GCC Personal Luxury Market Defies Global Slowdown, Chalhoub Group’s Jasmina Banda Says

The GCC’s personal luxury market is proving remarkably resilient and dynamic in 2024, defying broader global trends with impressive sales and sustained growth. In 2024, the region recorded 12.8 billion dollars in luxury retail sales, marking a 6% year-on-year rise. This momentum signals strong demand across a diverse mix of luxury categories, underpinned by a combination of domestic strength, strategic retail expansion, and growing digital sophistication. The Chalhoub Group’s GCC Personal Luxury 2024: Unstoppable report captures these dynamics, offering a comprehensive view of the market’s structure, consumer behavior, and the strategic moves shaping its near- and mid-term trajectory. This article distills the report’s core findings, explains the drivers behind GCC luxury resilience, and maps the opportunities and challenges confronting both established luxury players and newer entrants in the region.

Key Findings, Scope, and Data Architecture

The GCC Personal Luxury 2024 report builds its conclusions on a rigorous synthesis of data from Chalhoub Group, its partners, and estimates covering both offline and online markets across six GCC nations: the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman. The document consolidates insights across four primary luxury categories, providing a structured view of market breadth and depth. These categories encompass 77 high-end fashion brands—representing the apparel and accessory domain at the upper end of the price spectrum—along with more than 1,000 prestige beauty brands and retailers that span skincare, cosmetics, fragrances, and related categories. The report also reviews 30 luxury watch brands and 16 fine jewellery brands, offering a holistic perspective on complementary segments that collectively define the personal luxury landscape in the GCC.

Consumer insights underpinning the report are grounded in proprietary Chalhoub Group research studies conducted between 2023 and 2025 across a range of GCC markets. This dual approach—combining retailer-led data with consumer research—ensures that the analysis reflects both the supply-side realities of distribution networks and the demand-side signals from shoppers who frequent luxury channels. The scope is intentionally wide, capturing both the offline retail footprint and the expanding online channel, which together determine how luxury brands reach, engage, and convert GCC consumers.

A striking feature of the report is the demonstration that the GCC luxury market grew by more than 6% in 2024, effectively countering global declines observed in other regions. This resilience is notable not only in the overall growth rate but also in the composition of demand, which remains robust across fashion, beauty, watches, and jewellery. The data suggests that the GCC’s growth is not a narrow phenomenon confined to a single category but a broad-based upshift across multiple luxury segments. This multi-category strength provides brands with meaningful opportunities for portfolio diversification and experiential retail strategies that can exploit cross-category consumer interest.

Moreover, the report highlights that the market’s expansion is supported by data drawn from the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman, offering a regional lens that acknowledges the heterogeneity of consumer profiles and retail ecosystems within the GCC. The four-category framework—fashion, prestige beauty, watches, and jewellery—allows for a precise dissection of where demand is most concentrated, how growth is distributed among channels, and where the most compelling ROI opportunities lie for brands seeking to optimize store formats, merchandising, and integrated digital experiences. This analytical architecture is critical for brands and investors seeking to anchor their regional strategies in a clear, data-driven understanding of the GCC luxury landscape.

Within its analytical perimeter, the report emphasizes the primacy of fashion as the largest category in terms of share of spend, while prestige beauty emerges as the fastest-growing segment. The beauty sector’s momentum is driven by skincare, which records the strongest performance subcategory with growth well over 17% versus 2023, while fragrance remains a dominant contributor to the beauty mix, accounting for roughly half (about 49%) of total beauty sales. This category dynamic—fashion leading in spend share, skincare driving growth within beauty, and fragrance maintaining a steady share—illustrates a nuanced competitive landscape where consumer preferences are evolving but remain anchored in traditional luxury drivers such as brand prestige, product efficacy, and sensory appeal.

