Omnichannel Personalization Trends in GCC

Omnichannel personalization is transforming how businesses in the GCC engage with their digitally savvy customers. This approach ensures a consistent, tailored experience across online and offline channels, leveraging AI and real-time data to address the region's unique consumer expectations.

Key Insights:

• High Consumer Expectations: GCC consumers demand personalized experiences 30% more than the global average.
• AI Integration: AI powers unified customer profiles, real-time recommendations, and multilingual chatbots, enabling scalable personalization.
• Regional Digital Landscape: The UAE ranks 12th globally in digital competitiveness, with 99% of its population active online.
• Cultural Diversity: Businesses must cater to diverse preferences, languages, and shopping habits, especially with expatriates making up 85% of the UAE’s population.
• Evolving Trends: AI-driven hyper-personalization, real-time data, and location-based targeting are reshaping customer engagement.
• Challenges: Data privacy laws, legacy systems, and skill shortages are hurdles for businesses implementing personalization strategies.

Quick Overview:

• Why It Matters: Omnichannel personalization is essential for meeting GCC's high consumer expectations and driving business growth.
• How It Works: AI integrates data from multiple touchpoints to deliver consistent, real-time, and culturally aware customer experiences.
• Future Focus: Businesses must prioritize AI adoption, data privacy compliance, and tailored strategies to succeed in the GCC market.

This article explores the technologies, trends, and challenges shaping omnichannel personalization in the GCC, offering actionable insights for businesses to thrive in this dynamic region.

VMF 2021: Building a Personalized Omni-Channel Experience with a Customer-First Mindset

Top AI-Driven Personalisation Trends in the GCC

The GCC's digital transformation is being shaped by AI trends that are reshaping how businesses connect with their customers. This region, known for its technological advancements and diverse consumer base, is setting new standards in personalisation. Here's a closer look at the key trends driving this change.

Real-Time Data for Hyper-Personalisation

The shift from traditional personalisation to hyper-personalisation is a game-changer in GCC marketing. By using real-time behavioural data and predictive insights, businesses can create tailored experiences almost instantly.

The results speak for themselves. Emirates NBD saw a 300% boost in digital user engagement by using AI to analyse customer browsing patterns and spending habits in real time. This allows their bankers to offer tailored financial advice, such as investment opportunities or savings plans, even before customers reach out.

The telecommunications industry in the GCC is also reaping the rewards. AI tools in personalised marketing and customer value management deliver impressive returns, with telecom operators generating up to US$5.90 for every US$1.00 spent. For instance, in June 2025, a regional telecom operator introduced an AI-powered pricing tool that increased conversion rates by 15%. Another operator successfully reduced customer churn by 60% during a power outage by offering timely, personalised solutions.

"Consumers expect real-time and personalised engagement, yet most operators underperform on delivering this due to underutilised data sets, gaps in precision marketing capabilities and operating models that hinder collaboration. An AI-powered customer value management engine can transform telco data into a competitive advantage, delivering personalised experiences and real business impact."
– Mahmoud Makki, Partner, Strategy&

The numbers are compelling. Bain & Company estimates hyper-personalisation could contribute US$18 billion annually to GCC e-commerce by 2030. Globally, this market is projected to grow from US$21.2 billion in 2024 to US$67.9 billion by 2031.

Connecting All Customer Channels

Real-time data insights are just the beginning. Integrating customer channels ensures personalisation extends across every interaction. With 86% of shoppers in the GCC buying both online and in-store, seamless channel integration has become a priority for businesses.

Customer Data Platforms (CDPs) are playing a pivotal role here. By unifying CRM, social media, marketing automation, analytics, and POS data, CDPs create a comprehensive customer profile. This allows businesses to deliver consistent experiences, whether customers engage via WhatsApp, physical stores, or mobile apps.

The concept of phygital experiences - blending online and offline interactions - is especially relevant in the GCC. AI enables smart stores to offer in-store recommendations based on customers' online activity. Banks are leading the charge, with Qatar National Bank using AI to personalise wealth management strategies across digital and physical touchpoints. Similarly, the Bank of Bahrain and Kuwait leverages AI to analyse data from multiple channels, enabling highly tailored communication strategies.

