As Eid Al Adha begins, UAE consumers are tapping into eGift cards or digital gift cards, combining the age-old custom of Eidiya with the modern need for convenience, flexibility, and personalisation.
A recent survey by YOUGotaGift and YouGov revealed that nearly three out of five UAE consumers (62 per cent) favoured receiving gift cards from a preferred brand over traditional gifts.
Furthermore, 77 per cent of Emirati consumers indicated a stronger preference for a gift card over a traditional gift.
UAE digital gift cards
YOUGotaGift has noticed an increased uptake in Eidiya eGift Card purchases year-over-year since 2022. This growth trajectory indicates a broader consumer trend toward digital solutions offering convenience and a personalised touch.
To better understand consumer preferences, the company partnered with YouGov to conduct an online survey of more than 1,000 UAE respondents.
Husain Makiya, CEO, YOUGotaGift, said: “Gift cards have grown in popularity over the years, given their versatility, convenience, and ease of use among consumers and businesses alike.
“This new survey provides valuable insights into the evolving gift card preferences among UAE nationals and expatriates, demonstrating a strong preference for new-age digital gifting solutions that provide flexibility and freedom of choice.”
Perhaps one of the most compelling findings pertains to the corporate domain, where 68 per cent of employed respondents indicated their preference for receiving gift cards rather than traditional corporate gifts from their employers.
This revelation presents organisations with a well-timed avenue to explore innovative employee engagement, recognition, and rewards centred around gift card offerings.
Makiya said: “The UAE is home to a burgeoning youth population that is highly digitally savvy, bolstered by supportive government initiatives in the digital sphere. Organisations in the UAE must adapt to the country’s evolving rewarding patterns and preferences.
“Digital gift cards present an excellent avenue to drive innovative, engaging employee rewards programs that resonate with this tech-forward workforce”.
Nearly four out of five (77 per cent) of Emirati employees said they prefer gift cards over conventional corporate rewards, compared to 67 per cent of expatriates.
This bias towards gift cards grows as employees climb the income ladder, with an average of 76 per cent of employees earning more than AED10,000 ($2,700) a month choosing a gift card over other traditional rewards.
The survey also reiterated the growing adoption of gift cards in the country, highlighting that more than three out of five (66 per cent) of UAE consumers have bought or received a gift card in the previous six months or more, with nearly four in 10 (39 per cent) saying they purchased or received a gift card in the six months prior.
The survey delved into various demographic segments, uncovering nuanced gift card preferences. It found that the appetite for gift cards was particularly pronounced among males (64 per cent), married individuals (65 per cent), and working professionals (64 per cent).
Notably, the results underscore a robust appetite for gift cards across all age groups in the UAE, with a pronounced preference towards digital gift card (eGift card) solutions.
More than half of UAE consumers (54 per cent) said they prefer an eGift card to a physical one. In addition, younger consumers (between 18-44 years) showed a higher preference for eGift cards at 54 per cent, compared to 51 per cent of those over 45.
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