On consumer sentiment, the GCC market demonstrates a high degree of confidence and intent. A notable 97% of GCC consumers indicate that they plan to maintain or increase their luxury spending over the next three months, signaling a relatively buoyant macro sentiment that can sustain near-term demand. This confidence is reinforced by ongoing retail expansion across the region, which improves accessibility and visibility for luxury brands, thereby potentially accelerating both first-time purchases and repeat visits. The report also notes that GCC consumers are increasingly influenced by the omnichannel experience, with a growing expectation for seamless integration between physical stores and digital touchpoints.

In terms of online penetration, the GCC luxury market is still below the global average, with e-commerce contributing about 13% of total luxury sales in 2024. Yet this share is rising rapidly, with online luxury growth exceeding 13% in 2024—outpacing the global market trend, which experienced declines in several mature markets. The digital acceleration in the GCC is being fueled by several converging factors: strong domestic demand, the inflow of affluent international shoppers, widespread adoption of digital and omnichannel shopping behaviors, and the emergence of new subcategories within beauty, notably skincare and Asian beauty brands, that are compelling new reasons for online exploration and purchase.

In sum, the GCC’s 2024 performance is characterized by breadth and resilience across fashion, beauty, watches, and jewellery, underpinned by strong domestic demand and a favorable investment climate for luxury retail, coupled with rapid digital adoption and strategic physical expansion. The combined effect is a market that remains attractive to both established luxury brands and ambitious newcomers seeking to establish a meaningful footprint in one of the world’s most dynamic luxury consumer ecosystems.

Drivers of GCC Luxury Resilience and Momentum

A key premise of the GCC market narrative is that resilience is driven by a blend of macroeconomic support, retail strategy, and evolving consumer behavior that collectively sustain luxury demand even in challenging times. The report identifies several pivotal drivers that underpin the region’s upward trajectory:

• Favourable economic conditions and policy support: The GCC countries, especially Saudi Arabia and the UAE, have benefited from government initiatives and macroeconomic policies designed to stimulate discretionary spending and attract international talent and tourism. These conditions create a favorable environment for luxury brands to invest in store formats, premium services, and experiential retail that differentiates the GCC from other markets.

• Retail expansion and premium mall development: The luxury retail landscape in the GCC is expanding with new store openings and high-end mall developments that improve accessibility to luxury brands. The presence of premium retail districts and purpose-built luxury spaces enhances consumer discovery and impulse purchases, and it also supports the creation of immersive, experiential shopping experiences. In the near term, several major malls featuring luxury tenants are scheduled to open across the UAE and Saudi Arabia by 2027, signaling confidence in continued demand and a belief that physical retail remains essential for luxury brands.

• Consumer spending resilience and rising disposable income: The GCC’s consumer base includes a large share of high-net-worth individuals and aspirational luxury shoppers whose disposable incomes have expanded with economic growth, tourism inflows, and a broader upgrading of living standards. The report notes robust consumer confidence and a willingness to allocate a meaningful portion of household budgets to luxury goods, with fashion and beauty benefiting from this elevated willingness to spend.

• Tourism resilience and the influence of affluent travelers: Tourism remains a critical catalyst for luxury sales in the UAE and the wider region. The influx of affluent travelers, including a notable share from markets such as Russia, China, and India, continues to buoy demand across multiple categories. The report highlights that Russian shoppers alone contribute a disproportionately large share of luxury spend, illustrating how tourism can tilt category demand patterns and brand exposure in the GCC.

• E-commerce growth and omnichannel adoption: Even though e-commerce currently represents a smaller slice of the GCC luxury market relative to the global average, the segment is expanding rapidly. Consumers are increasingly comfortable with online shopping and expect seamless omnichannel experiences that blend digital discovery with in-store service. The report identifies skincare and Asian beauty as emerging online drivers, as well as rapid adoption of digital tools and AI-enabled personalization that can improve product discovery and conversion. The online channel’s faster growth rate relative to the global market signals an opportunity for brands to optimize digital storytelling, content marketing, and performance marketing strategies tailored to GCC consumers.

• Multichannel retail strategy and consumer access: The GCC market’s growth is enhanced by a multi-channel approach that combines flagship stores, luxury department stores, and boutique locations with targeted e-commerce platforms. This approach broadens reach while enabling brands to craft differentiated experiences—ranging from personalized consultations and exclusive services to limited-edition merchandise and curated events—that reinforce the emotional dimension of luxury consumption.