The benefits are clear: 76% of consumers are more likely to buy from brands that personalise their experience, and companies excelling in personalisation see 40% higher revenue from these efforts compared to their competitors.

AI-Powered Pricing and Predictive Analytics

AI-driven predictive analytics is revolutionising how GCC businesses anticipate customer needs. By analysing vast datasets, AI helps companies forecast behaviour, run targeted campaigns, and adjust pricing dynamically.

For example, a luxury brand in Riyadh used AI bots to adjust pricing during Ramadan, leading to a 40% increase in conversion rates. This kind of seasonal and cultural responsiveness is invaluable in a region where shopping patterns often revolve around religious and cultural events.

In the financial sector, AI is boosting cross-sell and up-sell opportunities by 15–25% by recommending the right products at the right time. The Saudi National Bank uses AI for real-time fraud detection, instantly analysing transactions to prevent suspicious activity, which boosts customer trust.

E-commerce platforms are also seeing the benefits. Noon’s "AI Stylist" analyses social media activity, past purchases, and local trends - including modest wear preferences - to offer personalised recommendations. This initiative has increased repeat purchases by 30% and strengthened customer loyalty.

AI adoption is growing rapidly, with 58% of finance functions already using AI in 2024 and 71% of UAE financial institutions deploying or upgrading their AI capabilities in the past year.

Adapting to Local GCC Markets

Personalisation in the GCC goes beyond technology - it requires adapting to the region's linguistic and cultural diversity. Businesses must cater to various languages and preferences while delivering tailored experiences at scale.

Arabic Natural Language Processing (NLP) is at the forefront of this effort. With advanced text analytics engines achieving 85% accuracy in Arabic, businesses can now engage with customers in their preferred language and dialect. For instance, a Riyadh electronics retailer reduced customer service calls by 40% after introducing a bilingual chatbot that supports Arabic and English.

The UAE is also making strides in AI R&D. Researchers at MBZUAI developed the Falcon system, a robust Arabic-language model used to create health chatbots and symptom checkers for local populations.

AI systems are also aligning with regional events like Ramadan and Eid. A Dubai-based salon increased bookings by 25% through AI-driven WhatsApp campaigns offering tailored promotions during these occasions.

While AI efficiency is crucial, many consumers still value a balance between automation and human interaction. Noon exemplifies this by incorporating Arabic in its messaging and using phrases that resonate with local audiences. This hybrid approach ensures personalisation feels both relevant and culturally aligned.

Building Blocks of Omnichannel Personalisation

Creating effective omnichannel personalisation in the GCC involves seamlessly combining four key components. These elements work together to deliver consistent and relevant experiences across every customer interaction.

Creating Single Customer Profiles

At the heart of omnichannel personalisation lies the creation of unified customer profiles. These profiles integrate data from CRM systems, web analytics, POS, social media, and in-store interactions. Customer Data Platforms (CDPs) play a pivotal role here, ensuring real-time synchronisation across all touchpoints, so every interaction is informed by the latest customer data.

"A robust omnichannel infrastructure that centres on a unified customer profile is essential for achieving this goal. Each interaction point for customers, including abandoned shopping carts and in-store product scans, needs to contribute to one unified customer view. Data needs to be usable at every customer interaction point and delivered instantly." - Amit Ojha, OmniChannel Technology Leader and Advisor

In the GCC banking sector, 70% of employees face challenges with data integration. However, some institutions are making strides. For instance, Emirates NBD and Mashreq are leveraging AI, chatbots, and digital onboarding processes to create seamless customer journeys across mobile, web, and physical branches, with personalisation powered by predictive analytics.

For businesses in the GCC, achieving this level of integration requires investing in strong data governance and ensuring data consistency. Cloud infrastructure and blockchain technology are increasingly being used to maintain transparency and enable synchronised cross-channel experiences.

AI-Powered Product Recommendations

Once unified customer profiles are established, AI takes personalisation to the next level by delivering real-time, intelligent product recommendations. Using machine learning and AI, businesses can analyse browsing behaviour, purchase history, and contextual data to offer tailored suggestions.

Amazon is a prime example of this approach. In 2023, the company used real-time tracking of customer behaviour across its website and mobile app to deliver highly personalised product bundles based on detailed purchase histories.

