United Arab Emirates Luxury Goods Market - Growth, Trends, and Forecasts (2022 - 2027)

The UAE Luxury Goods Market is segmented by Product Type (Clothing and Apparel, Footwear, Bags, Jewelry, Watches, and Other Product Types) and by Distribution Channel (Offline Retail Channel and Online Retail Channel). The report offers the market sizes and values in USD million during the forecast period for the abovementioned segments.

Market Snapshot

UAE Luxury Goods Market Size
Study Period: 2016 -2027
Base Year: 2021
CAGR: 5.2 %

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Market Overview

The UAE luxury goods market is valued at USD 3.78 billion in the current year and is projected to register a CAGR of 5.20% during the upcoming five years.

The luxury goods market witnessed a steep decline due to the COVID-19 pandemic. This was largely attributed to the falling global economy and consumer resilience to splurge on luxury items. Moreover, the lockdowns and restrictions restrained the market growth further in the past couple of years. This mainly reduced the sales from offline retail channels, impacting the companies that primarily relied on brick-and-mortar platforms. As a result, many players started developing digital channels to reduce the buyer-seller gap. For instance, 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.

In the long term, the increasing disposable income and growing premiumization among urban consumers are anticipated to drive the market demand. Subsequently, tourism in the United Arab Emirates is projected to grow at a healthy rate during the forecast period and offers the players in the market significant opportunities for expansion and growth. Additionally, luxury brands have been launching offline stores in innovative formats to capture consumer interest and generate revenue. For instance, in October 2021, Gucci launched a new pop-up store at Dubai’s iconic Burj Al Arab. This store was the first of its kind in the region and coincided with the United Arab Emirates 50th anniversary and Expo 2020.

Due to overexposure to social media platforms and mass consumption, consumers expect personalized products or individualized care from brands. One of every five luxury shoppers believes customization or tailoring is essential for purchasing luxury goods.

Scope of the Report

Luxury goods are highly desirable products, and their value in terms of price and quality is comparatively higher than mass products. The luxury goods market in the United Arab Emirates is segmented by product type and distribution channel. By product type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other product types. Based on the distribution channel, the market is segmented into offline retail channels and online retail channels. A complete background analysis of the UAE luxury goods market, which includes an assessment of significant changes in the market dynamics, and the market overview are covered in the report. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Product Type
Clothing and Apparel
Other Product Types
By Distribution Channel
Offline Retail Channels
Online Retail Channels

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Key Market Trends

Increasing Tourism and Growing Cultural Influence

The United Arab Emirates is among the most visited countries in the world, and with the support of the regulatory bodies of the country, the tourism industry is witnessing a surge. According to Dubai’s Department of Economy and Tourism, Dubai hosted more than 7 million international visitors during the first half of 2022, a rise of 183% Y-o-Y. In 2021, Dubai received a total of 7.28 million international visitors. The sustained growth of the UAE luxury goods market can be attributed to the continuing rise in the tourism industry. Travelers visiting the country often buy luxury goods from the outlets of various multinational brands and take them back to their homes, where certain brands or products may not be commercially available. 

The United Arab Emirates is an economically strong market, and major multinational brands have often launched their premium products earlier in this country than many others. Tourists often come across things that the United Arab Emirates is famous for, such as luxury perfumes and leather products. For instance, the luxury goods brand, Gucci, has a product portfolio in the country that comprises more than 29 variants of perfumes. Thus, as the tourism industry continues to grow, the luxury goods market in the country is likely to grow at a healthy rate, posing significant opportunities for the players to introduce their products to the local market.

Luxury Goods Market: Arrivals of International Tourists, in Million, United Arab Emirates, 2020-2021

E-commerce Sales Picking Up Pace Compared to Offline Sales

With the increasing digital adoption, e-commerce is becoming a reality, shaping new user interactions, disrupting business models, and creating new growth opportunities for single and multi-brand luxury goods stores in the country. As more customers move online, businesses follow suit, leading to the digital ecosystem's gradual development. It provides easy access to product-related information and prices to the customers, which further contributes to the overall growth of the UA E luxury goods market. In April 2022, Business of Preloved Fashion (BOPF), a luxury fashion brand, entered the UAE market and launched an online platform to create a direct interaction between buyers and sellers. Retailers are increasingly using technologies like augmented reality (AR) and metaverse to help online customers improve their shopping experience. 

Additionally, government initiatives promote e-commerce in the region, boosting the market's growth. For instance, the UAE government set up a duty-free e-commerce hub Matajircom, as an initiative to work closely with local and international companies.

Luxury Goods Market: Growth of E-Commerce Spending, by Category, United Arab Emirates, 2021

Competitive Landscape

The UAE luxury goods market is highly competitive, with the presence of both global and domestic players. However, the global players, including Rolex SA, LVMH Moët Hennessy Louis Vuitton, Kering Group, Compagnie Financiere Richemont SA, and Chanel SA, show dominance over the market. Key players are now focusing on social media platforms and online distribution channels for online marketing and branding of their products, as the United Arab Emirates has the highest percentage of internet users who transact online. For instance, e-retailers specializing in luxury goods, such as Souq.com, Awok.com, Bloomingdale's Inc., and Elilhaam, have witnessed rapid growth in their annual revenues owing to an increase in the number of consumers shopping online. Online sales, especially during the pandemic, witnessed a boom due to social distancing norms and restrictions.

Major Players

  1. Rolex SA

  2. Kering Group

  3. Chanel SA

  4. LVMH Moët Hennessy Louis Vuitton

  5. Compagnie Financière Richemont S.A.


Recent Developments

  • March 2022: Kering Group's Gucci debuted its glittering high jewelry pieces encompassing necklaces, rings, and bracelets in the United Arab Emirates. The jewelry pieces are created using white gold, white diamonds, and sapphires in many hues.
  • July 2021: Versace unveiled its new boutique at The Galleria Al Maryah Island, Abu Dhabi. The new boutique spans 152 square meters and features a full selection of Versace ready-to-wear fashion and accessories for men and women.
  • May 2021: A new Rolex Boutique was opened at The Galleria Al Maryah Island in Abu Dhabi, the capital of the United Arab Emirates. The boutique features a "watchbar" and various seating areas where clients are welcome to sit, as well as a VIP room that proudly displays the extensive collection.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Product Type

      1. 5.1.1 Clothing and Apparel

      2. 5.1.2 Footwear

      3. 5.1.3 Bags

      4. 5.1.4 Jewelry

      5. 5.1.5 Watches

      6. 5.1.6 Other Product Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 Offline Retail Channels

      2. 5.2.2 Online Retail Channels


    1. 6.1 Strategies Adopted by Leading Players

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Rolex SA

      2. 6.3.2 Prada SpA

      3. 6.3.3 Burberry Group PLC

      4. 6.3.4 Estée Lauder Companies Inc.

      5. 6.3.5 LVMH Moët Hennessy Louis Vuitton

      6. 6.3.6 Coty Inc.

      7. 6.3.7 Kering Group

      8. 6.3.8 Compagnie Financière Richemont SA

      9. 6.3.9 Breitling SA

      10. 6.3.10 Roberto Cavalli SpA

    4. *List Not Exhaustive

**Subject to Availability
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Frequently Asked Questions

The United Arab Emirates Luxury Goods Market market is studied from 2016 - 2027.

The United Arab Emirates Luxury Goods Market is growing at a CAGR of 5.2% over the next 5 years.

Rolex SA, Kering Group, Chanel SA, LVMH Moët Hennessy Louis Vuitton, Compagnie Financière Richemont S.A. are the major companies operating in United Arab Emirates Luxury Goods Market.

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