MEA Luxury Goods Market Size

Middle East & Africa Luxury Goods Market Analysis

The MEA Luxury Goods Market size is estimated at USD 14.05 billion in 2024, and is expected to reach USD 19.02 billion by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).

In the Middle East and Africa, especially in GCC countries, more than half of the consumers claim to have increased their spending on luxury goods. In the past few years, the Middle East luxury goods industry has been through a period of expansion, as major companies have grown by extending the reach of their brand distribution network and opening new stores in the region. Consumers in countries such as Saudi Arabia prefer luxury goods over conventional ones, owing to their high purchasing power and sustainable demand for these products that reflect their social status. In March 2022, Kering Group's Gucci debuted its glittering high jewellery pieces encompassing necklaces, rings, and bracelets to the United Arab Emirates for the first time, transforming a villa on Palm Jumeirah into a garden for the occasion.

Over the long term, the luxury goods market in the Middle East and Africa is expected to grow because of the increase in disposable income, growing millennial population, increasing tourism, and penetration of global market players in the region. Global market players like Gucci, LMVH, PVH, and Rolex are launching their products in the market, which is grabbing the attention of consumers. For instance, in July 2021, Versace unveiled its new boutique at The Galleria Al Maryah Island, Abu Dhabi, expanding the destination's exceptional portfolio and reinforcing the mall's position as the premier luxury and retail destination in the capital. The e-commerce websites are also growing in the region, which is expected to drive the market over the medium term.