The GCC’s luxury market continues to outpace global growth, achieving unprecedented milestones in 2023,according to Chalhoub Group.With the personal luxury market in the GCC growing at double the speed of the global industry and reaching a record USD 12.5 billion by the end of 2023, the industry’s significant growth highlights the region’s robust demand for high-end fashion, luxury watches and jewellery, andprestige beautycementing the GCC’s key role in the global luxury landscape.
“The region’s luxury market is expected to continueits impressive growth trajectory, driven by strong macroeconomic fundamentals, a thriving tourism sector, and dynamic consumer behaviour with 53% of GCC residents expressing optimism about the state of the economy.This ongoing growth and dynamism in underpinned by numerous new openings including those of “new luxury” brands such as Zimmermann in Mall of Emirates and Jacquemus in Dubai Mall, pop-ups inside and outside of malls, and events happening across the region.” In terms of market categories, Fashion remains the largest within the GCC luxury market, valued at USD 5.
2 billion, closely followed by watches at USD 5.1 billion. The high-end fashion segment alone grew by 10% in 2023, far surpassing the global average growth rate of 4%, and continues to experience strong growth +7% in Q1 2024.
Ultra high-end and high-end segments represented 86% of total luxury fashion market and increased by 11% and 6% from the previous year respec.