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Narendra Modi eyes energy deals during UAE visit

In January, India signed a $3bn deal to buy liquefied natural gas from the Gulf nation

Reuters
Reuters

14 May, 2026

Narendra Modi eyes energy deals during UAE visit
Image: Getty Images

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Article Summary
Prime Minister Modi is visiting the UAE to discuss long-term energy deals and seek support for expanding India's strategic oil reserves. The UAE, a key energy supplier for India, is Modi's first stop on a five-nation tour. Discussions with President Al Nahyan will centre on energy cooperation, amidst global supply disruptions and growing bilateral trade and defence partnerships.

Indian Prime Minister Narendra Modi will visit the United Arab Emirates briefly on Friday, where he is likely to discuss long-term energy supply deals and seek support to expand his country’s strategic oil reserves, three sources said.

The UAE will be Modi’s first stop on a five-nation tour from May 15 to 20, as the world’s third-largest energy importer seeks to secure supplies that have been badly disrupted by the U.S.-Israeli war on Iran. The UAE’s recent exit from OPEC is expected to boost its output and help countries like India.

Trips to the UAE by heads of governments have been rare since the war began and Iran launched strikes on the country.

The UAE is one of India’s biggest suppliers of crude oil and natural gas. In January, India signed a $3bn deal to buy liquefied natural gas from the Gulf nation.

Modi will meet UAE President Sheikh Mohamed bin Zayed Al Nahyan and will discuss a range of issues, in particular energy cooperation, India’s foreign ministry said. The UAE is India’s third-largest trade partner and is home to more than 4.5 million Indians.

The three Indian sources said Modi is likely to seek help with long-term supplies of cooking gas and crude oil, in addition to expanding India’s strategic reserves. They did not give additional details and declined to be named publicly because they were discussing potential government-to-government negotiations.

India has three strategic reserve facilities with a total capacity of 5.33 million metric tons (MMT) and plans to build two more with additional capacity of 6.5 MMT. India has leased about 1.5 MMT of the existing capacity to Abu Dhabi National Oil Co (ADNOC).

India’s oil and gas ministry did not respond to an email seeking comment. ADNOC declined to comment ahead of the visit and the UAE foreign ministry did not respond to an emailed request for comment.

In 2015, Modi became the first Indian premier to visit the UAE in 34 years. The upcoming trip would be his eighth.

The countries plan to double bilateral trade to $200bn in six years and form a defence partnership. India’s rival Pakistan has a defence deal with Saudi Arabia, whose rift with the UAE has widened in recent years.

From the UAE, Modi will take off for the Netherlands, Sweden, Norway and Italy.

Air India announces route cuts through August, debunks viral rumours

The clarification comes as the Tata Group-owned carrier separately announced a temporary rationalisation of select international services

Nida Sohail
Nida Sohail

14 May, 2026

Air India announces route cuts through August, debunks viral rumours

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Article Summary
Air India has refuted false claims of cancelling all international flights. While its international network remains extensive, some services will be temporarily rationalised between June and August 2026. This is due to airspace restrictions and high fuel prices. North American, European, and Asia-Pacific routes face adjustments; affected passengers will receive support.

Air India has firmly denied what it described as “malicious and fabricated” claims circulating on social media platforms alleging that the airline has cancelled all international flights, calling the reports completely false and baseless.

In a statement posted on the official Air India Newsroom account on X, the airline urged passengers to rely only on verified communication channels for updates related to its operations and schedules.

View post on X

The clarification comes as the Tata Group-owned carrier separately announced a temporary rationalisation of select international services between June and August 2026, citing continued airspace restrictions in some regions and record-high jet fuel prices affecting long-haul international operations.

Read more-Air India to operate 48 flights focused on GCC routes on March 19

According to the airline, the temporary adjustments are aimed at improving operational stability and minimising last-minute disruptions for passengers during an increasingly challenging global aviation environment.

Air India to continue extensive international operations

Despite the temporary cuts, Air India stressed that its international network remains extensive and operational across five continents.

The airline said it will continue operating more than 1,200 international flights every month, including 33 weekly flights to North America, 47 weekly flights to Europe, 57 weekly services to the United Kingdom, eight weekly flights to Australia, 158 weekly services across the Far East, Southeast Asia and SAARC regions, and seven weekly flights to Mauritius.