The technology driving these recommendations includes natural language processing (NLP), predictive analytics, and tools that provide instant insights. For GCC retailers, this means ensuring product catalogues are structured in a way that AI systems can easily interpret, enabling accurate and timely recommendations.

"AI empowers retailers to make sense of fragmented data, adjust to real-time customer preferences, and align resources with demand more precisely." - Competenza

The benefits are clear. Businesses that excel in personalisation often see up to 40% higher revenue compared to competitors that lag behind. In GCC markets, where consumer preferences are diverse, such technologies are especially valuable.

Location and Context-Based Targeting

Using geographic and contextual data allows businesses to deliver marketing that feels timely and relevant. This includes factors like weather, time of day, proximity to stores, and even current events, all of which influence customer decisions.

DoorDash is a standout example. In 2023, the platform personalised restaurant recommendations by combining location data with individual preferences and past orders.

In the GCC, contextual targeting becomes even more impactful during key moments like Ramadan and Eid. These periods are crucial for retail, with sales across the Middle East and North Africa reaching USD 66 billion during Ramadan in 2023, rivaling Black Friday sales.

Financial institutions are also tapping into this strategy. For instance, TD Bank automatically sends travel insurance offers when a customer books a flight using their credit card, creating a natural cross-selling opportunity.

Advancements like edge computing and 5G enhance these efforts, enabling faster and more precise interactions. Apps from Dubai Mall and Mall of the Emirates offer features like movie timings, store details, and restaurant menus, making them excellent examples of location-based personalisation. This level of precision helps businesses build loyalty by aligning with consumer habits and preferences.

Custom Loyalty Programmes

Loyalty programmes are evolving from basic points systems to personalised rewards that reflect individual customer preferences. These programmes aim to foster deeper connections by offering benefits tailored to unique needs.

In the GCC, this means recognising local customs, shopping behaviours during religious holidays, and the varied preferences of both local and expatriate populations.

"Personalisation in MENA is about more than knowing your customer - it's about understanding their story, values, and aspirations." - ProCXellence Customer Insights Team

AI-powered sentiment analysis is a game-changer here, helping businesses decode emotions, trends, and pain points from customer feedback in multiple languages, including Arabic, English, and Urdu.

The results speak for themselves: personalised loyalty programmes can boost sales by up to 10%. In the GCC, where trust and relationship-building are highly valued, such programmes become essential for long-term customer retention.

Modern loyalty strategies also incorporate zero-party data, where customers willingly share their preferences. This not only ensures compliance with privacy regulations but also deepens trust. In the GCC, 43% of consumers are willing to pay more for better experiences, and 64% are open to sharing personal data for tailored services. This approach helps businesses create meaningful connections while respecting privacy.

sbb-itb-058f46d

Challenges and Success Factors for GCC Businesses

As we delve deeper into the topic of personalisation strategies, it’s essential to understand the hurdles and key elements that determine success for businesses in the GCC. The journey toward implementing omnichannel personalisation here is anything but straightforward. While the region offers immense potential for AI-powered customer experiences, businesses must skillfully navigate regulatory challenges, technical barriers, and the cultural diversity that defines the GCC.

Data Privacy and Legal Compliance

The GCC is witnessing rapid changes in data protection laws, with countries like the UAE, Saudi Arabia, Qatar, and Oman aligning their regulations with global standards such as GDPR. These evolving regulations create both opportunities and challenges for businesses looking to personalise customer experiences.

Regulatory Complexity and Penalties

New data protection laws require explicit consent, stringent data-sharing protocols, and data minimisation practices. Non-compliance can lead to hefty penalties and damage to a company’s reputation, making adherence to these laws a cornerstone of any personalisation strategy. However, AI’s ability to infer sensitive information introduces additional privacy risks, drawing further regulatory scrutiny.

Low Adoption of Privacy Programmes

Despite increasing regulatory demands, only 21% of organisations in the GCC have implemented robust data privacy programmes. Alarmingly, 40% of businesses still assign data privacy responsibilities to their information security departments, while just 27% have dedicated privacy teams.

