The fashion industry in the Middle East region currently generates $89 in sales that are expected to post a compound annual growth rate of 7 percent during 2023-2027 according to Euromonitor International.
Factors favoring this optimism include shifts in consumer behaviors and government investment policies. A study reveals that around 50 percent of high earners in the two major Middle East countries –Saudi Arabia and the United Arab Emirates on average spend more than$12000 per year on fashion. These high earners are frequent travelers as well and spend around $2000 in countries outside the Middle East. The brands that fascinate consumers in these countries most are Zara, Nike, and Adidas.
The oil-rich Middle East countries saw strong growth in 2022 and have become attractive markets for the fashion industries. The consumers of this region have seen their incomes surge and have enormous spending power. The growth in the Gulf Cooperation Council is forecast at 3.7 percent which is more than double the average global forecast of 1.5 percent according to economists at Oxford Economics.
Male high-earning consumers in the two main Middle East prefer quality and elegance are among the most important characteristics. Though Nike, Adidas, and Zara are consumers’ favorites, other brands like Louis Vuitton, Chanel, and Dior also fascinate them. And of course, Gucci is also among the favorites.
As women are now entering the workforce in large numbers it has brought a societal change that has impacted fashion choices as well in the earlier male-dominated society. — such as more women entering the workforce — are impacting fashion choices. Accessories like handbags and jewelry have been relegated by larger interests’ shoes, beauty, and everyday apparel. Currently, UAE and KSA account for over 50 percent of the fashion industry sales in the Middle East.
