The GCC’s luxury market continues to outperform global trends, reaching record highs in 2023, according to a new report by Chalhoub Group. The region’s luxury market, valued at $12.5bn by year-end 2023, grew at double the rate of the global industry, solidifying the GCC’s position as a key player.
Fashion remains the top luxury segment in the GCC, valued at $5.2bn, followed closely by watches at $5.1bn.
The high-end fashion segment grew by 10 per cent in 2023, significantly exceeding the global average growth rate of 4 per cent. This strong performance continued into Q1 2024, with growth of 7 per cent. The beauty sector also saw significant growth across the GCC, with a 15 per cent year-on-year increase in 2023 and 10 per cent growth in Q1 2024.
UAE leads the way in luxury spend The UAE emerged as the top market for prestige beauty, driven by domestic spending and a robust tourism sector. Makeup and skincare were the fastest-growing beauty categories, with skincare experiencing a rise of 30 per cent. The UAE retained its position as the top luxury market within the GCC across all segments, benefiting from a vibrant tourism industry, an influx of high-net-worth individuals, and resilient local spending.
Read: UAE consumer spending rises 13% in 2023, reveals retail report Jasmina Banda, chief strategy officer and SVP of Fashion JVs at Chalhoub Group , commented on the report’s findings: “The region’s luxury market is expected to maintain its impressive growth trajec.
