Dubai Career Diary

The Gulf Cooperation Council (GCC) luxury market has demonstrated remarkable growth, reaching a record-breaking $12.5bn in 2023, according to Chalhoub Group. With a growth rate double that of the global industry, the GCC’s luxury market is thriving, driven by strong demand for high-end fashion, luxury watches, and prestige beauty products.

GCC Luxury Market Growth

The GCC’s personal luxury market is expected to continue its impressive growth, fueled by strong macroeconomic fundamentals, a thriving tourism sector, and dynamic consumer behavior. The region’s residents are optimistic about the economy, with 53% expressing confidence in the economy’s state.

Fashion Remains the Largest Market Category

Fashion is the largest segment within the GCC luxury market, valued at $5.2bn, closely followed by watches at $5.1bn. The high-end fashion segment alone grew by 10% in 2023, far surpassing the global average growth rate of 4%. The ultra high-end and high-end segments represented 86% of the total luxury fashion market, increasing by 11% and 6% from the previous year, respectively.

UAE Emerges as the Top Market for Luxury Fashion

The UAE has emerged as the top market for high-end fashion, driven by its vibrant tourism sector, influx of high-net-worth individuals, and resilient local spending.

Prestige Beauty Market Witnesses Strong Growth

The GCC’s beauty category is experiencing strong growth, with a 15% year-on-year growth in 2023 and a 10% growth in Q1 2024. The UAE represents the top market in prestige beauty, driven by strong domestic spending and healthy tourism, followed closely by Saudi Arabia.

Consumer Behavior and Preferences

Consumers in the GCC prioritize personalized services and convenience when it comes to fashion purchases. Fragrances, facial moisturizers, and lip makeup are the most purchased beauty products among females in the GCC.

Positive Outlook on the Regional Economy

The positive outlook on the regional economy is reflected in consumers’ personal finances, with 93% claiming to do well financially. The majority of respondents in Saudi Arabia believe the economy is stronger, with 70% of affluent KSA consumers reporting that the economy has improved over the past three months.