GCC Luxury Goods Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

GCC Luxury Goods Market Trends and Insights

Consumers’ inclination toward limited-edition products

In the Gulf Cooperation Council luxury goods market, wealthy consumers are increasingly drawn to exclusive, limited-edition products. This has led brands to create regionally inspired collections that boost demand and profits. The growing number of wealthy individuals supports this trend, with the United Arab Emirates seeing a net increase of 6,700 high-net-worth individuals in 2024, the highest globally, according to the World Economic Forum^{[1]Source: World Economic Forum, "Bahrain Economic Development Board: Private wealth is coming to the Gulf. Here’s why," weforum.org}. For example, Dubai Watch Week 2023 attracted over 23,000 visitors, a 42% rise from the previous event, and showcased more than 20 exclusive watch launches designed for local preferences. Similarly, in August 2025, the Apparel Group launched the ALDO Artist Series, a 16-piece collection available in Gulf Cooperation Council stores, created in collaboration with four global artists, blending cultural storytelling with footwear and accessories. These strategies, including limited-edition watches, Ramadan-themed couture, collaborative footwear, and custom fragrances, enhance the appeal of luxury products while increasing prices and profit margins through exclusivity.

Government-supported heritage festivals driving increased spending

Government-supported heritage festivals are driving luxury spending in the Gulf Cooperation Council by combining culture, tourism, and premium retail in major events. In Saudi Arabia, Riyadh Season 2024 showcased the “Christian Dior: Designer of Dreams” exhibition, which opened on November 21, 2024, and the “1001 Seasons of Elie Saab” fashion show on November 13, 2024. These events featured global celebrities like Celine Dion and Jennifer Lopez and promoted luxury shopping in restored heritage areas. Layali Diriyah 2025, starting on February 12, 2025, drew over 110,000 visitors to its unique setting near the Diriyah United Nations Educational, Scientific, and Cultural Organization (UNESCO) site, offering designer pop-ups, retail activities, and cultural experiences. In the United Arab Emirates, Abu Dhabi’s “Timeless Eid, Timeless Luxury” campaign continues to link luxury retail promotions with public holidays, increasing visits and time spent in high-end malls. These festivals create regular boosts in spending on apparel, accessories, and gifts while strengthening the cultural connection to luxury shopping.

Growing preference for sustainable and eco-certified luxury products

Consumers in the Gulf Cooperation Council are increasingly choosing sustainable and eco-friendly luxury products. They now prioritize ethical sourcing, recyclable packaging, and halal compliance when selecting premium brands. This shift is supported by new regulations, such as the United Arab Emirates' ban on single-use plastic bags starting January 1, 2024, and Saudi Arabia’s upcoming carbon labeling rules, as per the Government of Ajman^{[2]Source: Government of Ajman, "Ajman Municipality Announces Ban on Single-Use Plastic Bags," am.gov.ae}. Sustainability is becoming a standard expectation rather than a trend. For example, the Saudi Green Initiative has already attracted over SAR 705 billion in green investments by 2024, as per Saudi and Middle East Green Initiatives^{[3]Source: Saudi and Middle East Green Initiatives, "SGI: steering Saudi Arabia towards a green future," sgi.gov.sa}. Luxury brands are also adapting to this demand. Lebanese brand Orient 499 opened a sustainable luxury store in Dubai’s Alserkal Avenue in December 2024, offering ethically made clothing and homeware using traditional techniques. When sustainability aligns with Islamic values like responsibility and stewardship, it builds trust, encourages repeat customers, and pushes luxury brands to focus on organic fabrics.