“Air India continues to work closely with regulators, airport authorities and industry partners to restore full capacity as soon as conditions permit,” the airline said in its official statement. It added that additional adjustments could be introduced if the extraordinary operating environment persists.

The carrier also said affected passengers would receive proactive support, including alternative flight arrangements, complimentary date changes or full refunds where applicable. Customer support services will continue through Air India’s 24×7 contact centre and digital platforms.

North America and Europe routes face major adjustments

Among the most significant changes announced are reductions and temporary suspensions across key North American and European routes.

The Delhi-Chicago service will be temporarily suspended, while flights between Delhi and San Francisco will be reduced from 10 weekly services to seven through August. Delhi-Toronto flights will be cut from 10 weekly services to five through July before returning to daily operations in August.

Air India will also reduce Delhi-Vancouver flights from seven weekly services to five. At the same time, Mumbai-Newark flights will increase from three weekly services to seven per week. However, Delhi-Newark and Mumbai-New York (JFK) services will be temporarily suspended, while Delhi-New York (JFK) will continue operating daily.

In Europe, the airline will halve its Delhi-Paris frequency from 14 weekly flights to seven. Services from Delhi to Copenhagen, Vienna, Zurich and Rome will each be reduced from four weekly flights to three, while Delhi-Milan flights will decline from five weekly services to four.

Asia-Pacific network also impacted

Air India’s Asia-Pacific operations will also witness notable changes over the coming months.

Flights between Delhi and Melbourne, as well as Delhi and Sydney, will be reduced from seven weekly services to four.

In Asia, the airline will temporarily suspend the Delhi-Shanghai and Chennai-Singapore routes through August. Services between Delhi and Singapore will be cut from 24 weekly flights to 14, while Mumbai-Singapore frequencies will reduce from 14 to seven weekly services.

The airline is also scaling back services to Bangkok, Kuala Lumpur, Ho Chi Minh City, Hanoi, Kathmandu, Dhaka and Colombo. Meanwhile, Mumbai-Dhaka and Delhi-Malé services will remain temporarily suspended through August.

Industry analysts say airlines globally continue to face operational pressures linked to volatile fuel prices, aircraft supply constraints and airspace disruptions caused by geopolitical tensions.

Air India maintained that the current changes are temporary and intended to strengthen schedule reliability while safeguarding passenger convenience during a difficult operating period.

UAE denies reports of Israeli officials visiting country

Officials stressed that relations are conducted through officially declared channels and not through “non-transparent or unofficial arrangements”

Gulf Business
Gulf Business

14 May, 2026

UAE denies reports of Israeli officials visiting country

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The UAE has firmly denied reports alleging that Israeli Prime Minister Benjamin Netanyahu visited the country or that an Israeli military delegation was received in the UAE.

In an official statement, the UAE said its ties with Israel remain “public and transparent” under the framework of the Abraham Accords, according to a WAM report.

Officials stressed that relations are conducted through officially declared channels and not through “non-transparent or unofficial arrangements.”

Call for media accuracy

The UAE added that any claims regarding undisclosed meetings or unannounced visits are “entirely unfounded” unless formally confirmed by relevant authorities.

The statement also urged media organisations to maintain professionalism and accuracy while avoiding the circulation of unverified information or “misleading political narratives.”

Agthia’s Salmeen Alameri on Q1 2026, food security and what comes next

The Abu Dhabi-listed group’s Q1 net profit jumped 12.5 per cent to Dhs96.9m. Salmeen Alameri tells us how diversification, digital and disciplined execution did the work

Neesha Salian
Neesha Salian

14 May, 2026

Agthia’s Salmeen Alameri on Q1 2026, food security and what comes next
Image: Supplied

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Agthia's Q1 2026 saw net profit rise 12.5% to Dhs96.9m amid challenging conditions. Revenue increased 3.3%, driven by water, food, and agri-business sectors. E-commerce grew significantly, highlighting the company's digital shift. Agthia prioritises food security in the UAE and aims to strengthen regional capabilities and drive efficiency for future growth.

