DUBLIN: The "Saudi Arabia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.

Saudi Arabia’s gift card market is projected to grow from $1.88 billion in 2025 to $2.68 billion by 2029, at a CAGR of 9.2%. This growth is fueled by the rise of digital payment adoption, expanding e-commerce sector, and increasing consumer preference for digital gift cards. Businesses are leveraging gift cards for corporate incentives and customer engagement, while leading retailers and online platforms integrate seamless digital gift card solutions. Amazon, Jarir, Panda, HyperPanda, and Al Nahdi are among the top market players. As cashless transactions continue to rise, the shift from physical to digital gift cards is expected to accelerate.

This report provides a detailed data-centric analysis of the gift card sector in Saudi Arabia, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics.

It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

Key Insights

Saudi Arabia's gift card market is undergoing rapid expansion, supported by digital payment adoption, the rise of e-commerce, and a shift towards digital gift cards. As consumers increasingly prefer cashless transactions and online shopping, businesses are leveraging gift cards for personal gifting and corporate incentives. These factors contribute to the sector's steady growth, with projections indicating a continued upward trend over the next few years.

The market is expected to become more competitive, with companies investing in innovative digital gift card solutions and seamless integration into e-commerce platforms. The transition from physical to digital gift cards will likely accelerate, shaping the future of gifting and payment methods in Saudi Arabia. Businesses prioritizing adaptability and customer-centric strategies will be well-positioned to capitalize on the growing demand in this evolving landscape.

Strong Market Expansion

• The increasing adoption of digital payment systems and the rapid expansion of e-commerce are key factors fueling market growth. As cashless transactions gain traction among consumers, businesses are incorporating gift cards as a flexible and efficient payment and gifting option.
• The gift card market is expected to maintain its upward trajectory, becoming integral to consumer spending and corporate incentive strategies. The sector is also likely to witness innovations in gift card offerings to accommodate a broader range of customer needs and preferences.

Shift Towards Digital Gift Cards

• Saudi consumers are increasingly favoring digital gift cards over traditional physical versions. This transition aligns with a broader global shift toward digital payment solutions and online transactions.
• The proliferation of smartphones and improved internet infrastructure has accelerated the adoption of digital gift cards. Consumers value the ease of instant delivery and the flexibility of redeeming digital cards across online and offline retail channels.
• The growing preference for digital gift cards is expected to gradually decline the demand for physical cards. Retailers and service providers will likely enhance their digital gift card platforms to improve user experience and increase customer engagement.

Increasing Gift Card Integration with E-Commerce

• More e-commerce platforms in Saudi Arabia are integrating gift card solutions, enabling seamless purchases and redemptions through digital storefronts. This trend is enhancing consumer convenience and diversifying online payment options.
• The rapid growth of the e-commerce industry, coupled with evolving consumer shopping behaviors, has encouraged retailers to introduce alternative payment and gifting solutions. Gift cards provide customers with flexible payment options while fostering brand loyalty and repeat purchases.
• With the continued expansion of e-commerce, gift card integration is likely to become a standard feature among major online retailers. This shift is expected to drive increased sales of digital gift cards and enhance customer retention strategies.

Competitive Landscape of the Saudi Arabia Gift Card Market

The Saudi Arabian gift card market is on a strong growth trajectory, driven by the increasing adoption of digital payment solutions and the expansion of e-commerce. Local and international players actively enhance their offerings, leveraging digital innovations to cater to evolving consumer preferences. As cashless transactions gain prominence, the demand for digital gift cards is expected to rise, fostering greater market competition and diversification. Continued advancements in payment technologies, strategic partnerships, and regulatory oversight will likely shape the competitive landscape. Companies focusing on enhancing their digital platforms, integrating with e-commerce ecosystems, and ensuring compliance with financial regulations will be better positioned for long-term success. The next few years present significant opportunities for market players to capitalize on emerging trends and strengthen their presence in Saudi Arabia's growing gift card sector.

Current Market Dynamics

• This growth is driven by the rising adoption of digital payment solutions and the expansion of the e-commerce sector. Consumers are increasingly favoring cashless transactions, and businesses are responding by offering gift cards as convenient payment and gifting options.