• Category mix and demand balance: Fashion remains the largest category by spend, but the beauty category—especially prestige skincare—drives the fastest growth. This dynamic suggests a strategic emphasis on product development, brand storytelling, and experiential retail that aligns with evolving consumer preferences, such as interest in high-efficacy skincare formulations and premium fragrance experiences. The fragrance segment’s prominence within beauty (nearly half of total beauty sales) underscores the importance of olfactory branding and sensory-led store design as drivers of brand equity.

• Market maturity and future expansion potential: Even with robust current performance, the GCC market is positioned for further expansion, supported by structural advantages—high consumer spend, an expanding luxury retail footprint, and a growing base of multi-brand stores and curators that can help introduce new brands to the region. This maturity provides a fertile ground for experimentation with new product categories and brand narratives that speak to GCC consumers’ desire for authenticity, storytelling, and curated experiences.

These drivers collectively explain why the GCC market outperformed many global regions in 2024, offering a resilient platform for brands to build enduring relationships with luxury shoppers while continuing to diversify their regional footprints through new formats, categories, and experiential campaigns.

Consumer Behaviors and Category Shifts in the GCC Luxury Landscape

Understanding how GCC consumers allocate luxury budgets and how their preferences are evolving is essential for brands seeking to optimize product assortments, store formats, and messaging. The GCC’s consumer behavior profile reveals several meaningful patterns that influence category performance and marketing strategies:

• Fashion remains the largest spend category: In 2024, fashion accounted for about 43% of total personal luxury spend in the GCC. The category’s dominance is underpinned by continued demand from ultra-high-end brands and strategic store openings that boost both visibility and accessibility. The growth within fashion exceeded 6% year-on-year, driven by new flagship stores, exclusive product drops, and enhanced in-store experiences designed to convert high-intent shoppers into buyers. Brands are benefiting from a confluence of aspirational demand and the opportunity to present highly curated assortments that resonate with GCC consumers’ taste for luxury, craftsmanship, and status.

• Prestige beauty leads growth, with skincare at the forefront: Prestige beauty outpaced all other segments, delivering growth of more than 12% in 2024, with skincare emerging as the top-performing subcategory, increasing by more than 17% versus 2023. Fragrance remains a central pillar of beauty, contributing 49% of total beauty sales, underscoring the enduring appeal of scent profiles and limited-edition launches in driving consumer engagement and repeat purchases. The region’s beauty growth reflects a shift toward premium skincare, which combines science-backed formulations, luxury packaging, and experiential consumer education in stores and online.

• Fragrance as a consistent beauty anchor: Fragrance’s near-50% share within beauty highlights its role as a steady anchor for beauty retailers. Fragrances often act as high-margin, high-visibility products that can attract both new customers and repeat buyers, leveraging experiential marketing and storytelling around scent heritage, customization, and exclusive exclusives.

• Consumer sentiment and forward-looking spending plans: A strong 97% of GCC consumers indicated plans to maintain or increase their luxury spending in the near term. This sentiment, coupled with ongoing regional retail expansion, signals sustained demand and reduces the likelihood of a sharp decline in consumer activity despite global macro uncertainties. The optimism is reinforced by the region’s evolving luxury ecosystem, which provides more points of access—through new stores, updated concepts, and more immersive shopping experiences.

• E-commerce adoption and online growth dynamics: In 2024, GCC online luxury sales represented roughly 13% of total luxury spend, indicating a smaller share than the global average but with a faster growth trajectory. The region’s online segment grew by over 13% in 2024, a rate that outpaced the global market’s contractions. This acceleration reflects a combination of rising discretionary income, increased comfort with e-commerce, and the expansion of premium online platforms and direct-to-consumer approaches by luxury brands. The online surge is particularly pronounced in skincare and Asian beauty categories, suggesting evolving consumer preferences and competitive differentiation in digital channels.

