominate the MEA gift card market due to their flexibility and ease of use. These cards are issued by specific retailers or service providers and can only be redeemed within their designated networks. The popularity of closed-loop cards in the region is driven by several factors. First, they cater to the growing trend of consumer loyalty, where customers are encouraged to shop repeatedly with a particular brand or retailer. The closed-loop model provides retailers with an opportunity to boost brand engagement and retain customers by offering specialized rewards. Additionally, closed-loop gift cards are increasingly used in promotional campaigns and marketing efforts, creating a direct link between the consumer and the brand. The low price range of these gift cards makes them highly attractive to a broad demographic, including budget-conscious consumers, young adults, and those seeking convenient gifting options. Low-value cards, typically ranging from $10 to $50, make it easier for consumers to give meaningful but affordable gifts, especially in regions with diverse populations. This price point also allows for a more extensive customer base, as low-cost gift cards are seen as accessible and practical for everyday use. In a region like MEA, where affordability plays a key role in consumer behavior, closed-loop cards with a low price range align perfectly with local purchasing power and gifting traditions, contributing to their dominance in the market.

Retail establishments are the leading end users of gift cards in the MEA region, primarily due to the robust retail sector's ability to leverage gift cards for both customer engagement and revenue generation.

Retail establishments are the leading end users of gift cards in the MEA region, primarily due to the robust retail sector's ability to leverage gift cards for both customer engagement and revenue generation. Retailers have long recognized the benefits of offering gift cards, particularly as they serve as a tool for boosting sales and brand loyalty. Gift cards allow retail businesses to attract customers who may not otherwise visit their stores or online platforms. By offering gift cards, retailers tap into the consumer gifting market, turning seasonal or occasion-driven shopping into a year-round revenue stream. Moreover, gift cards also encourage repeat purchases, as recipients are more likely to return to the store to redeem them. In the MEA region, the retail sector is one of the most dynamic and fast-growing industries, with an increasing number of both international and regional players expanding their presence. Retail establishments in major markets like the UAE, Saudi Arabia, and Egypt are investing heavily in gift card offerings, both physical and digital. This is driven by the widespread popularity of e-commerce, where consumers prefer the ease and convenience of purchasing gift cards online. Furthermore, retailers in MEA are using gift cards to complement loyalty programs, offering them as rewards to encourage consumer retention and incentivize repeat business. With these factors combined, retail establishments continue to dominate the MEA gift card market, driving its growth and evolution.

South Africa stands out as the leading country in the MEA gift card market due to its advanced infrastructure, growing e-commerce sector.

South Africa stands out as the leading country in the MEA gift card market due to its advanced infrastructure, growing e-commerce sector, and increasing adoption of digital payment methods. The country has one of the most developed retail and payment ecosystems in the region, making it a hub for the expansion of gift card offerings. A key factor contributing to South Africa’s dominance in the gift card market is its large consumer base, which is tech-savvy and increasingly engaged in digital transactions. South Africa is also home to a highly developed banking sector, which supports seamless gift card transactions, both online and in-store. The country's growing e-commerce industry has significantly boosted the demand for gift cards. As more South Africans turn to online shopping, digital gift cards have become an attractive option, providing consumers with flexibility and ease of use. The rise of mobile commerce is another driving force, as many retailers now offer gift cards integrated with mobile wallets and apps, allowing consumers to use them effortlessly on their smartphones. This shift towards digital solutions aligns with the global trend of cashless payments, contributing to South Africa’s leadership in the gift card market. Moreover, South Africa’s diverse population, which includes a mix of different income levels and cultural preferences, has made the country an ideal market for various types of gift cards, including low-value closed-loop cards and branded gift cards. Retail establishments in South Africa are quick to adopt these gift cards as part of their loyalty programs and promotional efforts, further driving market growth. Its forward-thinking approach to consumer payments and gift card adoption ensures its continued dominance in the region.

Considered in this report
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.