The Gulf region’s luxury market is poised for a significant surge, driven by robust economic growth and a surge in consumer confidence, according to a new report by luxury goods retailer and distributor Chalhoub Group. The report highlights the Gulf’s luxury sector as a standout performer, outpacing global growth by a factor of two and reaching a value of $12. 5 billion in 2023.
This positive outlook is fueled by a combination of favorable macroeconomic factors and a flourishing tourism industry. The United Arab Emirates (UAE) and Saudi Arabia are leading the regional growth, with high-end fashion, luxury watches and jewelry, and prestige beauty products experiencing a surge in demand. Fashion reigns supreme within the Gulf Cooperation Council’s (GCC) luxury market, valued at a staggering $5.
2 billion, the report reveals. Following closely behind is the watch sector, valued at $5. 1 billion.
Notably, the high-end fashion segment alone witnessed a remarkable 10% growth in 2023, significantly surpassing the global average growth rate of 4%. This momentum continued into the first quarter of 2024, with a robust 7% increase compared to the same period last year. The Chalhoub Group report attributes this growth to a confluence of factors.
Strong economic reforms implemented across the Gulf are anticipated to further bolster the luxury market by enhancing consumer confidence. Rising disposable incomes and a growing appetite for luxury goods among the region’s affluent popul.