• The e-commerce opportunity, AI, and new client segments: The GCC’s digital acceleration presents opportunities for AI-driven personalization, enhanced product discovery, and more targeted customer segmentation. Brands can leverage data-driven strategies to tailor recommendations, optimize pricing, and deliver differentiated content that resonates with GCC shoppers’ preferences for sophistication, service, and exclusivity. Emerging client segments—such as younger luxury buyers seeking experiential value and affluent travelers who expect seamless omnichannel experiences—offer avenues for growth in both product assortments and service models.

• The tourist-driven category mix and monitoring shifts: Tourism’s impact is evident in demand patterns across categories such as leather goods, watches, and jewelry, with Dubai acting as a premier luxury shopping destination. As international flows continue, brands should monitor fluctuating tourist demographics and their implications for seasonal demand and promotional calendars, ensuring that inventory and marketing calendars align with peak tourist periods and special events.

• In-store experiences versus online discovery: The GCC market continues to emphasize the importance of physical retail, particularly in luxury where sensory engagement and premium service drive high-value purchases. While online channels grow, in-store experiences—personalized consultations, exclusive services, and aspirational store environments—remain critical to fostering trust, brand affinity, and long-term loyalty. Retailers must balance investment between flagship storytelling and digital enhancements to create cohesive, memorable journeys for consumers across touchpoints.

The consumer behavior patterns outlined above help explain why the GCC market has shown resilience and why a multi-pronged strategy that blends fashion-led moments, skincare-led beauty innovations, and experiential retail can sustain growth well into the next phase of market development.

Digital Transformation, Tourism Flows, and Online Opportunity

Digital acceleration is redefining how GCC luxury consumers select, customize, and purchase products, while tourism continues to shape category demand and brand exposure. The GCC’s digital landscape presents both challenges and opportunities for luxury brands seeking to optimize performance in a rapidly evolving ecosystem:

• Online penetration remains below global averages but is expanding rapidly: The online luxury channel in the GCC accounted for 13% of total luxury sales in 2024, with growth of over 13% year over year. While this share is still behind the global average, the trajectory is clearly upward. Brands that invest in robust e-commerce capabilities—ranging from premium product presentation and quality imagery to efficient fulfillment and premium customer service—stand to gain a larger share of online demand as consumer comfort with digital shopping increases.

• Domestic demand and international traveler influence: Strong domestic demand supports a healthy luxury market, while the inflow of affluent international shoppers—particularly in markets like Russia, China, and India—drives cross-border demand and enriches category mix. This dual dynamic creates a colorful retail ecosystem where international tourists contribute significantly to high-end purchases, and domestic consumers sustain steady growth during non-peak tourism periods.

• The role of omnichannel experiences: GCC shoppers increasingly expect a seamless omnichannel experience that combines the convenience of online discovery with the richness of in-store service. This expectation pushes brands to integrate omnichannel capabilities, such as online consultations, virtual try-ons, click-and-collect, and in-store digital services, to ensure a continuous, frictionless shopping journey. The region’s luxury retailers who optimize omnichannel journeys are well-positioned to convert shoppers at higher conversion rates and with higher average order values.

• AI-enabled personalization and product discovery: The digital acceleration supports the use of AI and data-driven approaches to personalize recommendations, tailor marketing messages, and optimize assortment strategies. Fashion, skincare, and fragrance segments stand to gain from personalized content and experiential online experiences that reflect individual preferences and historical behavior. Brands can leverage AI to predict demand, optimize pricing, and deliver targeted content that resonates with GCC consumers’ tastes and aspirations.

• Tourism-led category watchouts: Given tourism’s substantial share of spending, brands should remain attentive to tourist-season patterns when planning product assortments and promotional calendars. Fashion and leather goods, watches, and jewellery tend to see heightened demand during peak tourist periods and major events, while skincare and fragrance can benefit from targeted promotions anchored around gifting and seasonal rituals.

