Report Overview

Rising consumer demand for flexible payment options, increased corporate use for employee rewards, and the growth of e-commerce and digital transactions fuel the growth of Saudi Arabia Gift Card and Incentive Card Market during the forecast period between 2024 and 2030

Saudi Arabia Gift Card and Incentive Card Market – Industry Trends & Forecast Report, 2030

Saudi Arabia Gift Card and Incentive Card Market size by value was estimated at USD 1,549.60 million in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Gift Card and Incentive Card Market size is expected to expand at a CAGR of 9.50% reaching a value of USD 2,923.21 million by 2030. Saudi Arabia Gift Card and Incentive Card Market is driven by increasing digitalization and e-commerce adoption, a rising trend of cashless transactions, and a growing corporate culture that uses gift cards for employee rewards and customer loyalty programs. Additionally, the convenience and flexibility of gift cards, along with the rising disposable income and consumer preferences for personalized gifts, contribute to market growth. Government initiatives promoting electronic payments further boost the expansion of the market.

Gift Cards and Incentive Cards – Overview

Gift and incentive cards are prepaid cards used for gifting and rewarding purposes. They are issued by retailers or financial institutions and are popular for personal gifts and corporate incentives. Incentives are used by businesses to motivate employees, boost sales, and encourage customer loyalty. Both types support a cashless economy and offer convenience, security, and tracking of spending. The Saudi Arabian Market for Gift Card and Incentive Card continues to grow due to consumer preferences and business needs.

Saudi Arabia Gift Card and Incentive Card Market     

Growth Drivers

Growing E-commerce Sector in Saudi Arabia

The rapid expansion of e-commerce in Saudi Arabia significantly fuels the growth of the gift card and incentive card market. As online shopping becomes increasingly popular, consumers are turning to digital gift cards for their convenience and flexibility. E-commerce platforms offer a broad range of products and services that can be purchased using gift cards, driving their adoption and enhancing market growth. The rise of digital transactions further supports this trend, boosting the overall market potential.

Challenges

Short Term Validity of Gift Cards

Saudi Arabia Gift Card and Incentive Card Market has seen a rise in short-term validity gift cards, typically expiring within a year. This trend is driven by businesses aiming to boost short-term sales and encourage immediate use by consumers. The short validity period also reduces the liability of outstanding balances on corporate books, while promoting a rapid turnover of gift cards. Consumers, in turn, are incentivized to quickly redeem their cards, enhancing market dynamism.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Gift Card and Incentive Card Market     

Escalating geopolitical tensions can significantly impact Saudi Arabia Gift Card and Incentive Card Market. Heightened instability may disrupt supply chains, affecting card production and distribution. Investor confidence could decline, leading to reduced funding and slower market growth. Additionally, economic sanctions or trade restrictions might limit the availability of international gift card brands, constraining consumer choices. On the consumer side, economic uncertainty can alter spending habits, reducing discretionary purchases like gift cards. Conversely, companies may increase incentive card usage to boost employee morale amid challenging times. Overall, while geopolitical tensions present obstacles, they could also drive innovative approaches within the local market to mitigate risks and sustain growth.

Saudi Arabia Gift Card and Incentive Card Market

Segmemtal Information

Saudi Arabia Gift Card and Incentive Card Market – By Card Type

By card type, Saudi Arabia Gift Card and Incentive Card Market is divided into Open-Loop Gift Cards, Closed-Loop Gift Cards, E-Gift Cards, and Reloadable Gift Cards segments. The open-loop gift card segment is the largest card type in Saudi Arabia Gift Card and Incentive Card Market. Open-loop gift cards are widely favored because they can be used across various merchants and locations, offering greater flexibility and convenience for consumers compared to closed-loop gift cards, which are restricted to specific retailers, and e-gift cards and reloadable gift cards, which have niche uses but do not match the widespread appeal of open-loop options.

Saudi Arabia Gift Card and Incentive Card Market – By Occasion

On the basis of occasion, Saudi Arabia Gift Card and Incentive Card Market is divided into Festive Occasions (including Eid and Ramadan), Birthdays, Weddings & Anniversaries, Graduations, and Corporate Events segments. The festive occasions segment is the largest contributor to the growth of Saudi Arabia Gift Card and Incentive Card Market. This includes celebrations such as Eid and Ramadan, which are major events in Saudi culture, driving significant demand for gifts and incentive cards. These occasions often see a surge in gift-giving, making them a key focus for the market, outpacing other segments like birthdays, weddings, graduations, and corporate events.

Saudi Arabia Gift Card and Incentive Card Market – By End User

Based on end user, Saudi Arabia Gift Card and Incentive Card Market is divided into Individual Consumers and Corporate/Business segments. The corporate/business segment dominates the market, due to the increasing adoption of gift cards and incentive programs by companies as part of employee rewards and customer loyalty initiatives. Businesses often use these cards to enhance employee motivation and foster customer engagement, driving higher demand compared to individual consumer use.

Competitive Landscape

Key players in the highly competitive Saudi Arabia Gift Card and Incentive Card Market include Amazon, Tango Card, Swile, Qwikcilver, Alyce, Givingli, Ininal, Transcard, Riskified, and One4all. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Card Type

• Open-Loop Gift Cards

• Closed-Loop Gift Cards

• E-Gift Cards

• Reloadable Gift Cards

By Occasion

• Festive Occasions (Eid, Ramadan)

• Birthdays

• Weddings & Anniversaries

• Graduations

• Corporate Events

By End User

• Individual Consumers

• Corporate/Businesses

By Distribution Channel

• Online Retailers

• Offline Retailers

• Supermarkets/Hypermarkets

• Convenience Stores

• Specialty Stores

• Corporate Sales