"In the heart of the GCC, where digital skyscrapers rise as fast as physical ones, data has become the new currency of innovation." - Paramount

Building Customer Trust

Consumer trust remains fragile. In Kuwait, for example, data privacy concerns are widespread, even though many consumers appreciate the benefits of hyper-personalisation. While 82% of customers want AI to improve their experiences, 67% hesitate to share personal information unless they are assured of transparency and control.

Cultural norms, past data breaches, and the evolving legal environment all shape how consumers perceive and trust businesses. Only 27% of consumers in the region feel they understand how their personal data is used.

"For enterprises across the region, data privacy protection isn't just about compliance - it's about trust, transparency, and the very foundation of a successful digital society." - Paramount

Technology Integration and Growth

Beyond regulatory concerns, technical limitations also hinder the smooth implementation of omnichannel personalisation in the GCC. Legacy systems and a lack of skilled talent are among the most pressing challenges.

Data Fragmentation and Legacy Systems

Many GCC retailers still operate with outdated, siloed systems that isolate data across various functions like transactions, inventory, and loyalty programmes. These fragmented systems make it difficult for AI to deliver accurate insights for personalisation. In fact, over 70% of experts highlight data preparation and management as critical challenges.

The costs of adopting AI are also steep. Businesses need to overhaul infrastructure, migrate from outdated ERP systems, and train staff - all of which require significant investment. Many existing systems lack APIs or structured data repositories, making integration with modern AI solutions a complex task.

Critical Skill Shortages

The region faces a glaring shortage of professionals with expertise in data science, AI, and business intelligence. A staggering 93% of experts identify this skills gap as a major barrier to AI adoption in GCC retail.

Survey data underscores this issue: only 30% of respondents say their companies have a clear AI strategy, and the same percentage believe they have the right talent to support AI initiatives. Even fewer - just 35% - feel their organisations have the necessary technology infrastructure.

Leadership and Change Management

Leadership buy-in is another weak link. Nearly half of participants in recent discussions cited a lack of executive support as a major obstacle to AI adoption. Only 25% of respondents report having effective change management programmes for AI in place.

"Senior leadership does not have the awareness of how AI can be used in business operations, and what needs to be done to adopt it." - Interviewee from the financial-services sector

A McKinsey survey highlights the primary challenges for AI adoption: 37% of respondents pointed to organisational and talent issues, followed by data and technology (26%), scaling (21%), and strategy (15%).

Language and Local Preferences

Adding to these technical and organisational hurdles are the linguistic and cultural complexities of the GCC. The region’s multilingual and multicultural consumer base demands a tailored approach to personalisation.

Multilingual and Cultural Complexity

AI tools like chatbots and recommendation engines must account for regional dialects, cultural practices, and seasonal behaviours such as Ramadan and Eid promotions. Personalisation systems must handle multiple languages - primarily Arabic and English - while respecting cultural sensitivities.

Consumer habits vary widely across the GCC. For instance, UAE shoppers often favour luxury items and electronics, resulting in larger online basket sizes (AED 367–404 or USD 100–110). In contrast, Qatar’s online shoppers are more conservative, with average basket sizes of AED 147–184 (USD 40–50). Kuwait’s higher purchasing power drives convenience-focused online shopping, while Bahrain’s smaller luxury market limits spending to AED 129–165 (USD 35–45).

Payment and Delivery Preferences

Payment methods also differ significantly. The UAE is transitioning toward a cashless economy, with only 23% of transactions expected to involve cash by 2025. Meanwhile, cash-on-delivery remains popular in Bahrain and Oman.

Delivery expectations add another layer of complexity. Saudi consumers demand fast, trackable deliveries, often expecting same- or next-day service, especially in urban areas. In Oman, however, trust and transparency in delivery timelines are more important than speed.

"The GCC retail sector is at a tipping point. AI is the key to delivering personalised, high-impact customer experiences - but it all begins with talent. We must invest in skills today to meet tomorrow's expectations." - Moza Al Futtaim, Chief AI Officer, Al-Futtaim

To thrive in this environment, businesses must adopt thoughtful, localised strategies that address these challenges while leveraging AI to meet the diverse needs of GCC consumers. Success hinges on a strong foundation in data privacy, technological readiness, and cultural understanding.

