Saudi Arabia Gift Card and Incentive Card Market Size (2024 - 2029)

The market size for gift cards and incentive cards in Saudi Arabia is experiencing significant growth, driven by the increased adoption of secure payment methods and the rising popularity of digital commerce. This expansion is particularly notable in Tier 2 and Tier 3 cities, although Tier 1 cities still lead in market share. The corporate sector's use of gift cards as rewards and incentives further fuels market growth. Technological innovations in payment solutions and the demand for branded products present additional opportunities for market expansion. However, challenges such as data security and privacy concerns may hinder growth. The closed-loop gift card segment remains dominant due to its benefits for businesses and consumers, supporting its continued prominence in the market.

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Market Size of Saudi Arabia Gift Card and Incentive Card Industry

Saudi Arabia Gift Card and Incentive Card Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.00 %
Market Concentration Medium

Major Players

Saudi Arabia Gift Card and Incentive Card Market Key Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Gift Card & Incentive Card Market Analysis

After the COVID-19 impact, the demand for gift cards has experienced significant growth due to the limited use of cash payments in the market. Apart from this, as consumers have increased the usage of more effective and secured payments for shopping online.

With several gifting occasions, the growth potential for the gift card market is huge in Saudi Arabia.The gift card adoption has been increasing in Tier 2 and Tier 3 cities though it is still dominated by Tier 1 cities. Apart from this, the wide acceptance of corporate gift cards in the form of rewards and sales incentives to recognize employee performance is further boosting the market growth. Consistent connection of consumers with shopping, owing to rapid growth in digital commerce and increase in number of new technologies that provide customers with innovative & seamless payment options are the major growth factors for the market growth. In addition, ongoing technological innovations in gift cards enable high sales in companies by making their product offerings more unique & attractive, therefore, propels the gift cards market growth.

However, ensuring secure management & privacy of consumer data is one of the major factors that limit the market growth. In addition to this, technological advancements associated with payment solutions and increase in demand for branded products are expected to provide lucrative opportunities during the forecast period. The closed-loop gift card segment dominated the gift cards market , and is projected to maintain its dominance during the forecast period. This is attributed to several benefits such as benefits providing an opportunity to businesses to make money on products purchased using gift cards and free activation for users, which, in turn, drive adoption of closed loop gift card.

Saudi Arabia Gift Card & Incentive Card Industry Segmentation

Gift Cards and Incentive Cards are used as a developmental strategy for promoting businesses, to attract new customers, increase brand awareness, reduce fraud, and improve business sales. Moreover, a gift card or incentive card can be utilized as an alternative source for money at a particular store or business store for purchases related to goods or services. An Incentive Card innovative way to reward employees. Saudi Arabia Gift Card and Incentive Card Market is segmented By Consumer, Distribution Channel and Product. By Consumer, the market is segemented into Individual and Corporate. By Distribution, the market is segmented into Online and Offline. By Product, the market is segmented into e-gift card and physical card.

By Consumer
Individual
Corporate
By Distribution Channel
Online
Offline
By Product
E-Gift Card
Physical Card
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Saudi Arabia Gift Card and Incentive Card Market Size Summary

The gift card and incentive card market in Saudi Arabia is experiencing substantial growth, driven by the increasing preference for cashless and secure payment methods, particularly in the wake of the COVID-19 pandemic. The market is witnessing a surge in adoption across various regions, with Tier 2 and Tier 3 cities showing promising growth, although Tier 1 cities still dominate. The corporate sector's acceptance of gift cards as rewards and incentives for employee performance is further propelling market expansion. The rapid advancement in digital commerce and innovative payment technologies are key factors contributing to this growth. However, challenges such as ensuring consumer data security and privacy remain significant. The closed-loop gift card segment continues to lead the market, offering businesses financial benefits and encouraging widespread adoption.

The robust expansion of the e-commerce industry in Saudi Arabia is a major driver for the gift card market, with a notable increase in online shopping due to lockdowns and rising internet and smartphone usage. This trend is particularly strong among younger consumers who favor mobile-first shopping experiences. The growing retail sector, including supermarkets, hypermarkets, and food chains, is also facilitating the increased adoption of gift cards. The market is moderately consolidated, with major players like Amazon and Tango Card, alongside emerging local players, contributing to its dynamic landscape. Strategic partnerships, such as those between Hub Engage and Tango Card, are enhancing employee engagement through gift card incentives, further supporting market growth.

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Saudi Arabia Gift Card and Incentive Card Market Size - Table of Contents

  1. 1. INDUSTRY DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Varous Regulatory Trends Shaping Gift Card and Incentive Card in Saudi Arabia

    5. 1.5 Insights on impact of technology and innovation in Operations in Gift Card and Incentive Card

    6. 1.6 Insights on Performance of Gift Card and Incentive Card in Saudi Arabia

    7. 1.7 Industry Attractiveness - Porters 5 Force Analysis

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers/Consumers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Consumer

      1. 2.1.1 Individual

      2. 2.1.2 Corporate

    2. 2.2 By Distribution Channel

      1. 2.2.1 Online

      2. 2.2.2 Offline

    3. 2.3 By Product

      1. 2.3.1 E-Gift Card

      2. 2.3.2 Physical Card

Saudi Arabia Gift Card and Incentive Card Market Size FAQs

The Saudi Arabia Gift Card and Incentive Card Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

Amazon, Tango Card, Swile, Qwikcliver and Alyce are the major companies operating in the Saudi Arabia Gift Card and Incentive Card Market.

Saudi Arabia Gift Card and Incentive Card Report Snapshots

Saudi Arabia Gift Card and Incentive Card Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)