Dubai has emerged as a surprising exception among luxury goods purchasers, outshining cities like London, Paris, New York, and Singapore, according to the recent “Global Economic Insights” report from Visa.
In contrast, the percentage of cardholders buying luxury items has decreased in major cities like London, Paris, New York, and Singapore compared to last year. This decline is attributed to several factors, including economic challenges, trade disruptions, and currency fluctuations, all of which have negatively impacted consumer confidence.
However, Dubai has defied this global trend, maintaining a strong demand for luxury goods. Approximately one in nine residents in the city opts to purchase a luxury item every three months, significantly higher than in other major urban centers.
This trend is largely due to a substantial number of affluent households, with nearly 37% of the population earning over $150,000 annually, thus supporting the sustained desire for luxury products in the city.
The report also highlighted a more cautious approach among luxury shoppers, marking the first time since the global financial crisis that consumers have reduced their luxury purchases in 2025 after years of consistent growth. Luxury shopping is no longer exclusively for the ultra-wealthy.
The elite segment, representing the top 1% of spenders, has seen expanding luxury appeal among broader societal segments, including the affluent (top 5%), newcomers to wealth (top 10%), and the upper-middle class (top 20%). For many in the middle class, luxury items have become a symbol of personal success and distinction.
The analysis covered tangible luxury item purchases, such as designer handbags, watches, and jewelry, from the leading twenty global brands in the luxury retail sector.