GCC luxury market hits $16.9 billion amid booming growth
- As of 2024, the Gulf Cooperation Council has a luxury market valued at over $16.9 billion, with growth expected to continue.
- The United Arab Emirates holds nearly 50% of the luxury market, with Dubai being the primary hub for luxury shopping.
- The increasing wealth among consumers and changing spending habits indicate a robust future for the luxury sector.
As of 2024, the seven Gulf Cooperation Council (GCC) countries have a combined luxury market valued at over $16.9 billion, with growth projected at nearly 9% through 2033, potentially reaching $37 billion. The United Arab Emirates (UAE) dominates this market, holding nearly 50% market share, with Dubai being a key luxury shopping destination second only to London. Major luxury retail locations like Dubai Mall and the Mall of the Emirates showcase global luxury brands while providing unique attractions such as aquariums and ski resorts. Saudi Arabia is a significant player, accounting for approximately 40% of the region's luxury market. Prominent billionaires, particularly in Saudi Arabia and Lebanon, contribute to the luxury spending landscape. The country boasts 15 billionaires with a combined wealth of $55.8 billion, emphasizing the increasing purchasing power within the luxury sector. The Saudi Vision 2030 initiative aims to further boost local spending on luxury goods and services, diminishing the current trend where wealthy Saudis spend about 70% of their luxury expenditures abroad. In the context of shifting consumer behaviors, the rise of younger, tech-savvy women is reshaping the luxury market dynamics in the region. For instance, the high-end fashion segment surged to $5.2 billion in 2023, influenced by Lebanese consumers known for their refined tastes and commitment to luxury. Women play a crucial role in the shopping and gift-giving culture, increasingly driving luxury brand loyalty and encouraging local brands to adapt to evolving consumer preferences. Countries like Qatar, which represents about 10% of the region's luxury market, exhibit increased wealth due to high per capita income, along with promising economic growth projections. Meanwhile, Kuwait sets trends in regional luxury consumer behavior, often being the first to adopt new luxury fashions before they spread to other Middle Eastern markets, further underlining the region's significant role in the global luxury ecosystem.