Gulf Cooperation Council Luxury Goods Market Size

Study Period: | 2018 - 2028 |
CAGR: | 4 % |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Gulf Cooperation Council Luxury Goods Market Analysis
Gulf Cooperation Council Luxury Goods Market is poised to grow at a CAGR of 4% during the forecast period (2022-2027).
With the onset of COVID-19, players realized the disadvantages of having only brick and mortar as the sales channel; thereby, they started to strategize and diversify their distribution channels. Most players started developing their digital channels to reduce the buyer-seller gap. For instance, Industry giants like Richemont Group improved and developed its already existing digitized channel, contributing 8% to the group's sales in Q1 2020 compared to 2% in Q1 2019.
The Gulf Cooperation Council Luxury goods market is growing significantly due to heavy reliance on oil and hydrocarbon revenues. The market is further expected to grow positively owing to the proactive government complemented by the factors such as an expanding population base, high GDP per capita, and the growing tourism sector.
The emergence of e-commerce has provided consumers easy access to product-related information and prices through online sources. This factor has further contributed to the overall growth of the luxury goods market. Consumers in the Gulf Cooperation Council are highly conscious of their luxury cosmetics and fragrances choices. Hence, the companies operating in the market are working to enhance their sustainable packaging styles.
Gulf Cooperation Council Luxury Goods Industry Segmentation
A luxury good is a premium/high-end product available in the market. The GCC luxury goods market is segmented by type, distribution channel, and country. For each segment, the market sizing and forecasts have been done based on value (in USD million).
By Type | |
Clothing and Apparel | |
Footwear | |
Bags | |
Jewellery | |
Watches | |
Other Accessories |
By Gender | |
Male | |
Female |
By Distribution Channel | |
Single branded stores | |
Multibranded stores | |
Online stores | |
Others |
Geography | |
Saudi Arabia | |
United Arab Emirates | |
Qatar | |
Kuwait | |
Oman | |
Baharain | |
Rest of Gulf Cooperation Council |
Gulf Cooperation Council Luxury Goods Market Trends
This section covers the major market trends shaping the Gulf Cooperation Council Luxury Goods Market according to our research experts:
UAE is the Regional hub for Luxury Shopping in the Gulf Cooperation Council
Dubai has continued to be the key regional hub for purchasing luxury goods and has stood out as a leader in retail space quality. Also, other cities in the UAE have risen in their rankings in terms of the cost of living. UAE has always been an attractive location for ex-pats. Due to the highly competitive compensation packages, falling real estate prices, high safety standards, and a healthy economy, it continues to be so. Dubai and Abu Dhabi feature among the top 10 cities globally in terms of the new retail space under construction. They also witness the highest amount of growth in terms of HNIs. Hence, UAE poses higher growth for luxury goods sales, with clothing and apparel taking the highest share of about 40% in value.
Demand for Swiss watches is growing in the UAE. The market recently saw various timepieces featuring the region's symbols.

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E-commerce is the Fastest-growing Segment
The GCC online retail market is growing fast and is drawing huge attention from investors across the globe. Bahrain, UAE, and Qatar have the highest internet penetration rates in the world at present. None of the main reasons behind online channel purchases is consumer comfort. The rapid growth was fueled by improved product range, ease of buying, customer choice of the delivery date, and a smooth purchasing experience. Luxury fashion has developed itself in the digital world. Consumers now engage with most brands through their online stores and multi-brand e-tailers. About half of the luxury goods buyers are now swayed by what they hear or watch on the internet. From Louis Vuitton to Chanel and Gucci, luxury fashion houses have been rushing to embrace digital, whether by partnerships with multi-brand sites, like Farfetch, creating their websites, or combining the two. The shift to digital makes sense as online purchases are projected to fuel potential luxury goods demand growth. As a result, sales of brick-and-mortar retailers will decline. Some well-known online stores offering luxury products across the market include Tutus Kurniati, Goshopia, The Luxury Closet, Ounass, Tryano, Farfetch UAE, Bloomingdale’s, and Elilhaam.