Agthia entered 2026 with the kind of quarter that quietly settles arguments. Net profit at the Abu Dhabi-listed food and beverage group rose 12.5 per cent year-on-year to Dhs96.9m, revenue climbed 3.3 per cent to Dhs1.3bn, and EBITDA expanded 4.1 per cent to Dhs193.3m — all delivered against a regional backdrop of shipping disruption, route volatility and rising input costs that has tested operators across the Gulf.

Beneath the headline figures, the story is one of portfolio breadth doing its job. The water and food division delivered 14.6 per cent revenue growth, agri-business expanded 13 per cent, and Abu Auf’s 27.3 per cent topline jump within Snacking pointed to a turnaround taking shape. E-commerce, now 7.2 per cent of group underlying sales, grew 22.5 per cent — a quiet but telling indicator of how a traditional staples business is repositioning for a faster, more digital consumer.

Salmeen Alameri, managing director and CEO of Agthia, speaks to Gulf Business about what drove the quarter, how the group is managing through a more complex operating environment, and where he sees the strongest opportunities for the rest of the year.

How does Agthia view its role in supporting food security in the UAE, particularly through its scale, supply chain capabilities, and participation in food security-related programmes?

Agthia is a diversified group operating across four core business units: Agri-Business, Water & Food, Protein & Frozen, and Snacking. Each of these categories plays an important role in the broader food security ecosystem — from hydration and flour to animal feed, protein, dates, everyday food products and consumer staples.

For local champions like Agthia, the role is not only commercial. It is structural. Our responsibility is to build resilience in a way that is also economically sustainable. We do this by scaling local production capacity in essential categories, localising processing and storage where possible, and maintaining the operational readiness required to respond during periods of disruption.

More than half of our business is in the UAE, where we hold leading positions in key essential categories, including the country’s number one brands in water, flour and animal feed. Across the group, we operate 20 manufacturing facilities and employ over 12,000 people across the region, giving us the scale, infrastructure and operational depth to support reliable supply.

Agthia delivered a strong Q1 2026 performance. What were the primary drivers behind this, and how do you view the quality of these earnings?

Our results this quarter were shaped by strong execution in core segments, continued progress across transformation projects, and the group’s ability to respond quickly to a more complex operating environment.

Group net revenue rose 3.3 per cent year-on-year to Dhs1.3bn, EBITDA grew 4.1 per cent to Dhs193.3m, while net profit increased 12.5 per cent to Dhs96.9m — supported by disciplined execution, stronger margin delivery, and improving operating performance across key businesses.

Water and food remained a key growth engine, delivering 14.6 per cent revenue growth, supported by strong momentum in UAE water. Protein and frozen grew 4.1 per cent, driven by the market leadership of Nabil in Jordan and Atyab in Egypt. Agri-business delivered 13 per cent revenue growth, reinforcing its strategic role within Agthia’s diversified portfolio. In snacking, the portfolio reset continues to progress, with Abu Auf delivering 27.3 per cent topline growth and Al Foah demonstrating profitability recovery, reflecting the impact of focused actions to strengthen the category’s performance.

Our digital momentum also strengthened, with our e-commerce hub growing 22.5 per cent and now representing 7.2 per cent of group underlying sales, reflecting our ability to reach consumers through faster, more convenient digital routes to market.

Agthia’s performance reflects the strength of the group’s fundamentals, the relevance of its role in supporting the broader food security ecosystem, and the focus with which it continues to execute against its strategic priorities — creating a more resilient and profitable earnings profile.

Water and food remained a key growth driver in Q1. What factors supported the performance of this segment?

Water and food remained a key engine of growth in Q1, delivering 14.6 per cent revenue growth, supported by the continued strength of Agthia’s core brands, disciplined commercial execution, and sustained demand across essential categories. The performance was led by Al Ain Water, the UAE’s number one water brand, alongside continued momentum in our broader food portfolio, including everyday staples that remain closely linked to household consumption, hospitality, and food security.

The segment also benefited from Agthia’s ability to combine strong legacy brands with innovation and channel expansion. The launch of Al Ain Alkaline Water and the expansion of our frozen range strengthened our market footprint and responded to evolving consumer preferences. Overall, the segment’s performance reflects the strength of our category leadership, our operational scale, and our ability to keep innovating while continuing to serve essential consumer needs across the UAE and the wider region.

How did Agthia maintain operational continuity during the quarter, particularly in a more complex operating environment?

