In 2023, the luxury products market in Gulf countries is expected to experience record growth rates, surpassing global averages. The demand for high-end fashion, watches, jewelry, and luxury beauty products in the region continues to rise at a rapid pace, with the personal luxury products market growing at twice the rate of the global sector. By the end of 2023, this market is projected to reach $12.5 billion, solidifying 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, spoke about the factors driving this growth during a recent interview. She highlighted strong macroeconomic fundamentals, a thriving tourism sector, evolving consumer preferences, and the optimism of 53% of GCC residents about their country’s economic situation as key drivers. The retail sector in the region is also expanding rapidly, with luxury brands like Zimmermann and Jacquemus opening new stores in malls and an increase in pop-up shops across the region.
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 real estate and other sectors. Additionally, local consumers have flexible spending habits that make them attractive targets for luxury brands looking to expand their presence in the region.
Overall, the growth of the luxury market in Gulf countries shows no signs of slowing down anytime soon. It presents an attractive and lucrative opportunity for luxury brands looking to expand their presence beyond traditional markets into emerging markets like those found in Asia Pacific and Africa.