Expansion of luxury shopping malls and retail real-estate

The growth of luxury shopping malls and retail spaces in the Gulf Cooperation Council is turning the region into a top destination for high-end shoppers. Majid Al Futtaim is leading this expansion by opening over 30 new stores, including stand-alone outlets for Eleventy and Corneliani, in key locations across Saudi Arabia and the United Arab Emirates by 2025. Similarly, Cenomi Centres’ Jawharat Riyadh, expected to open in the second half of 2025, will cover 185,000 square meters of Gross Leasable Area (GLA) and feature more than 300 stores, including over 60 luxury boutiques, along with entertainment zones and food and beverage options. These developments are projected to attract millions of visitors each year and generate significant retail spending. They also benefit nearby hospitality and leisure businesses. By focusing on flagship locations, these projects help luxury brands maintain authenticity, reduce counterfeit risks, and offer a premium shopping experience that appeals to both local customers and tourists.

Rising availability of counterfeit products

The issue of counterfeit luxury goods continues to be a major challenge in the GCC luxury goods market. The growing use of online platforms has further complicated the problem, as counterfeit sellers take advantage of loopholes in cross-border shipping regulations to distribute fake products more easily. In Kuwait, authorities made significant efforts to address the issue, confiscating over 623,000 counterfeit items from a warehouse in Farwaniya in June 2024 and seizing more than 720 fake goods at the Friday Market in Al-Rai in August 2024. Brands are working to tackle this problem by implementing advanced technologies such as blockchain-based certificates, unique QR codes, and exclusive service warranties to verify the authenticity of their products. They are running consumer awareness campaigns to educate buyers on how to identify genuine products. The persistence of this issue highlights the need for ongoing collaboration between governments, brands, and consumers to effectively combat counterfeit activities.

Strict regulatory frameworks and associated compliance expenses

Strict regulatory requirements and the high costs of compliance pose significant challenges for the GCC luxury goods market. Different Value-Added Tax (VAT) rates across the region, such as 15% in Saudi Arabia and 5% in the United Arab Emirates, directly impact pricing strategies and make cross-border sales more complex. The United Arab Emirates' e-invoicing mandate, which will take effect in July 2026 under Federal Decree-Law No. 17 of 2024, requires businesses to adopt advanced invoicing systems, as per the Government of the United Arab Emirates^{[4]Source: Government of the United Arab Emirates, "Federal Decree-Law On Anti-Money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organizations", uaelegislation.gov.ae}. Similarly, anti-money-laundering regulations under Federal Decree-Law No. 20 of 2018, which were further reinforced in 2024, demand that luxury retailers implement strict compliance measures. Furthermore, temporary import permits for exhibitions and excise taxes on specific luxury items add to the administrative burden. These regulations create additional overhead expenses, complicate logistics, and reduce profitability for both regional and international luxury brands.

Segment Analysis

By Product Type: Watches Drive Premium Growth

In 2024, clothing and apparel remained the largest segment in the GCC luxury goods market, accounting for 35.72% of the market share. This segment benefits from the region's strong cultural preference for premium traditional clothing, such as abayas and kanduras, as well as luxury occasion wear. Both wealthy locals and tourists are drawn to these garments, which combine cultural significance with modern fashion trends. The availability of custom tailoring, high-quality materials, and exclusive collections further supports the demand. To cater to changing consumer expectations, retailers are increasingly offering personalized in-store services and curated online shopping experiences, making this segment a cornerstone of the market.

Watches are the fastest-growing segment, with a projected CAGR of 10.68% through 2030. The demand for exclusivity and fine craftsmanship has encouraged leading watch brands, including Swiss manufacturers, to launch Gulf-exclusive designs and limited-edition collections. Events like Dubai Watch Week have further boosted interest by providing immersive experiences and opportunities for customers to engage directly with luxury timepieces. High-net-worth individuals and collectors are driving sales through both physical stores and online platforms. The focus on heritage, rarity, and storytelling has positioned watches as a rapidly expanding category, complementing the established dominance of luxury apparel in the Gulf Cooperation Council market.

