The Gulf countries’ luxury products market is projected to experience unprecedented growth rates, surpassing global averages in 2023, according to research by the Chalhoub Group. Factors contributing to this growth include robust macroeconomic fundamentals, a thriving tourism industry, evolving consumer preferences, and optimism among 53% of GCC residents about their country’s economic prospects.
Luxury fashion, watches, jewelry, and beauty products continue to be highly sought after in the region. Personal luxury products have grown at twice the rate of the global sector. By the end of 2023, this market is expected to reach $12.5 billion, further solidifying the Gulf countries’ position as a significant player in the global luxury market.
According to Yasmina Panda, Chief Strategy Officer and Senior Vice President of Fashion Joint Ventures at Chalhoub Group, several factors are driving this growth trend. These include strong economic fundamentals that support consumer spending on high-end goods; an expanding tourism industry that attracts visitors from around the world; evolving consumer preferences that demand quality and exclusivity; and optimism among GCC residents regarding their country’s economic future.
The retail sector in the Gulf is also expanding rapidly. Luxury brands like Zimmermann and Jacquemus are opening new stores in malls across the region. There has been an increase in pop-up shops as well as events taking place throughout the area. The UAE stands out as a leading market for luxury fashion across all segments due to its thriving tourism industry, influx of high-net-worth individuals investing in real estate development projects, and flexible spending habits among local consumers.
In conclusion, with its growing economy and expanding retail sector, the Gulf countries represent an attractive market opportunity for luxury brands looking to expand their presence in Asia Pacific region.