Wick's Approach to Omnichannel Personalisation in the GCC

Tackling omnichannel personalisation in the GCC requires a methodical and data-driven strategy. Wick's Four Pillar Framework offers a structured path for creating personalised experiences that align with GCC-specific regulations, cultural expectations, and technological requirements. This framework is designed to meet the growing demand for tailored, data-informed interactions while addressing the region's emphasis on transparency and control over personal data. With 82% of customers expressing interest in AI-enhanced experiences, yet many remaining cautious about sharing personal information without clear safeguards, Wick places trust and advanced technology at the heart of its approach. Each pillar of the framework works together to ensure cohesive and meaningful customer engagement.

Build & Fill

The first step in personalisation is setting up a digital presence that resonates with GCC audiences. This involves building the necessary infrastructure to collect, process, and utilise customer data effectively across all channels.

Website Development for GCC Markets

Wick's websites are designed with bilingual capabilities and cultural sensitivity in mind. The technical setup complies with regional regulations, such as Saudi Arabia's Personal Data Protection Law (PDPL) and the UAE's Federal Data Protection Law. By embedding privacy-first principles from the outset, businesses can gather zero-party data - data willingly shared by customers - while staying compliant with strict consent rules.

Content Creation and Social Media Management

Content strategies are tailored to reflect the diversity of GCC markets. Wick adapts messaging, visuals, and campaign timings to align with local preferences and seasonal events like Ramadan and Eid. Social media management not only drives engagement but also helps build customer profiles, all while respecting local privacy norms.

Plan & Promote

Once a solid digital foundation is in place, the focus shifts to increasing visibility and engagement through targeted promotional strategies that reflect GCC-specific behaviours and preferences.

SEO Optimisation for Regional Search Patterns

Search habits in the GCC are deeply influenced by language, local terminology, and cultural context. Wick’s SEO strategies optimise for both Arabic and English search terms, recognising that customers often use different expressions for the same product or service. This approach also considers voice search and mobile-first indexing, ensuring quick loading times and capturing intent during key moments.

Paid Advertising and Influencer Marketing

Promotional efforts include personalised paid advertising campaigns that adapt messaging, visuals, and offers based on individual customer profiles. These campaigns adhere to regional advertising standards and cultural norms. Wick also ensures influencer marketing partnerships align with local values, using measurable data to assess engagement and conversions while contributing to the overall personalisation strategy.

With visibility enhanced, the next focus is on consolidating and securing customer data.

Capture & Store

This pillar focuses on unifying customer data from various systems and touchpoints to create detailed profiles that drive personalisation efforts.

Data Analytics and Customer Journey Mapping

Wick integrates data from different sources to create unified customer profiles, breaking down silos often found in GCC businesses. Advanced data integration systems connect older ERP setups with modern AI tools, mapping every interaction - from online browsing to in-store purchases. This ensures a clear understanding of customer behaviour while maintaining transparency and consent-driven practices.

Privacy-Compliant Data Management

Wick prioritises privacy by design, implementing robust consent mechanisms and clear data-use policies. Techniques like differential privacy and federated learning allow businesses to personalise experiences without exposing raw customer data. This approach addresses the delicate balance between personalisation and privacy that’s especially critical in the GCC market.

With data securely managed, the final step is delivering personalised interactions through automation.

Tailor & Automate

The last pillar focuses on using AI and marketing automation to create seamless, personalised experiences across all channels, while maintaining the human touch valued in GCC markets.

AI-Driven Personalisation Implementation

Wick employs explainable AI to build trust by making decision-making processes transparent. This reduces perceived bias and fosters long-term relationships in culturally diverse markets. The AI systems can detect customer emotions, adapt responses, and remember past interactions, ensuring consistent and culturally sensitive experiences across all touchpoints.

Marketing Automation for Omnichannel Experiences

Wick’s automation tools turn personalisation insights into action across every customer interaction. Whether customers are shopping online, visiting a store, or engaging on social media, the system ensures experiences reflect their preferences, purchase history, and cultural context. Examples include automated email campaigns tailored to Ramadan schedules, product recommendations suited to local climates, and dynamic pricing strategies that consider regional purchasing power. From Kuwait’s focus on convenience to Oman’s emphasis on trust, Wick’s approach bridges gaps in expertise, enabling businesses to achieve advanced personalisation without significant in-house AI investments. This aligns with current AI trends, highlighting its role in the GCC's omnichannel landscape.

