A boom in the luxury products market in the GCC countries

The luxury products market in the Gulf countries will witness record growth rates exceeding global growth rates in 2023, according to the latest studies conducted by the Chalhoub Group. These remarkable growth rates highlight the significant demand the region is witnessing for high-end fashion, watches, jewelry, and luxury beauty products, especially in light of the growth of the personal luxury products market in the Gulf countries at a rate twice the growth at the level of the global sector and reaching $12.5 billion by the end of 2023, which is This cements the position of the Gulf countries as a major player in the global luxury market.

“The growth of the luxury market in the region is not going to slow down anytime soon, driven by solid macroeconomic fundamentals, a thriving tourism sector, ever-changing consumer preferences and 53% of GCC residents who are optimistic about their country’s economic situation,” said Yasmina Panda, Chief Strategy Officer and Senior Vice President of Fashion Joint Ventures at Chalhoub Group. “The continued expansion and dynamism of the retail sector in the region is being driven by the recent openings of luxury brands including Zimmermann at Mall of the Emirates and Jacquemus at The Dubai Mall, as well as the increasing number of pop-up stores in and outside malls and the increasing number of events being hosted across the region.”

The UAE has emerged as a leading market across all luxury fashion segments, including high-end, ultra-high-end, aspirational and affordable luxury, due to the country’s thriving tourism sector, the increasing number of high-net-worth individuals choosing to invest in the region, and flexible local spending rates.