Note: Segment shares of all individual segments available upon report purchase

By End User: Men’s Segment Momentum Builds

In 2024, women continued to dominate the GCC luxury goods market, contributing to 65.67% of the total spending. This dominance is largely due to their high disposable incomes, a strong culture of gifting, and the presence of numerous luxury shopping malls that cater specifically to female preferences. Women are drawn to luxury fashion, accessories, beauty products, and skincare, which symbolize both style and social status. Many brands focus on building loyalty through personalized services, exclusive collections, and unique in-store experiences. Seasonal promotions and loyalty programs further strengthen the connection between female consumers and the luxury market in the region.

Although smaller in size, the men’s segment is growing rapidly and is expected to achieve a CAGR of 10.99% through 2030. This growth is driven by changing corporate dress codes, the influence of male celebrities and social media influencers, and an increasing interest in premium grooming products, fragrances, and fashion. Men are now more inclined to invest in luxury items for both professional and personal use. To cater to this demand, brands are introducing tailored collections, bespoke services, and immersive retail experiences designed specifically for male consumers. As this segment expands, it is set to play a significant role in driving the growth of the Gulf Cooperation Council market.

By Distribution Channel: Digital Transformation Accelerates

Single-brand boutiques continued to dominate the GCC luxury goods market in 2024, accounting for 45.68% of total sales. These stores are popular because they provide a unique shopping experience, often located in prime areas like the Dubai Mall and the Mall of the Emirates. They attract customers by offering personalized services, exclusive product collections, and special in-store events that enhance brand loyalty. The physical presence of these boutiques allows customers to engage with the brand directly, creating a sense of exclusivity and connection. Seasonal product launches and limited-edition items further strengthen their appeal, making them a preferred choice for luxury shoppers in the region.

On the other hand, online luxury stores are growing rapidly and are expected to expand at a CAGR of 12.56% through 2030. This growth is fueled by the widespread use of smartphones, with over 90 percent penetration in countries like the United Arab Emirates and Saudi Arabia, and the increasing availability of same-day delivery services. Online platforms offer convenience and a wide range of products, making luxury shopping more accessible to a broader audience. Features like virtual consultations, augmented reality (AR) try-ons, and personalized recommendations enhance the online shopping experience. As a result, e-commerce is becoming an essential part of the Gulf Cooperation Council market, complementing the traditional boutique shopping experience.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The United Arab Emirates contributed 48.62% of the GCC luxury goods market in 2024. This strong performance is supported by a well-developed luxury retail environment, featuring renowned shopping hubs like Dubai Mall, Mall of the Emirates, and Yas Mall. The country benefits from efficient free-zone logistics, simplified customs procedures, and the integration of retail with tourism, which attracts both local and international shoppers. Expansions such as Dubai Mall Zabeel, which brings together luxury furniture and décor brands, are expected to further enhance the United Arab Emirates' position as a leader in the luxury market.

Saudi Arabia is the fastest-growing market in the Gulf Cooperation Council, with a projected CAGR of 10.25% through 2030. This rapid growth is fueled by the Kingdom's Vision 2030 initiatives, which include large-scale development projects and cultural festivals that incorporate luxury brand showcases in heritage-rich locations. The upcoming launch of two Majid Al Futtaim malls is expected to add over 600 luxury storefronts, further boosting the market. Although higher import duties have increased prices, they have also encouraged consumers to shop locally, prompting global luxury brands to establish directly operated stores in key cities like Riyadh and Jeddah.

Qatar and Kuwait continue to demonstrate strong demand for luxury goods, driven by high GDP per capita and a preference for shopping locally rather than traveling abroad, especially after the pandemic. Qatar's luxury market thrives with flagship destinations like Place Vendôme and Villaggio Mall, while Kuwait's 360 Mall offers a wide range of premium brands through vertically integrated concessions. Oman, though smaller in market size, is gaining attention for its niche offerings. For example, the expansion of Amouage under L’Oréal's management highlights the potential for local luxury brands to grow and succeed on an international scale.