Middle East provides chance to fashion brands

At a time when consumers are stressed due to high inflation in most parts of the world but the consumers in the Middle East particularly the oil-rich countries are not that much impacted. This encourages fashion brands to explore this market.

It is a fact that globally the rich are only getting richer and this is substantiated by the report on the global luxury goods segment which scored a market value of $262.66 Billion in 2021. It is expected to grow at a CAGR of 5.

63 percent during the forecast period of 2023-2028 according to researchandmarkets.com.

The beauty of the Middle-East market is its customer who is well-aware, world traveled and understands the concept of luxury and in some ways has redefined it. The size of the UAE’s luxury market reached $3.5 billion in 2021, according to data released by ResearchandMarkets.com.

The Middle East and African luxury goods market is projected to record a compound annual growth rate (CAGR) of 8.5 percent during the next five years and this is the reason why several big brands are opening their stores.

Dubai is a popular shopping destination, moreover, it is a popular wedding destination too.

Most importantly, the Arab world understands luxury like no one else. The Middle East is also growing as an interesting tourist destination and the UAE has blended various cultures brilliantly, making life easy for its residents.



The king of couture was the first to predict this growth and launched Sabyasachi Jewellery at Bayt Damas on August 3, 2021. The Dubai jewellery store has its most luxurious offerings. Dubai plays a hub of world-class luxury and it has taken the spotlight as a retail and luxury hub, from world-famous fashion mavens to cars or real estate. The market in the UAE incorporates a slew of extremely aware and knowledgeable consumers, that are both willing and able to enjoy the luxury of luxury.

Global couturier Rahul Mishra, who is now a veteran at the Paris Fashion Week, is opening his store in the Middle East soon. His product range will include couture womenswear, men’s bespoke festive wear, ready-to-wear (RTW) womenswear, RTW menswear, bags, accessories, and footwear.

As exclusive brands are slowly understanding customers are now global, not local, their buyers can live multiple lives through fashion — experiencing various silhouettes with ease. The quiet revolutionist, Anita Dongre, has a strong head for business. This has led to her brand’s exponential growth. Expanding to the Middle East has been a long-cherished dream of Anita, and she is thrilled to bring her brand to another luxury fashion capital of the world. “The store is an extension of the identity and philosophy of the brand with interiors designed to reflect my Rajasthani roots.

Some brands house specially curated versatile, modern classics for the Emirati woman. With silhouettes ranging from beautiful coordinated sets and ready-to-wear dresses to classic evening gowns, kaftans, and handcrafted silver jewelry.

Dubai has been coming into its own as the next fashion capital and the Middle East is culturally quite close to us as a market,” she reiterates.

There is a rush of Indian designers who are opening in the Middle East and the man who has dressed a bevy of Bollywood beauties, Manish Malhotra, is set to open in the Dubai mall this July-August too. Global brand Gucci has 500 employees in the Middle East and Africa as well as 29 stores. According to a Business of Fashion report titled “Fashion in the Middle East—Optimism and Transformation”, “the region’s $89 billion fashion industry is set for unprecedented change in the upcoming years.

Thanks to a mix of factors, from shifting consumer behaviors to new government investment policies.” It further states, the region’s fashion market is projected to record a CAGR of approximately 7 percent between this year and 2027, according to Euromonitor International.

A BoF Insights survey in the UAE and Saudi Arabia found that as much as 50 percent of high earners spend more than $1,000 on average a month on fashion. The Middle East is expected “to become one of the fastest growing markets for luxury in 2023”, according to Barclays Plc analysts. Owners of brands such as Louis Vuitton and Cartier will see huge returns as “the market will account for 8 percent of luxury goods sales by 2030”. Dubai’s GDP rose an annual 4.6 percent during the first nine months of 2022 and had 13 million tourists till November last year.

Many other factors have contributed to this — the Qatar Grand Prix, the AFC Asian Cup, and the 2022 Fifa World Cup. The Middle East and Africa have 17 countries and some of the richest nations — Qatar and UAE.

China, a luxury hub, has declined due to Covid and lockdowns, elevating the Middle East’s position as a go-to luxury shopping destination.