According to a new report from Chalhoub Group, the luxury sector in the Gulf region is booming. It is growing twice as fast as the global market and has hit USD 12.5 billion. This surge is fuelled by strong economic factors and a tourism boom.

The report predicts more growth, thanks to sweeping economic reforms expected to boost consumer confidence. An impressive 93 percent of people surveyed feel financially secure, reflecting a bright outlook on the region’s economy.

In Saudi Arabia, confidence is particularly high, with 60 percent of people sensing a stronger economy and 70 percent of wealthier consumers noticing recent economic improvements.

Even with rising living costs and other global concerns, the general mood among GCC consumers remains upbeat, with many feeling hopeful and confident.

Both the UAE and Saudi Arabia are propelling this growth, with high demand for luxury fashion, watches, jewelry, and beauty products. Fashion leads the charge, valued at USD 5.2 billion, followed closely by watches at USD 5.1 billion.

The high-end fashion sector alone grew by 10 percent in 2023, far outpacing the global average. The first quarter of 2024 continued strong, with a 7 percent increase from last year. The UAE dominates the luxury fashion market, thanks to its thriving tourism and the influx of wealthy individuals.

The beauty sector is also thriving, with a 15 percent increase in 2023 and another 10 percent in early 2024. The UAE is at the forefront, particularly in prestige beauty products, closely followed by Saudi Arabia.