The luxury products market in the Gulf countries is set to experience unprecedented growth rates surpassing global averages in 2023, according to studies conducted by the Chalhoub Group. The demand for high-end fashion, watches, jewelry, and luxury beauty products continues to rise at an astounding rate in the region. By the end of 2023, this market is expected to reach $12.5 billion, cementing the Gulf countries’ position as a significant player in the global luxury market.
Yasmina Panda, Chief Strategy Officer and Senior Vice President of Fashion Joint Ventures at Chalhoub Group highlighted the key drivers of this growth, including strong macroeconomic fundamentals, a thriving tourism sector, evolving consumer preferences, and optimism among GCC residents about their country’s economic situation. In addition to these factors, the retail sector in the region is expanding rapidly with new stores opening for luxury brands such as Zimmermann and Jacquemus in malls across the region. There has also been an increase in pop-up shops and events across the area.
The UAE stands out as a leading market across all luxury fashion segments due to its thriving tourism industry and influx of high-net-worth individuals investing in the region. Furthermore, local consumers have flexible spending habits that make them attractive to luxury brands looking to expand their presence in this lucrative market. Despite signs of slowdowns in some sectors, overall growth trends show no signs of slowing down in this exciting market for luxury brands.