Agthia is built on a foundation of resilience, with the safety of our people and the stability of our operations remaining our first priorities. In response to the current situation, we are managing the impact through a well-prepared supply chain, supported by strategic reserves of key raw materials within geographies or operation bases. These buffers allow us to maintain production continuity and reduce the risk of disruption, even amid some disruptions in shipping routes and regional logistics.

At the same time, our diversified manufacturing footprint across the UAE, Saudi Arabia, Egypt, Kuwait and Jordan enables us to serve key markets more locally and reduce dependency on cross-border movement during periods of volatility. We are also able to adjust production levels where needed to manage inventory efficiently. Supported by a strong financial position, healthy liquidity, and a clear long-term strategy, we remain confident in our ability to navigate cost pressures while continuing to deliver against our ambitions and our commitment to the region.

What role does Agthia’s diversified portfolio play in strengthening the Group’s resilience and supporting long-term growth?

Agthia’s diversified portfolio is one of the strongest foundations of the group’s resilience. With leading brands across water and food, protein and frozen, snacking and agri-business, the group is not dependent on a single category, market, or consumption cycle. This allows us to balance performance across the business, manage shifts in demand more effectively, and continue serving consumers and customers even during periods of market volatility or supply chain pressure.

This diversification also supports long-term growth by giving Agthia multiple platforms to scale. Our portfolio includes everyday essentials, high-growth consumer categories, regional power brands, and businesses directly linked to food security and national supply. Together, they create a stronger, more agile operating model — allowing us to expand across markets, invest in innovation, strengthen category leadership, and deliver sustainable value to our stakeholders.

What are Agthia’s key priorities for the remainder of 2026, and where do you see the strongest opportunities for growth?

For the remainder of 2026, our priority is focused execution across the key platforms that will support Agthia’s next phase of growth — including strengthening our regional manufacturing and distribution capabilities, and driving greater efficiency across our operating model.

At the same time, we are advancing our digital transformation and shared-services roadmap to improve agility, visibility and speed across the Group, from supply chain and procurement to commercial planning and customer engagement.

We also see strong growth opportunities through our innovation pipeline, particularly in products that respond to evolving consumer preferences around health, convenience, hydration, functional benefits and snacking. Our focus is to build on the strength of our leading brands while introducing relevant new propositions across our core categories. While we are not providing formal guidance given current market variables, we remain confident in the fundamentals of the business.

Agthia has a diversified portfolio and strong regional platforms — our priority is to keep executing with discipline, resilience and a long-term view to create sustainable value for all stakeholders.

The end of the password? GCC cybersecurity leaders sound the alarm on identity’s new frontline

From AI-generated phishing to runaway machine identities, six regional security leaders share why the credential is now the single most exploited attack surface — and what organisations should do about it

Neesha Salian
Neesha Salian

13 May, 2026

The end of the password? GCC cybersecurity leaders sound the alarm on identity’s new frontline
Images: Supplied

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Cybersecurity leaders in the GCC are shifting focus from passwords to broader identity security, citing credential theft as a primary attack vector, now a boardroom-level business risk. The password's demise is imminent, with phishing-resistant MFA and biometrics gaining traction. AI's dual role necessitates adaptive identification, addressing the explosion of non-human identities and over-privileged access.

When World Password Day was first marked over a decade ago, the prescription was simple: longer passwords, more symbols, fewer birthdays. As the digital community observed the day on May 7, that prescription has aged badly.

Across the GCC, cybersecurity leaders are arguing that the password itself is the problem — and that organisations still treating identity as a user-education issue are protecting the wrong perimeter entirely.

“Attackers are not breaking in anymore. They are logging in,” says Meriam ElOuazzani, vice president for the Middle East, Turkey and Africa at Censys . “Last year, 82 per cent of intrusions involved no malware at all. Credentials were the door, and the door was already unlocked.”

That reframing — from intrusion to authenticated access — sits at the heart of how identity security is being rebuilt across the region. The stakes have moved up the corporate ladder accordingly.

From IT concern to boardroom priority

Across every spokesperson interviewed for this piece, the same theme recurs: identity is no longer an IT department issue. It is a business risk now tracked at board level.

