The Middle East offers further growth potential for luxury retailers while the global market is set to see a slowdown, according to a new report from Deloitte.
Deloitte's "Global Powers of Luxury Goods 2016 Disciplined innovation" report said luxury malls in Dubai and Abu Dhabi will continue to put the UAE high on the map for top-end retail firms in the coming years.
It added that big-name brands perform well in the region, with tourism a major driver of sales in Dubai.
Although the region is likely to feel the impact of political unrest as well as global economic uncertainty, further growth is expected overall, it added.
The report said that globally, the growth rate is slowing in important markets such as China and Russia, although some markets continue to perform well and there are pockets of opportunity across the globe inluding in the Middle East, India and Mexico.
The report examines and lists the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in financial year 2014.
"The Middle East represents a big opportunity for luxury brands. Luxury malls in Abu Dhabi and Dubai have helped put these cities on the map for the industry, and the United Arab Emirates as a whole continue to enjoy strong growth," said Herve Ballantyne, partner and consumer and industrial products leader at Deloitte in the Middle East.
"Well-established big-name brands perform well in the region, and tourism is a major driver of sales in Dubai. Although the region is likely to feel the impact of political unrest as well as global economic uncertainty, but further growth is expected overall."
According to the report, the world's 100 largest luxury goods companies generated sales of $222 billion in financial year 2014, 3.6 percent higher year-on-year. The average luxury goods annual sales for a top 100 company is now $2.2 billion.
Italy was named the leading luxury goods country in terms of number of companies with 29 companies in the top 100, more than double the number based in the US, which has the second-largest number.