• Physical retail as a durable anchor: Despite digital growth, physical retail remains a crucial anchor for discovery, personalization, and high-value purchases. The sensory and social dimensions of luxury shopping—expert advice, personalized fittings, exclusive services, and curated experiences—offer benefits that digital channels cannot fully replicate. This underscores the importance of ongoing investments in flagship stores, experiential pop-ups, and premium mall concepts that showcase brands in the best possible light.

• The outlook to 2027 and beyond: With the market projected to reach approximately 15 billion USD by 2027, the GCC’s luxury sector is set for continued expansion driven by a mix of domestic demand, tourist inflows, new retail developments, and the entry of emerging brands. The growth trajectory will likely be supported by the introduction of new categories, including skincare innovations, wellness concepts, athleisure lines with luxury credentials, and Asian beauty concepts that align with shifting consumer interests and global beauty trends.

The digital transformation and tourism-driven dynamics together create a compelling investment thesis for luxury brands in the GCC. Brands that build resilient omnichannel models, leverage AI-enabled personalization, and craft experiences that bridge online discovery with in-store savviness are best positioned to sustain above-market growth levels as the market moves toward 2027 and beyond.

New Entrants, Brand Strategy, and the GCC Growth Trajectory

A notable feature of the GCC luxury landscape is the rising momentum of new-to-region brands and the strategic responses of established names. The report highlights a wave of brand introductions and flagship openings that signal the region’s attractiveness to both legacy maisons and aspirational labels seeking to build meaningful presence in the GCC:

• Flagship openings and brand diversification: The recent openings of flagship stores for contemporary and heritage brands such as Jil Sander and Maison Margiela at the Mall of the Emirates reflect growing demand for new and emerging brands within the GCC. These openings are not merely about increasing shelf space; they signal a strategic emphasis on storytelling, brand narrative, and emotional engagement, which are essential in a market that values curated experiences and exclusivity. The introduction of these brands aligns with the GCC’s desire for emotional connection and experiential shopping that transcends traditional luxury purchases.

• Next-generation luxury brands and consumer expectations: A new generation of luxury brands is actively expanding in the region, driven by rising consumer expectations for emotional resonance, storytelling, and immersive retail formats. The GCC consumer is increasingly seeking brands that offer more than product; they want experiences, exclusivity, and a sense of belonging to a curated lifestyle. In response, new retail developments are designed to elevate service standards, sophistication, and hospitality, enabling brands to create memorable encounters that reinforce brand values and deepen customer loyalty.

• The evolution of retail formats and experiential retail: Market participants anticipate that forthcoming retail developments will enable brands to raise the bar on service and experiential excellence. From premium service hubs and personalized consultations to interactive showrooms and exclusive events, brands can elevate the customer journey by offering more contextualized and immersive experiences. This approach supports the creation of lasting brand impressions and deeper engagement across consumer cohorts.

• Market capacity and the role of new entrants in growth: The GCC’s projected growth to 15 billion USD by 2027 is underpinned by continued demand expansion, more robust tourism inflows, and a rising number of luxury retail anchors in major urban centers. New entrants are expected to contribute to market dynamism by introducing fresh design language, product innovation, and unique consumer experiences that differentiate their brands in a crowded luxury landscape. This competitive environment fosters continuous innovation and a more vibrant luxury ecosystem for GCC consumers.

• The impact of new categories on growth: The market’s growth trajectory will be augmented by the development of new categories—skin care innovations, wellness-oriented luxury products, athleisure with premium credentials, and Asian beauty concepts that align with rising consumer interest in advanced skincare, wellness rituals, and global beauty trends. By expanding the category mix, the GCC market can attract a broader audience, including younger luxury buyers and international visitors seeking contemporary offerings alongside classic luxury.

• E-commerce acceleration and pure-player opportunities: The GCC’s e-commerce segment—while still a minority share of total luxury sales—will likely attract more pure-play luxury platforms and digital-native brands seeking to exploit the region’s high digital penetration and the growing appetite for online discovery. Brands that deploy agile digital strategies, optimize international shipping and local delivery, and tailor content to GCC consumer sensibilities will likely capture incremental share from this channel.