“Identity security is now a core business priority across the Middle East, particularly in sectors such as oil and gas, utilities, and manufacturing,” says Mike Hoffman, field CTO for oil and gas at Dragos.

“Many cyberattacks begin with credential theft, phishing, or password reuse, often allowing attackers to move from IT into OT environments. Because cyber incidents can disrupt operations, impact safety, and cause financial loss, identity security is no longer just an IT issue — it is a business risk that requires executive attention.”

Ezzeldin Hussein, regional senior director, solution engineering for META at SentinelOne, agrees the lens has changed. “Identity and password security have evolved to become a board-level business priority as identity is now the primary attack surface. With cloud adoption, remote work, and expanding digital services, a compromised credential can directly have an effect on revenue, processes, and reputation.”

For Ranjith Kaippada, managing director at Cloud Box Technologies, the case is now about reputation as much as resilience. “Trust has taken a front seat. Even a single credential breach can damage years of reputation that a brand has built. In the UAE, most breaches originate from compromised credentials rather than sophisticated exploits.”

ElOuazzani identifies a structural mismatch behind the urgency. “Cloud acceleration has outpaced identity governance. Organisations expanded fast, often across multiple cloud environments, and the access controls did not keep pace. The exposure is real, and in many cases, it is already inside the environment.”

The passwordless pivot

If there is one consensus this World Password Day, it is that the password’s long tenure is finally drawing to a close. The successor technologies — phishing-resistant multi-factor authentication, FIDO2, biometric passkeys — have matured, and adoption is accelerating.

“Every organisation has suffered from a password breach or phishing attack, and as emerging identity technologies like passkeys and FIDO2 phishing-resistant authentication are now more mature there is a growing movement toward modernisation,” says Chester Wisniewski, director and global field CISO at Sophos. “Traditional MFA methods like time-based codes were often resisted by business leaders as cumbersome, but biometric passkeys are simple to use and gaining momentum.”

His recommendation is the bluntest of the group. “Stop using passwords. They are simply secrets. We are bad at keeping secrets and we are even worse at storing them. Adopt passwordless authentication for both convenience and security, and someday World Password Day can be a thing of the past.”

Jay Reddy, head of growth at ManageEngine, argues that even MFA — once considered the gold standard — is no longer a blanket answer. “MFA is no longer a blanket solution if it can be phished or bypassed. Replacing passwords and vulnerable factors like SMS or email OTPs with phishing-resistant methods such as FIDO2 and passkeys is becoming critical.”

Hussein points to regional infrastructure already supporting the shift. “Businesses are beginning to use identity-first security approaches, such as national digital identity frameworks like UAE PASS, robust verifying methods like FIDO2, and zero-trust principles.”

AI: weapon and shield

Underpinning the urgency is the rapid weaponisation of generative AI. Threat actors are using it to generate convincing phishing campaigns, deepfake personas, and automated credential theft at industrial scale.

“AI is making identity security more important than ever,” says Hoffman. “Threat actors are increasingly leveraging AI-generated personas, fake LinkedIn profiles, and sophisticated social engineering techniques to gain initial access into IT and OT environments. With the rise of generative AI, these tactics are becoming increasingly scalable and convincing.”

Hussein describes a dual-use dynamic. “AI will play two roles — defenders will use it to correlate endpoint, identity, and cloud signals in real time, while attackers will use it to automate phishing, deepfakes, and credential theft.”

Reddy adds the labour-market angle. “AI cuts both ways. It has made it easier for cybercrime to scale, while also increasing reliance on AI within security platforms to keep pace — especially with the documented cybersecurity skills shortage across the GCC.”

For Kaippada, the future lies in adaptive systems that mirror the sophistication of the attackers. “Adaptive identification, which uses behavioural biometrics and contextual cues to evaluate risk in real time, is the way of the future. AI-to-AI authentication — in which machines are used to check other machines — is one change that goes unnoticed.”

The machine identity explosion

Perhaps the most under-discussed shift is the explosion of non-human identities. Every API key, service account, automated workflow, and now AI agent represents a credential — and most organisations have no idea how many are active in their environments.

“Service accounts and application automation have created a proliferation of API keys, often with over-privileged access to company data,” Wisniewski warns. “Modern attackers are targeting these non-human identities and causing massive data breaches. This problem is only likely to get worse with the rapid adoption of agentic AI.”

