Unprecedented Growth Ahead for Gulf Countries’ Luxury Products Market in 2023
The Gulf countries’ luxury products market is poised to experience unprecedented growth rates in 2023, surpassing global averages, according to a report by Chalhoub Group. The demand for high-end fashion, watches, jewelry, and luxury beauty products in the region continues to rise, with the personal luxury products market growing at twice the rate of the global sector. By 2023, this market is expected to reach $12.5 billion, solidifying the Gulf countries’ position as a major player in the global luxury market.
Yasmina Panda, Chief Strategy Officer and Senior Vice President of Fashion Joint Ventures at Chalhoub Group, highlighted several factors driving this growth, including strong macroeconomic fundamentals, a thriving tourism sector, evolving consumer preferences, and the optimism of 53% of GCC residents about their country’s economic situation. Luxury brands like Zimmermann and Jacquemus are expanding rapidly in the region by opening new stores in malls and increasing pop-up shops and events across the region.
The UAE stands out as a leading market across all luxury fashion segments due to its thriving tourism sector, influx of high-net-worth individuals investing in the region and flexible spending habits of local consumers. The growth of the luxury market in the Gulf shows no signs of slowing down, making it an attractive and lucrative market for luxury brands looking to expand their presence in the region.
In conclusion, studies conducted by Chalhoub Group suggest that the Gulf countries’ luxury products market will experience record growth rates surpassing global averages by 2023. Factors such as strong macroeconomic fundamentals
