UAE luxury retail sector 'still attractive' despite slowdown

Deloitte says wider Middle East market continues to represent 'big opportunity' for luxury brands

Consumers in the UAE say they have increased their spending on luxury products by 70 percent over the past five year, much higher than in more mature markets such as Europe and the United States.

A new report from Deloitte said emerging consumer markets, such as the UAE, China and Russia, continue to drive luxury market growth globally.

According to the fourth annual Global Powers of Luxury Goods report, luxury retail spending rose by 53 percent since 2012 in the more mature markets.

James Babb, clients and industries leader, Deloitte, Middle East, said the market in the Middle East continues to represent a big opportunity for luxury brands.

“Luxury markets in Abu Dhabi and Dubai have helped to promote these cities as desirable shopping destinations. Well established big-name brands have performed well in the region, and tourism is a major driver of sales in Dubai."

However, he added that the market saw a significant slowdown in 2016, caused by the low oil prices, higher gold prices and an increase in the cost of living.

“The region is likely to feel the impact of political unrest as well as global economic uncertainty, but further growth is nevertheless expected as Dubai and Abu Dhabi continue to be attractive shopping destinations," he noted. 

The report said that the world’s 100 largest luxury goods companies generated sales of $212 billion in 2015. The average luxury goods annual sales for a Top 100 company is now $2.1 billion.

Italy was ranked the leading luxury goods country in terms of number of companies, while France has the highest share of sales – with 26 companies in the Top 100.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
How Ramadan has earned prime spot on Gulf fashion calendar

How Ramadan has earned prime spot on Gulf fashion calendar

From Dolce & Gabbana to Michael Kors, major brands are catering...

Focus: 'Amazon did not come to the region for Souq.com alone'

Focus: 'Amazon did not come to the region for Souq.com alone'

E-commerce experts say retailers will have to up their game following...

5
Saudis tighten their belts for Eid in age of austerity

Saudis tighten their belts for Eid in age of austerity

Gov't cuts, which began late in 2015, are now rippling through...

Most Discussed
sponsoredTracking