Conclusion: Growing with Omnichannel Personalisation in the GCC

The GCC region is at a pivotal point when it comes to omnichannel personalisation. Businesses across the region are increasingly focused on delivering seamless, customised experiences across both digital and physical channels. This shift is driven by the intersection of advanced AI technologies, a rich cultural landscape, and evolving regulatory requirements, presenting both opportunities and challenges.

At the heart of effective personalisation strategies lies real-time data integration. Companies that successfully unify customer interactions - whether online or in-store - are seeing stronger engagement and deeper loyalty. However, achieving this requires a solid infrastructure capable of handling the region's diverse languages, currencies, and cultural preferences, all while adhering to stringent data protection laws. This unified approach not only improves customer engagement but also sets the stage for agile innovation in emerging markets. While data integration drives engagement, the regulatory environment defines how these strategies can be implemented.

Regulations play a critical role in shaping personalisation efforts. Laws like Saudi Arabia's Personal Data Protection Law (PDPL) and the UAE's Federal Data Protection Law emphasise transparency and require businesses to obtain explicit customer consent. Instead of stifling innovation, these regulations encourage brands to adopt privacy-first practices, fostering trust-based relationships with their customers. In a region where personal connections are key to business success, compliance with these laws becomes a competitive advantage, reinforcing customer confidence and loyalty.

Cultural awareness is another essential factor. By incorporating local customs and traditions into their strategies, businesses can enhance customer loyalty and improve conversion rates. Companies that align their AI-driven personalisation efforts with cultural nuances are seeing tangible benefits, including higher satisfaction among their customer base.

To navigate the complexities of omnichannel personalisation in the GCC, structured strategies are essential. Wick’s Four Pillar Framework offers a practical roadmap, guiding businesses through the process of building culturally aware digital systems, implementing AI-driven personalisation, and maintaining trust while respecting local values and regulations. This framework equips businesses in the GCC to grow sustainably, leveraging personalisation to thrive in a rapidly evolving market.

FAQs

What steps can businesses in the GCC take to address data privacy and outdated systems when adopting omnichannel personalization?

To address data privacy concerns, businesses in the GCC need to adopt strong compliance measures that align with local laws like the UAE Personal Data Protection Law. This involves implementing secure data storage solutions, using encryption methods, and maintaining clear and transparent privacy policies. These steps not only ensure legal compliance but also help build trust with customers.

For older systems, upgrading through modernisation efforts is essential. Companies can enhance their operations by integrating backend automation and tools for real-time data synchronisation. This approach improves communication between platforms, allowing for more effective data use and enabling personalised experiences across various channels.

How does cultural diversity in the GCC influence personalization strategies, and how can businesses adapt effectively?

The cultural diversity within the GCC is a key factor in shaping how businesses approach personalisation. With a population made up of local citizens, expatriates, and tourists from all over the world, companies need to create content and experiences that resonate with a wide range of cultural backgrounds. This means understanding and respecting the unique preferences, traditions, and values of each group.

To succeed, businesses should prioritise cultural sensitivity. This involves aligning communication with local customs and traditions while acknowledging and respecting the region's multicultural nature. Personalisation should feel sincere and inclusive, ensuring that messages connect meaningfully with all audiences. By taking this approach, businesses can strengthen relationships and build trust in the GCC's richly diverse market.

How does AI improve omnichannel personalization, and what advantages can businesses in the GCC achieve by adopting it?

AI transforms omnichannel personalisation by analysing customer data in real-time to create tailored experiences across various touchpoints. For businesses across the GCC, this translates into stronger customer engagement, higher conversion rates, and sharper marketing strategies.

Here's how it helps:

• Boosted revenue: Hyper-personalisation can drive sales growth by up to 35%.
• Lower costs: Customer acquisition expenses can be reduced by as much as 50%.
• Enhanced loyalty: AI enables seamless, relevant, and consistent interactions across channels, fostering long-term customer relationships.

By integrating AI-driven personalisation, businesses in the GCC can stay ahead of market demands, streamline operations, and deliver outstanding value to their customers.