A recent report from the international platform “Research and Markets” highlights significant growth in the luxury goods market across the Gulf Cooperation Council (GCC) countries, with Dubai leading this surge due to its major shopping centers and renowned brand presence.
The report forecasts that the luxury goods market in GCC nations will leap from $16.53 billion in 2026 to $26.66 billion by 2031, achieving a compound annual growth rate (CAGR) of 10.03%.
Remarkable Expansion
This extraordinary expansion is fueled by substantial investments in retail infrastructure and economic diversification initiatives in the region, with major cities like Dubai at the forefront thanks to the development of large shopping centers and top-tier brands. The acceleration of e-commerce has also enhanced consumer access to luxury items.
Analysis indicates that global brands are increasingly aligning their products with local cultural preferences, a strategy that has effectively boosted demand. Additionally, shopping driven by tourism continues to stoke the appetite for high-end fashion, jewelry, and accessories.
Sustained investments from European luxury brands are solidifying market growth prospects, especially amid rising demand for luxury men’s goods and watches. The digital evolution of distribution channels has transformed the landscape, with online platforms emerging as vital sales points despite some market fragmentation, allowing local distributors and specialized brands to seize growth opportunities through tailored strategies and multi-channel sales approaches to effectively reach consumer bases.
In terms of consumer trends, affluent shoppers in the Gulf are increasingly gravitating towards exclusive and limited-edition products, prompting luxury brands to introduce collections inspired by the region.
The UAE
The United Arab Emirates has particularly stood out in this context, experiencing a notable influx of wealthy individuals, with 6,700 high-net-worth individuals projected to arrive in 2024, according to the World Economic Forum. This trend underscores the expansion of the consumer base for these products.
As part of this movement, the Dubai Watch Week 2023 saw a significant attendance increase, exceeding 23,000 visitors, reflecting a 42% rise compared to previous years. This surge highlights widespread interest in exclusive watch launches tailored to local tastes. Additionally, the Aldo Artist series launched by Apparel Group in 2025 in collaboration with global artists exemplifies the blending of cultural storytelling with luxury to enhance exclusivity and profitability.
Government-supported heritage festivals play a crucial role in promoting luxury spending in the region by integrating culture, tourism, and high-end retail.
Watches
When analyzing sector performance, the fashion and apparel segment dominated the GCC luxury goods market in 2025, accounting for a 35.31% share, driven by the cultural appeal of traditional attire such as abayas and kanduras, along with high-end event wear.
Conversely, the watch sector emerged as the fastest-growing category, expected to grow at a CAGR of 10.52% until 2031, fueled by high-net-worth individuals’ demand for exclusive designs and superior craftsmanship, significantly supported by events like Dubai Watch Week.