ElOuazzani sees the same blind spot in client environments. “Most security leaders I speak with cannot tell me how many autonomous agents are active in their environment, let alone what data those agents are touching. That is not a tool problem. That is a structural one.”

Reddy frames it as a question of scale. “As automation scales, agentic AI will increasingly execute tasks independently, expanding the identity surface beyond what traditional governance models were designed to handle.”

What to do to protect yourself

The advice across the group converges on a handful of practical actions.

For Hoffman, it begins with how credentials are constructed in the first place. “Organisations should replace complex passwords with long, memorable passphrases combined with multi-factor authentication. Passphrases are easier for users to remember and harder for attackers to crack.”

For Hussein, it begins with a mindset shift. “Assume that passwords alone are already compromised and act accordingly. Companies should give importance to phishing-resistant verification, use least privilege access, and adopt continuous identity monitoring.”

For ElOuazzani, awareness campaigns are not the answer. “Stop treating this like a user education problem. Every World Password Day, organisations push awareness campaigns, circulate tip sheets, remind employees to use strong passwords. And every year, credentials remain one of the most reliable entry points for attackers. Audit what your organisation’s external infrastructure exposes right now, today, before you send a single internal memo.”

For Reddy, the priority is unifying fragmented identity stacks. “When identities are spread across silos, policy enforcement becomes inconsistent by default. A single, authoritative view of identity enables risk-based access decisions — where access is granted based on context, behaviour, and real-time risk rather than static roles.”

And for Kaippada, the answer is structural. “Stop treating passwords as a primary defence and start treating them as a liability. It is not about stronger passwords — it is about reducing dependence on them altogether to significantly shrink your organisation‘s total attack surface.”

Wisniewski offers the most aspirational close — a future in which the annual ritual itself is obsolete. “Someday World Password Day can be a thing of the past.”

That day is not here yet. But across the GCC, the cybersecurity industry is working — visibly, urgently — to bring it closer.

‘Consumers want instant value’: Dragonpass’ Andrew Chinn on the GCC’s loyalty shake-up

The CMO tells us what the data reveals, where traditional loyalty models are failing, and how brands need to adapt to remain relevant in one of the world’s most digitally engaged consumer markets.

Neesha Salian
Neesha Salian

13 May, 2026

‘Consumers want instant value’: Dragonpass’ Andrew Chinn on the GCC’s loyalty shake-up
Image: Supplied

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Article Summary
The Dragonpass Loyalty Index reveals that GCC consumers, while showing high brand loyalty (88.4%), are readily switching for better perks (82.6%). This shift, driven by younger consumers and digital adoption, necessitates a move from points-based programmes to instant, lifestyle-integrated rewards.

More than four in five GCC consumers say they are willing to switch brands for better perks, according to the recently published Dragonpass Loyalty Index, in a finding that points to a fundamental redrawing of how loyalty works across the region.

While 88.4 per cent identify as “very” or “somewhat” loyal to brands, 82.6 per cent are ready to defect for a better offer — a paradox that suggests the region’s loyalty market, projected to reach $5.6bn by 2030, is being rewritten in real time.