• The strategic significance of seven new malls by 2027: The planned addition of seven malls featuring luxury brands across the UAE and Saudi Arabia by 2027 is a significant milestone. These developments are expected to catalyze further demand, create high-visibility showcase spaces, and attract both international brands and regional players seeking to expand their footprints. This expansion will contribute to greater consumer access, more premium employment opportunities, and stronger brand equity for luxury houses that align with the GCC’s aspirational consumer segment.

• The path to 2027: A multi-faceted growth strategy: The GCC’s journey toward reaching 15 billion USD by 2027 will be driven by a combination of domestic spending growth, sustained tourism flows, strategic mall investments, and the continued introduction of new and expanding luxury brands. Brands should focus on building deep local relevance, aligning product assortments with GCC preferences, leveraging experiential retail to foster emotional connections, and integrating digital channels to accelerate discovery and conversion. By embracing these dimensions, brands can navigate the region’s evolving luxury landscape and participate in its next growth wave.

In sum, the GCC’s luxury market is characterized by a powerful blend of established strengths and fresh growth catalysts. The region’s mix of high-spending consumers, supportive macro conditions, expanding retail infrastructure, and a wave of new entrants and flagship openings positions it as a critical hub for luxury growth in the Middle East and beyond. Brands that implement customer-centric, experiential, and digitally enabled strategies will be well positioned to capture value as the market approaches 2027 and beyond.

The Path to 2027: Emerging Categories and Growth Catalysts

Looking ahead to 2027, the GCC personal luxury market is expected to continue its upward trajectory, with projections pointing toward a total market size of around 15 billion USD. This growth horizon is underpinned by several catalysts and emerging category opportunities that could redefine the consumer luxury experience in the region:

• Skincare, wellness, and Asian beauty as growth engines: The skincare segment’s rapid growth trajectory establishes it as a central pillar of beauty strategy in the GCC. The broader wellness category—encompassing premium self-care routines, spa-inspired products, and holistic beauty experiences—also presents a meaningful growth channel. Asian beauty concepts, which bring distinctive formulations and ritual-driven routines, are increasingly resonating with GCC consumers who seek advanced skincare technologies and premium packaging. Brands that develop locally relevant formulations, partner with top beauty specialists, and deploy education-forward campaigns can capitalize on this demand shift.

• New retail formats and experiential upgrades: The GCC’s luxury ecosystem is driven by a continuous push toward more sophisticated retail experiences. The planned mall openings and revamps offer opportunities to deploy immersive brand spaces, interactive displays, and bespoke service models that immerse customers in a curated lifestyle narrative. Experiential retail, including personalized styling sessions, skin consultations, fragrance ateliers, and hands-on product demonstrations, can deliver higher engagement and conversion rates, especially when paired with digital enhancements and loyalty programs.

• E-commerce as a growth multiplier: While online sales currently trail the global average, the GCC market’s rapid online growth makes digital channels a strategic leverage point. Brands that optimize online discovery, invest in high-quality content and influencer partnerships, and provide reliable, premium delivery services will be positioned to convert online engagement into sales at elevated price points. The synergy between online and offline experiences—such as online-to-offline (O2O) strategies and in-store digital experiences—will be essential to maximizing cross-channel conversions.

• Tourism-driven demand and destination shopping: Dubai and other GCC hubs remain magnets for international travelers seeking luxury goods. The continued growth of tourism, including affluent visitors from Russia, China, and India, will sustain cross-border demand and cross-category consumption. Brands can benefit from targeted promotions that coincide with peak tourist seasons and festival calendars, while ensuring that store layouts and product assortments reflect the preferences of cosmopolitan travelers who value brand narratives, exclusivity, and service excellence.

• The role of new entrants and brand storytelling: A broader array of new-to-region brands enters the GCC market, bringing fresh design language and storytelling approaches. For these brands, the GCC context offers a unique opportunity to establish a strong regional identity through flagship stores, curated events, and collaborations with local fashion and beauty ecosystems. The emphasis on emotional connection and curated experiences will help these brands differentiate themselves in a crowded landscape and accelerate loyalty-building efforts.

