According to PayNXT360, the loyalty market in the country is expected to grow by 10.0% on an annual basis to reach US$1,149.0 million in 2024.

In value terms, the loyalty market in the country has recorded a CAGR of 11.6% during 2019–2023. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 8.8% during 2024-2028. The loyalty market in the country will increase from US$1,044.8 million in 2023 to reach US$1,612.0 million by 2028.

The loyalty program market is expected to record steady growth over the medium term in Saudi Arabia. The rising adoption is prompting the launch of new product launches, as firms seek to leverage loyalty programs to drive sales and revenue in the Kingdom. Furthermore, firms are also entering into strategic partnerships to provide more value to their loyalty program members.
The trend is projected to continue further in 2024, aiding the competitive landscape and innovation in the loyalty programs sector. Global players are also expected to increase their investment in the sector to tap into the rising adoption among consumers in the Kingdom. Overall, PayNXT360 maintains a positive growth outlook for the loyalty program market in Saudi Arabia over the next three to four years.

Government entities are launching loyalty programs to boost employee productivity and efficiency

To promote a culture of job excellence and drive employee productivity and engagement, government organizations are seeking to leverage loyalty programs in the Kingdom of Saudi Arabia.
• The Ministry of Human Resources and Social Development, in September 2023, launched the employee loyalty program DOAM. The loyalty program provides special deals for government employees, available through over 2,500 service providers across all areas of Saudi Arabia.
• Over 1.2 million male and female government sector workers benefit from these exclusive offers. The DOAM loyalty program is part of the government’s commitment to enhance the public sector, aligning with the vision of Saudi Arabia for 2030. It aims to invest in and develop human resources while supporting government agencies, in line with the strategic objectives set by the leadership.
Going forward, PayNXT360 expects more government organizations to launch innovative loyalty programs to boost engagement and drive productivity. This, in turn, is expected to aid the growth of the industry from the short to medium-term perspective in the Kingdom of Saudi Arabia.

Firms to forging strategic alliances to boost value offerings for their loyalty program members

Loyalty programs are a significant revenue creator for airline providers globally, and it is no different in Saudi Arabia. Consequently, to attract more members and boost value offerings for existing ones, airline carriers are entering into strategic partnerships in the Kingdom of Saudi Arabia.
• Saudi and Riyadh Air, in November 2023, entered into a strategic collaboration enabling members to benefit from shared loyalty points and synced-up booking arrangements. The agreement between the two airline carriers has enabled the provision to sell seats on each other flights. The strategic initiative is expected to enhance travel experiences across the sector, while also supporting the growth of the loyalty program market over the medium term.
PayNXT360 expects more such collaborations in the aviation sector and other industries in the Kingdom over the next few quarters. This will subsequently support the growth of the loyalty program market in Saudi Arabia over the next three to four years.

Saudi Arabia-based e-commerce marketplaces are launching loyalty programs in other regional markets

With the popularity of the loyalty programs poised to grow across the Kingdom over the medium term, Saudi Arabia-based e-commerce marketplaces are launching loyalty programs in other regional markets.
• noon, one of the leading online marketplaces in the Middle East, expanded its loyalty program for shoppers in the United Arab Emirates in 2023. The noon One loyalty program encourages shoppers to make frequent purchases by offering free deliveries on food, non-food, and grocery product categories.
From the short to medium-term perspective, PayNXT360 expects more domestic firms to launch their loyalty programs in other Middle Eastern markets. This will support the broader industry growth over the next three to four years in Saudi Arabia.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

PayNXT360 research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.