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Gulf Cooperation Council Luxury Goods Industry Overview
The GCC luxury goods market is highly competitive, with global and domestic players. The key players are Al Tayer Group, Etoile Group, AW Rostamani Group, Alshaya franchise group, and The Estee Lauder Companies Inc. However, the global players, including Rolex SA, Roberto Cavalli SpA, LVMH, Chanel SA, Kering Group, and Compagnie Financiere Richemont SA, show dominance over the market. Companies compete on different factors, including product offerings, quality, sustainable packaging, marketing, and brand omnichannel activities, to gain a competitive advantage in the market and expand their business. The emergence of e-commerce further contributed to the overall growth of the Gulf Cooperation Council luxury goods market.
Gulf Cooperation Council Luxury Goods Market Leaders
Al Tayer Group
Etoile Group
AW Rostamani Group
Alshaya franchise group
The Estee Lauder Companies Inc.
*Disclaimer: Major Players sorted in no particular order

Gulf Cooperation Council Luxury Goods Market News
· In 2020, Tommy Hilfiger announced the launch of its first-ever Hijab. The lightweight material of the Hijab, made of fine, woven jacquard with a light shimmer of soft lurex yarn, was designed to allow optimum breathability and elegant comfort. This launch aimed to strengthen the brand’s ongoing philosophy of inclusivity and diversity covering GCC regions.
· In 2020, Calvin Klein Inc., a wholly owned subsidiary of PVH Corp., announced opening its first Calvin Klein store in the Dubai Mall. The 207-square-meter store is the first of its kind to open in the largest mall in the Middle East & African region and is to be launched in collaboration with the Apparel Group LLC.
· In 2020, Burberry launched three new business units, namely, ready-to-wear, accessories, and shoes, in the global market, including the United Arab Emirates, aiming to enhance product focus. The company believes embedding product specialization will enable it to elevate quality and increase agility.
Gulf Cooperation Council Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Clothing and Apparel
5.1.2 Footwear
5.1.3 Bags
5.1.4 Jewellery
5.1.5 Watches
5.1.6 Other Accessories
5.2 By Gender
5.2.1 Male
5.2.2 Female
5.3 By Distribution Channel
5.3.1 Single branded stores
5.3.2 Multibranded stores
5.3.3 Online stores
5.3.4 Others
5.4 Geography
5.4.1 Saudi Arabia
5.4.2 United Arab Emirates
5.4.3 Qatar
5.4.4 Kuwait
5.4.5 Oman
5.4.6 Baharain
5.4.7 Rest of Gulf Cooperation Council
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Al Tayer Group
6.4.2 Etoile Group
6.4.3 AW Rostamani Group
6.4.4 QELA
6.4.5 Pharmakeia
6.4.6 Alshaya franchise group
6.4.7 Santos de Cartier
6.4.8 Chanel
6.4.9 Dolce & Gabbana
6.4.10 Joyalukkas
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Gulf Cooperation Council Luxury Goods Market Research FAQs
What is the study period of this market?
The Gulf Cooperation Council Luxury Goods Market is studied from 2018 - 2028.
What is the growth rate of Gulf Cooperation Council Luxury Goods Market?
The Gulf Cooperation Council Luxury Goods Market is growing at a CAGR of 4% over the next 5 years.
Who are the key players in Gulf Cooperation Council Luxury Goods Market?
Al Tayer Group, Etoile Group, AW Rostamani Group, Alshaya franchise group, The Estee Lauder Companies Inc. are the major companies operating in Gulf Cooperation Council Luxury Goods Market.
Gulf Cooperation Council Luxury Goods Industry Report
Statistics for the 2023 Gulf Cooperation Council Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Gulf Cooperation Council Luxury Goods analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.