The shift is being driven by younger consumers, evolving digital habits, and a move away from points-based programmes towards instant, lifestyle-integrated rewards. Andrew Chinn, chief marketing officer, Dragonpass International speaks to Gulf Business about what the data reveals, where traditional loyalty models are failing, and how brands need to adapt to remain relevant in one of the world’s most digitally engaged consumer markets.
Dragonpass, which is among the world’s leading providers of digital airport ecosystem platforms, has over 2.7 million customers in the region.
How are consumer loyalty behaviours in the GCC evolving beyond points and travel into lifestyle-driven engagement?
GCC consumers are fundamentally redefining what loyalty means. Our index shows the top response of 46.6 per cent of people defining loyalty as “getting the best value or service,” whilst only 23.5 per cent view it as “consistently choosing the same brand.”
This shift is most pronounced amongst younger consumers. Only 54 per cent of Gen Z show interest in traditional points-based programmes, compared to 69 per cent of millennials. Instead, they are seeking instant, lifestyle-integrated rewards. Forty-five per cent of Gen Z express “extreme excitement” for VIP access to concerts, sporting events and theme parks, whilst 53 per cent want to be first to test new products.
The Middle East loyalty market, projected to reach $5.6bn by 2030, is moving towards embedded ecosystems. Programmes like stc pay in Saudi Arabia now integrate rewards across bill payments, merchant offers and daily transactions, whilst ADNOC Distribution links rewards directly with digital wallets.
Rather than collecting points for future discounts, consumers want immediate value they can use today, whether that is e-wallet credits, exclusive experiences at Riyadh Season, or early access to new products. Loyalty is evolving from a separate programme you join to an integrated lifestyle feature you simply use.
In what ways do GCC consumers differ from their global counterparts when it comes to loyalty, and where are the similarities?
GCC consumers show notably higher engagement than mature Western markets. The Dragonpass Index reveals 88.4 per cent identify as “very” or “somewhat” loyal to brands, significantly above global averages, yet 82.6 per cent are willing to switch for better perks. This reflects active comparison rather than disloyalty.
The region is exceptionally digital-first. UAE millennials spend 6.5 hours online daily, Saudi Arabia has 97 per cent smartphone penetration, and consumers expect loyalty embedded within a single platform, not standalone programmes.
GCC consumers also favour coalition programmes. Integrated ecosystems like Majid Al Futtaim’s SHARE programme reflect a preference for consolidated value across lifestyle categories.
Culturally, loyalty extends into unique categories, with around 20 per cent of travel linked to pilgrimage, requiring brands to consider cultural context alongside commercial value.
Like global markets, GCC consumers are shifting from transactional rewards to experiential engagement. The desire for personalisation, instant value and authenticity is universal. Globally, 60 per cent of brands now prioritise Customer Lifetime Value over short-term transactions, a trend equally strong in the GCC.
Sustainability is also emerging as a loyalty factor in both markets, though it is more mature in Europe than in the Middle East.
Why are traditional loyalty models struggling, particularly with younger audiences in the region?
Traditional programmes fail younger GCC consumers on five fronts:
Deferred gratification mismatch: Gen Z expects instant value. Accumulating points over months for a future reward conflicts with a generation accustomed to real-time digital experiences. Research shows 64 per cent of shoppers now ignore brand names entirely, driven by “Trend Loyalty” — viral, emotion-driven purchasing that moves faster than traditional programmes can respond.
Transactional over relational: The Dragonpass Index shows only 12.2 per cent of GCC consumers view loyalty as “habit or convenience,” which drops to just 9.9 per cent amongst 18-24 year-olds. Young consumers actively evaluate and switch, seeking emotional connection and belonging, not just discounts.
Lack of personalisation: Generic tier structures ignore that 16.5 per cent of young GCC consumers are “recognition-oriented” (wanting VIP treatment), whilst others prioritise flexibility or experiences. One-size-fits-all programmes alienate diverse preference groups.
Digital experience deficit: With 97 per cent smartphone penetration in Saudi Arabia, young consumers expect seamless mobile experiences. Clunky apps, difficult redemption processes and lack of gamification drive disengagement.
Values misalignment: Gen Z prioritises authenticity, sustainability and social impact. Traditional programmes offering plastic cards and wasteful catalogues feel disconnected from their values, whilst providing no transparency on data usage or brand purpose.
The data is stark: younger GCC consumers (18-24) are 10.8 per cent less likely than older groups to define loyalty as consistent brand choice, whilst being 5.6 per cent more likely to prioritise tangible, immediate rewards.
How should brands redesign their loyalty strategies to remain relevant in an increasingly transactional and value-led market?
Brands must pivot to four strategic pillars:
Instant and flexible value: Rather than forcing customers to accumulate thousands of points for a benefit, companies should design embedded instant-access benefits into one easy-to-use platform. These instantly accessible perks act as immediate value propositions, transforming abstract points into tangible experiences customers can access whenever they please.
