Why Middle Eastern Retailers are Investing Big in Next-Gen Gift Cards

From USD 2,120 billion in 2024 to USD 3,028 billion by 2033 (4.04% CAGR), the Middle East retail sector is entering a period of accelerated digital expansion driven by rising consumer spending, rapid e-commerce growth, and sustained omnichannel investments. This momentum is intensifying competitive pressures, pushing retailers to differentiate faster, deepen engagement across channels, and unlock scalable, recurring revenue streams that can withstand market volatility. 

Within this environment, gift cards have shifted from being a transactional add-on to a high-ROI growth lever, driving acquisition, lifting average ticket sizes, increasing purchase frequency, and strengthening retention across both physical and digital touchpoints.  

Why Gift Cards are Retail's Revenue Engine? 

Retailers still running legacy closed-loop cards are leaving tens of millions on the table every quarter while sophisticated competitors dominate with instant issuance, seamless omnichannel redemption, and analytics that convert every gift card into a high-value customer insight.  They extend their programs far beyond traditional use cases, leveraging corporate gift cards for employee recognition to build loyalty, running customer campaigns that drive repeat purchases, powering seasonal promotions to boost engagement, enabling controlled expense allocation with full transparency, and delivering personalized, co-branded gifts to strengthen client relationships. 

This evolution is increasingly evident across the region through: 

• Mobile gifting and online redemption for millennial and Gen Z audiences 

• Cross-brand, mall-wide card programs for unified retail ecosystems 

• Seamless integration with loyalty platforms, driving repeat purchases 

Forward-thinking retailers are turning this vision into reality. 

How Leading Retailers Turn Gift Cards into Growth 

Top retailers are setting examples by building comprehensive gift card programs: 

• Majid Al Futtaim (MAF) offers Mall Gift Cards integrated with the SHARE loyalty program, powering incentives and cross-brand redemptions.  

• Metro Market is leading supermarket chain in Egypt, with extensive store network and digital incentive programs. 

• AZADEA Group is a premier lifestyle retail company that owns and operates more than 40 leading international franchise concepts across the Middle East and Africa. 

• Al-Futtaim Group (AFG) provides Blue Rewards cards that allow seamless redemption at more than 500 outlets across fashion, dining, and lifestyle. 

• ALDAR’s prepaid Mastercard gift cards, linked with Darna points, unlock access to all their locations in Abu Dhabi, offering luxury-tier rewards. 

• CENOMI in Saudi Arabia operates 22 malls with over 4,300 stores, using gift cards for wide-ranging customer and employee incentives. 

• Alshaya Group offers branded eGift cards for retailers like Victoria’s Secret and Bath & Body Works, providing instant, multi-country delivery across the UAE, KSA, and Kuwait. 

These are not isolated campaigns but fully integrated platforms featuring: 

• Real-time employee recognition (instant morale boosts) 

• Data-driven personalization & breakage forecasting 

• Bulk digital issuance via WhatsApp/SMS 

• API-first POS integration and AI fraud protection 

The result? Global benchmarks show 80% higher perceived employee value and 75% stronger customer loyalty. To enable these experiences at scale, retailers need to overcome the complexities that businesses face today. 

The Hidden Hurdles Holding Retailers Back 

Even established retailers and those newly launching gift card programs face these 10 critical scaling challenges, making integrated platforms non-negotiable. 

Operational Complexity 

Setting up a gift card ecosystem requires coordination across POS systems, backend settlement, fraud controls, and issuance partners. Many retailers struggle with fragmented systems that do not talk to each other. 

Compliance & Cross-border Rules 

Progress is underway within the GCC, where central banks are rolling out projects like AFAQ to boost real-time, cross-border payments. While these initiatives pave the way for better integration, each country still has its own regulations for AML, stored value, and KYC. Retailers with multi-country operations must stay agile, as achieving seamless compliance across the region remains a challenge. 

Fraud Risks 

Gift cards are high-risk products for social engineering fraud, returns fraud, and synthetic card activations. Weak controls at the store level add to the exposure. 

Breakage, Liability, & Visibility 

Unredeemed gift card balances sit as liabilities, yet many retailers lack tools to track breakage, forecast revenue, or see where cards are redeemed. Without real-time visibility into patterns and peaks, it’s hard to turn this liability into actionable insight. 

Integration Delays 

Connecting gift card platforms with legacy POS systems, e-commerce sites, and loyalty engines often becomes a long, costly process. Many vendors in the region still rely on manual processes. 

Poor Customer Experience 

Issues like delayed activation, redemption errors, lack of digital card options, or long checkout times reduce customer satisfaction and slow adoption. 

Inventory & Distribution Challenges 

Physical gift cards require secure printing, logistics, replenishment cycles, and theft prevention, areas where many retailers lack standard processes. 

Difficulty in Partner Expansion 

Building co-branded or multi-brand gift card networks requires solid settlement and reconciliation workflows. Retailers cite these as barriers due to technical and contractual complexities. 

To capitalize on market opportunities and overcome these challenges, retailers need an innovative platform delivering real-time analytics, secure transactions, and streamlined user experiences. M2P’s platform makes that shift seamless, transforming every issued card into a measurable business impact. 

M2P’s Gift Card Platform: The Core Advantage 

M2P’s all-encompassing platform serves as the foundation of Middle East’s gifting revolution, enabling retailers to stay ahead of the competition through its cloud-native, API-first architecture, which offers: 

Faster GTM

Go live fast with quick setup at corporate and sub-corporate levels, web portals for immediate rollout, and effortless issuing of digital or physical gift cards across stores, campaigns, and digital touchpoints. 

Universal Redemption Flexibility

Enable gift card holders to redeem their value seamlessly across all group-owned brands, through merchant-level configuration, giving them ultimate freedom and a unified gifting experience. 

Deep Personalization Options

Customize cards with branded visuals, campaign-specific messages, and bespoke themes tailored for every occasion, enhancing the emotional connection with recipients. 

Full Program Control

Take charge by setting detailed issuance rules and customized onboarding templates, managing distribution workflows end-to-end, and leveraging M2P’s expansive business network to extend the reach to targeted audiences. 

Advanced Analytics and Insights

Harness rich data and real-time analytics to measure campaign performance, optimize marketing strategies, and maximize business impact, turning gift cards into a strategic growth engine. 

M2P's cloud-native, API-driven architecture empowers retailers to scale effortlessly with the region's dynamic retail demands, delivering secure, compliant, and frictionless solutions perfectly tailored to evolving consumer behaviors and business models. 

Leading the Digital Retail Transformation in the Middle East 

In a region witnessing rapid growth in e-commerce adoption and mobile wallet usage, M2P Fintech offers the complete, end-to-end toolkit needed to capitalize on the region’s digital renaissance. We equip businesses to launch stand-out gift card programs that are fast, secure, and irresistibly appealing to the modern customer. 

With M2P’s innovative gift card platform, businesses hold the key to creating loyalty, driving growth, and delivering exceptional experiences at every touchpoint. 

Connect with us today and step confidently into the future of retail. 

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Source: 

• Middle East Retail Market Size, Growth & Forecast 2033 

• How Gift Cards Can Cultivate Customer Loyalty | Fiserv 

• AZADEA | RLC Global Forum 

• Cenomi Centers 

• Majid Al Futtaim launches loyalty programme SHARE 

• Darna Website 

• Alshaya Group launches eGift card - ME Retail News