Key Players and Market Share

• The Saudi Arabian gift card market features prominent players such as Amazon, Tango Card, Swile, Qwikcilver, and Alyce, offering a range of gift card solutions catering to individual consumers and corporate clients.
• Additionally, regional retailers such as Jarir, Panda, HyperPanda, Al Nahdi, Danube, Abdullah AlOthaim Supermarket, Al Dawaa Pharmacies, and Max have established gift card programs to enhance customer engagement and loyalty.

Recent Launches and Partnerships

• In January 2024, Tiqmo partnered with Mastercard to issue prepaid cards in Saudi Arabia, enhancing the Kingdom's digital payment ecosystem and promoting cashless transactions.
• While the available sources do not detail specific recent mergers and acquisitions within Saudi Arabia, the global trend indicates a move towards consolidation to leverage synergies in the gift card sector.

Anticipated Market Evolution (Next 2-4 Years)

• The next 2-4 years, the Saudi Arabian gift card market will witness intensified competition as established brands and new entrants introduce innovative offerings. The rapid expansion of e-commerce and digital payment systems will likely accelerate the adoption of advanced platform features, enabling seamless transactions and enhanced user experiences. Companies must differentiate their offerings by providing personalized and flexible gift card solutions to meet evolving consumer demands.
• Strategic collaborations and potential mergers will be crucial in shaping the market landscape, allowing businesses to expand their reach and leverage technological advancements. As digital payment ecosystems mature, market players focusing on integrating loyalty programs, cross-platform usability, and corporate incentive solutions will gain a competitive edge. The evolving regulatory environment and shifts in consumer preferences will further drive industry players to innovate and refine their strategies to remain competitive in Saudi Arabia's growing gift card sector.

Regulatory Changes

• Saudi Arabia's gift card market continues to operate under the regulatory oversight of the Central Bank of Saudi Arabia (SAMA), which enforces compliance requirements for financial transactions. While no significant new regulations have been introduced in the past six months, businesses in the sector must adhere to existing consumer protection laws that ensure fair practices in issuing and redeeming gift cards. These regulations aim to enhance transparency and prevent fraudulent activities within the industry.
• As the digital payments landscape evolves, regulatory authorities may introduce new measures to address emerging concerns such as anti-money laundering (AML) compliance and data security in electronic transactions. Companies operating in the gift card sector should monitor regulatory developments proactively to ensure compliance and mitigate potential risks. Adapting to future policy changes will be essential for sustaining consumer trust and ensuring long-term growth in the market.

Companies Featured

• Jarir
• Panda
• HyperPanda
• Al Nahdi
• Danube
• Abdullah AlOthaim Supermarket
• Al-Dawaa pharmacies
• Amazon
• Tamimi Markets
• LuLu Hypermarket

Key Attributes:

Report Scope

This report provides in-depth, data-centric analysis of gift card industry in Saudi Arabia through 100+ tables and 280+ charts. Below is a summary of key market segments.

Saudi Arabia Total Spend on Gifts

• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Saudi Arabia Gift Card Market Size by KPIs across Consumer Segments

• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Saudi Arabia Gift Card Market Size by Consumer Segment

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Saudi Arabia Digital Gift Card Market Size

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Saudi Arabia Gift Card Market Size by Retail Consumer

• By Functional Attribute
• By Occasion
• Festivals & Special Celebration Days
• Milestone Celebration
• Self-Use
• Other
• Value by Purchase Channel

Saudi Arabia Gift Card Spend by Consumer Behavior and Demographics

• Gift Card Spend by Payment Method
• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Saudi Arabia Gift Card Market Size by Corporate Consumer

• By Functional Attribute
• By Occasion
• Employee Incentive
• Sales Incentive
• Consumer Incentive
• By Scale of Business

Saudi Arabia Gift Spend by Product Categories (Split by Retail and Corporate Consumers)

• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Saudi Arabia Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)

• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Saudi Arabia Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Saudi Arabia Gift Card Purchase by Payment Method

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• BNPL & Other Digital Payment
• Cash

For more information about this report visit https://www.researchandmarkets.com/r/tkvmsl

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Fonte: Business Wire