I see that this Optimization tab (in screenshot) is missing from my Sitecore Experience Editor Ribbon.
I checked and Xdb is enabled and working fine.
Can somebody suggest what can be the reason for this apart from Xdb?
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I assume you are logging with regular user which doesn't have "admin rights".
In this case, your user needs to inherit from
sitecore\Author or one of these roles
sitecore\Analytics Personalization and
Also make sure your user is not inheriting this role
sitecore\Sitecore Limited Page Editor - This is speeding up loading times of Experience Editor (EE) significantly but also limits / degrades the functionality of EE significantly
Check you have this item in Core database "/sitecore/content/Applications/WebEdit/Ribbons/WebEdit/Optimization". WebEdit children items are what is shown in Experience Editor ribbon. Also make sure you have all necessary ContentTesting configuration files enabled so that Optimization features will work properly. They are located in ContentTesting folder in App_Config\Include or in App_Config\Sitecore depending which version you are using.