• The importance of sustainability and ethical luxury: While not explicitly highlighted in every detail of the report, the trajectory toward sustainable and ethically produced luxury is a global trend that is increasingly reflected in GCC consumer expectations. Brands that integrate transparent sourcing, responsible packaging, and authentic storytelling around sustainability may find resonance with GCC shoppers who seek quality, provenance, and legacy in their purchases.

• The strategic role of government-backed development and tourism strategy: The GCC’s growth will be supported by ongoing government initiatives aimed at diversifying economies, developing premium tourism, and expanding luxury retail infrastructure. These macro-level strategies will influence where new malls, concepts, and stores are opened, reinforcing the region’s attractiveness for luxury brands and investors.

• The challenge and opportunity of balancing price positioning: As new entrants and premium brands expand in the GCC, brand positioning will matter more than ever. Striking the right balance between aspirational luxury and attainable prestige requires nuanced pricing, curated product assortments, and exclusive services that reinforce brand value without eroding perceived exclusivity.

In summary, the GCC market’s outlook to 2027 is shaped by a combination of rapidly evolving beauty categories, enhanced retail formats and experiential strategies, increasing e-commerce sophistication, dynamic tourism flows, and a sustained influx of new-to-region luxury brands. The convergence of these forces suggests a fertile environment for brands that can deliver compelling narratives, elevated service, and seamless omnichannel experiences aligned with GCC consumer preferences.

Conclusion

The GCC’s personal luxury market in 2024 demonstrates a rare blend of resilience, breadth, and growth potential. With 12.8 billion dollars in sales and a 6% year-on-year increase, the region outpaced many global benchmarks and reinforced its status as a critical hub for luxury brands seeking high-impact expansion. The market’s breadth—encompassing fashion, prestige beauty, watches, and jewellery—reflects a diversified demand base that supports a range of strategic options for retailers and brand partners alike.

Consumer behavior in the GCC reveals both continuity and evolution. Fashion remains the dominant spend category, while prestige beauty—especially skincare—drives the fastest growth within the beauty segment. The fragrance category maintains a strong, enduring presence within beauty, and consumer sentiment remains buoyant, with close to 97% of GCC shoppers planning to maintain or increase their spending in the near term. The pace of e-commerce adoption is accelerating, with online luxury sales rising at a rate well above the global average, even as the offline experience continues to play a decisive role in high-value transactions and brand storytelling.

In terms of market dynamics, several catalysts are set to shape the GCC’s luxury trajectory toward 2027. Ongoing retail expansion, including seven new luxury-focused malls planned across the UAE and Saudi Arabia by 2027, will boost accessibility and create premium experiences that attract both local and international shoppers. The entry of new-to-region brands—alongside flagship openings for established names—signals a shift toward more diverse brand narratives and richer consumer experiences in the GCC. Emerging categories, notably skincare, wellness, athleisure with luxury credentials, and Asian beauty, are expected to power the next wave of growth, supported by a broader shift toward digital acceleration and omnichannel consumer journeys.

As the market moves toward its 2027 target of approximately 15 billion USD, stakeholders should remain mindful of concurrent opportunities and challenges. The GCC’s luxury ecosystem will likely benefit from continued government support for premium retail development and tourism, a dynamic mix of domestic demand and international shopper inflows, and a sophisticated consumer base that increasingly expects high-touch service, experiential retail, and digitally enhanced shopping experiences. Brands that align with these preferences—delivering compelling brand stories, personalized customer journeys, and seamless integration of physical and digital channels—will be well-positioned to capture greater share of the GCC luxury market in the years ahead.

This evolving landscape presents a compelling case for investors, retailers, and brand partners seeking to capitalize on one of the world’s most vibrant and resilient luxury markets. The GCC’s personal luxury sector embodies a forward-looking blend of traditional luxury appeal and innovative growth strategies, promising sustained momentum, diverse category expansion, and a durable path to 2027 and beyond.