Experience-led engagement: Move beyond discounts to enable access and experiences. Partner with broad travel and cultural institutions to offer VIP concert access, private museum tours, chef’s tables, airport fast track, lounge access and exclusive product previews.
The index shows 45-53 per cent of young consumers express extreme excitement for these opportunities, far exceeding interest in traditional rewards.
AI-powered personalisation: Segment beyond demographics into behaviour-based micro-segments. Use predictive analytics to deliver next-best-action recommendations and personalised perks. Establishing balance is critical. We find that 39.6 per cent of consumers are more likely to join AI-driven programmes, but 49.4 per cent remain undecided due to the lack of transparency needed to build trust.
Coalition and ecosystem integration: Build cross-brand partnerships enabling redemption across complementary categories — airline plus hotel plus dining plus entertainment. Establish loyalty within platforms consumers use daily rather than requiring separate app downloads.
In a constantly evolving and dynamic environment, speed matters. Brands adapting to 2025-26 trends early will be best positioned for long-term retention and growth.
What insights from the GCC Loyalty Index reveal opportunities for brands to deepen meaningful engagement with their customers?
The index reveals seven high-impact opportunities:
The Switcher market (82.6 per cent opportunity): With over four in five GCC consumers willing to switch for better perks, and 36.9 per cent “very likely” to do so, the market is primed for aggressive acquisition. Launch superior instant value propositions, immediate status matching, and exclusive experience access to capture competitors’ members.
Recognition as differentiator (16.5 per cent of Gen Z): Young consumers identifying as “recognition-oriented” want VIP treatment and personalised acknowledgement. Simple tactics like name-based greetings, birthday celebrations, “member since” status displays, and no-wait hotlines can create disproportionate emotional connection.
Trust as ultimate currency (5 per cent): In an era of switching behaviour, trust provides the lasting competitive advantage. Transparent point valuations, clear data usage policies, and “we will make it right” guarantees build the foundation for enduring loyalty.
The experience gap: With 45 per cent of Gen Z excited for VIP cultural and entertainment access, yet most programmes remaining discount-focused, there is massive untapped white space. Strategic partnerships with key players in the region can fill this gap without requiring asset ownership.
The unengaged segment (10.2 per cent):Those claiming no brand loyalty aren’t lost causes — they are unconvinced prospects. Target them with value-first messaging, frictionless one-click enrolment, immediate welcome rewards, and no-commitment trial periods.
Travel as catalyst (66.8 per cent travelled recently): Travel remains high-engagement, but purpose matters. Tailor strategies by segment: premium lounge access for holidaymakers (59.3 per cent), family tier benefits for those visiting relatives (56.5 per cent), time-saving services for business travellers (34.7 per cent), and respectful facilitation for pilgrimage journeys (20.2 per cent).
Coalition over competition: With consumers belonging to three-six programmes on average, the future favours ecosystems over standalone schemes. Build around daily life verticals (grocery, fuel, pharmacy), lifestyle clusters (dining, entertainment, wellness), or financial ecosystems (banking, payments, investments).
The overarching insight is that GCC consumers aren’t disloyal — they’re discerning. They will commit deeply to programmes delivering instant value, personalised experiences, and authentic relationships. The $5.6bn market by 2030 rewards brands that act decisively now.
What do international brands often get wrong when entering the GCC market?
A common mistake is assuming Western loyalty models can be replicated without adaptation. The GCC is far more digitally connected and value-sensitive than many brands expect.
More than 82 per cent of consumers say perks influence engagement, meaning points-only systems are insufficient.
Another key error is treating loyalty as standalone rather than embedding it into broader lifestyle ecosystems covering travel, retail, dining and payments.
Successful brands prioritise agility, daily value and seamless digital integration rather than relying on brand heritage alone.
What are your thoughts on the current situation and how has it affected travel? How do you think this would change consumer behaviour moving forward?
Recent regional tensions created short-term disruption in travel through airspace closures, cancellations and schedule adjustments, primarily for safety reasons. However, the GCC travel sector has shown strong resilience, particularly in the UAE, with operations stabilising quickly.
Recovery is already visible. Usage rebounded 47 per cent week-on-week when airspace partially reopened in mid-March, with further sustained growth of just under 10 per cent week-on-week. Middle East lounge usage is expected to return to pre-conflict levels by Q3 2026.
Consumer behaviour is not fundamentally changing, but accelerating existing trends. Travellers are becoming more value-conscious, prioritising flexibility, reassurance and seamless digital experiences.
This reinforces the importance of trusted loyalty ecosystems. Brands offering transparency, convenience and integrated support are best positioned to capture returning demand as confidence builds.

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