UAE Gift Card Market Outlook: Digital Gifting Trends, Retail Expansion & Growth Opportunities

According to IMARC Group’s latest research publication, the UAE gift card market size reached USD 5.7 Billion in 2024. The market is projected to reach USD 19.7 Billion by 2033, exhibiting a growth rate (CAGR) of 14.69% during 2025–2033.

How AI is Reshaping the Future of UAE Gift Card Market

Hyper-Personalized Gifting: AI analyses purchase history and browsing patterns to recommend the right gift card brand and denomination. In a recent Mastercard survey, 57% of UAE consumers said they trust AI gift recommendations over their own judgment.

Fraud Detection and Security: AI monitors millions of transactions in real-time, flagging suspicious redemption patterns. Mastercard secures over 159 billion annual transactions globally using AI — a capability being embedded into UAE gift card payment rails.

Dynamic Redemption Experiences: Machine learning enables real-time, context-aware offers at checkout, boosting redemption rates. Retailers like Noon and Amazon.ae are using AI to surface gift card prompts at the highest-converting moments in the user journey.

How UAE’s Digital Vision is Revolutionizing the Gift Card Industry

The UAE government’s commitment to becoming a 90% cashless economy by 2026 — under the Dubai Cashless Strategy and the broader D33 economic agenda — is arguably the most powerful structural tailwind behind the gift card market’s growth. Going cashless is projected to add over AED 8 billion annually to Dubai’s GDP alone, and digital payment infrastructure is being built out at speed: Aani (instant payments), Jaywan (national card scheme), and the Digital Dirham are all creating seamless rails for digital value transfer, including gift cards. Card payments in the UAE are already projected to reach AED 565.5 billion (about USD 154 billion) in a single year, with a 10.6% year-on-year uptick. The government has also established a dedicated Digital Payment Systems Regulatory Division to oversee adoption targets. For gift card players, this means more consumers are already comfortable transacting digitally, more merchants are enabled to accept digital cards, and regulatory clarity is reducing friction for new entrants.

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UAE Gift Card Market Trends & Drivers:

The most obvious driver in this market right now is the UAE’s exploding e-commerce and digital payments ecosystem. The country’s fintech market is already valued at USD 3.56 billion and is on track to more than double by 2030. Against this backdrop, digital gift cards are becoming default gifting instruments — 72% of UAE consumers now prefer e-gift cards over physical ones, according to recent market data. Platforms like Amazon.ae, Noon, and mall-based digital gifting programs are expanding denomination options and delivery formats. With 65% of UAE consumers using smartphones during their shopping journeys and online distribution already accounting for approximately 90% of Middle East gift card market share, the digital shift here is not a future trend — it’s already the present reality for most buyers and recipients.

Corporate adoption is quietly becoming one of the biggest volume drivers in this market. As UAE companies scale HR digitalization and employee engagement programs, gift cards have become the go-to instrument for rewards, incentives, and recognition. They’re auditable, cost-capped, and easy to distribute at scale — qualities that finance and HR teams love. Initiatives like UnionPay International’s branded gift card program, launched via Mint Middle East, specifically targeted corporate clients and exchange houses in the UAE as the primary addressable segment. Multi-brand platforms like GiftiGlobal (through the FNP.ae and Merit Incentives partnership) are enabling companies across the GCC to run gifting programs that work across retail, dining, and entertainment in a single card. This B2B tailwind is particularly powerful in a market with a high density of multinationals and large public-sector employers.

Retail partnerships and multi-brand innovation are reshaping how gift cards are distributed and used across the UAE. Rather than single-retailer closed-loop cards, the market is moving toward versatile multi-brand instruments that work across categories. YOUGotaGift’s ‘HappyYOU’ card, made available across all Carrefour outlets in the UAE, is a strong example: eco-friendly, instantly redeemable at multiple retailers, and available at cash counters for shoppers who prefer in-store purchase. Lulu’s LAKA Gift Card — launched across its 19 UAE malls in February 2025, powered by Visa and featuring QR-enabled personalized video messaging — takes this a step further, turning the gift card into a social and experiential product. With the Middle East gift card market expected to hit USD 6 billion by 2026 and retail channels rapidly evolving, partnerships like these are setting the pace for what consumers expect next.

UAE Gift Card Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

E-Gift Cards

Physical Gift Cards

Card Type Insights:

Closed-loop Card

Open-loop Card

Application Insights:

Food and Beverage

Health, Wellness and Beauty

Apparel, Footwear and Accessories

Books and Media Products

Consumer Electronics

Restaurants and Bars

Kids Products

Others

End User Insights:

Retail

Corporate

Regional Insights:

Dubai

Abu Dhabi

Sharjah

Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Gift Card Market

February 2025: Line Investments & Property (Lulu Group’s mall arm) launched the LAKA Gift Card across its 19 UAE malls — the region’s first gift card with QR-enabled personalized video messaging. Developed with Giftstarr and NymCard and powered by Visa, the card sets a new standard for experiential retail gifting in the GCC.

2024: YOUGotaGift partnered with Carrefour in the UAE to roll out its ‘HappyYOU’ phygital multi-brand gift card across all Carrefour stores. The eco-friendly card can be purchased at cash counters and redeemed across multiple retailers, expanding accessible multi-brand gifting options for everyday shoppers.

2024: Mint Middle East launched a UnionPay International branded gift card program in the UAE, initially targeting corporate clients and exchange houses, with plans to launch a Mastercard-branded card for retail and online channels as a next step in diversifying its gift card portfolio.

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