Images: Supplied
If you live in the UAE, chances are your phone has several loyalty apps. From groceries and gas to dining and fashion, there’s a rewards programme for nearly everything.
It’s a sign of just how fast the loyalty space has grown. But somewhere between collecting points at the pharmacy and earning cashback at the cinema, these questions keep coming up: are these programmes driving real loyalty and do customers actually see their value?
According to Adyen UAE Retail Report 2025, which draws on insights from a local survey, 55 per cent of shoppers say loyalty programmes often ask too much – whether it’s time, effort, or data. And more than half aren’t sure the rewards are worth it. But here’s the paradox: 62 per cent of UAE consumers say they’re more likely to shop with brands that offer loyalty programmes.
Where does loyalty stand in the country
The UAE’s loyalty programme market is projected to grow to 817.6 million by 2029 at a compound annual growth rate (CAGR) of 13.6 per cent. That’s why brands continue to invest.
Of the retailers we surveyed, 37 per cent said they already have loyalty schemes in place, while another 23 per cent plan to launch one within the next year. But the disconnect is clear: 53 per cent of consumers say most programs rarely offer rewards they actually want.
The loyalty paradox: what went wrong?
Loyalty programmes started with a clear purpose: reward frequent shoppers and foster long-term relationships. But many have become hollow point-collection systems that miss the mark on real engagement.
Today’s consumers want more than discounts, they want recognition, exclusive access and experiences tailored to their preferences.
The real issue isn’t weak rewards, it’s the lack of emotional connection. The best loyalty programmes give people something they remember.
How can UAE retailers fix the problem?
Hyper-personalisation over generic rewards
Customers no longer respond to blanket discounts. Instead, they expect rewards tailored to their individual purchasing habits, including personalized recommendations and offers, through to more exclusive rewards for high-end purchases, such as early access to new collections and VIP event invitations.
Take a regular supermarket shopper. If they consistently buy the same items, like a specific brand of coffee, cereal, or pet food, they’re far more likely to respond to personalised offers on related products rather than receiving discounts on things they don’t buy.
In the UAE, brands are beginning to explore AI-powered loyalty programmes that make this real. These systems can analyse data in real time and deliver bespoke offers that feel curated, not automated.
This is where personalisation makes all the difference.
Advanced segmentation is also key. Instead of treating all customers the same, retailers can create micro-segments based on shopping behavior, preferences, and even emotional triggers. That could mean limited-time offers landing just before the weekend for casual browsers, tailored promotions on wellness products for health-conscious shoppers, or early access to exclusive drops for customers who consistently spend at the higher end.
Multi-brand ecosystems = greater value
The future of loyalty lies in collaboration. Customers are more likely to stay engaged when they can earn and redeem rewards across a wider network of brands – especially those they interact with regularly.
Think earning points at a grocery store and using them for discounts on a food delivery app, or collecting rewards at a fuel station that can be redeemed at a pharmacy or retail chain. These kinds of everyday connections make loyalty programmes more practical, more integrated into people’s routines and ultimately harder to ignore.
They also create what’s often referred to as “stickier” loyalty. Once customers start building value across multiple brands they trust, they’re far less likely to drop out and more likely to keep coming back.
AI & fintech: the next loyalty frontier
Loyalty programmes only work if they’re easy to use. No one wants to scroll through multiple apps or jump through hoops to redeem a basic reward. The more seamless the experience, the more likely people are to engage.
This is where technology is starting to make a real difference. In the UAE, more brands are experimenting with tools that use AI to anticipate what customers might want next – like flagging when someone hasn’t engaged in a while and automatically triggering a relevant offer to bring them back based on their purchase history and browsing behaviour.
Fintech is playing a role too. Some programmes now allow instant point redemption at checkout, automatic cashback into digital wallets and seamless cross-brand redemptions without app switching.
When it’s working well, customers don’t have to think about how to use the program. It just happens in the background and it makes the experience feel more rewarding without being complicated.
The road ahead: loyalty as a strategic differentiator
The next era of loyalty won’t be about points. It will be about personalised value, seamless experiences and genuine relationships. UAE brands have the tools – and the data – to lead this shift, but it starts with rethinking what loyalty actually means to their customers today.
Programmes that understand how people shop, fit into their routines and offer something useful without overcomplicating things. That’s what will make them stick.
The writer is the head of Adyen Middle East.
Read: Here are 6 ways how retail will be different by 2035, reveals report
