Market Size of United Arab Emirates Luxury Goods Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.19 Billion |
| Market Size (2029) | USD 5.39 Billion |
| CAGR (2024 - 2029) | 5.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UAE Luxury Goods Market Analysis
The United Arab Emirates Luxury Goods Market size is estimated at USD 4.19 billion in 2024, and is expected to reach USD 5.39 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
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.
