Luxury in the Gulf is undergoing a vibrant transformation, driven by a new generation of affluent, optimistic consumers. From skincare-obsessed Gen Z to wellness-focused Gen X, this diverse audience is fueling significant growth in personal luxury sales across the UAE and Saudi Arabia. As global markets falter, the Gulf’s luxury landscape is thriving, attracting international brands and reshaping consumption patterns.

Editor’s note from source: This story is excerpted from Jing Daily’s exclusive report Driving Revenue in the Middle East: Saudi Arabia and UAE.

Market Overview

Luxury brands are increasingly targeting the Gulf, with Zegna hosting its first show outside Italy in Dubai and The Frankie Shop entering Abu Dhabi. GCC personal luxury sales grew 6% in 2024, driven by the UAE and Saudi Arabia. Retail sales are projected to rise from $12.8 billion in 2024 to $15 billion by 2027, supported by an influx of wealthy expats and strong local spending. 

The UAE is expected to gain 9,800 new millionaires in 2025, while Saudi Arabia adds 2,400. Consumer optimism is high, with 97% of GCC buyers planning to maintain or increase luxury spending in early 2025, focusing on watches, jewelry, leather goods, and cars. The different consumer profiles can be divided into different categories:

Gen Z Beauty Enthusiasts

  • Women ages 13–28 drive the region’s beauty boom.
  • Monthly spend: $52 on skincare, $63 on makeup.
  • Influenced by social media (TikTok, YouTube, Snapchat).
  • Preferences: hydration, anti-aging, natural “skin-first” glow, moisture-locking ingredients.

Saudi Streetwear Community

  • Young consumers use streetwear for self-expression, often linked to events like Soundstorm festival.
  • Favor modest silhouettes, understated designs, and culturally inspired items.
  • Seasonal trends: Western streetwear in spring/summer; traditional wear in winter.

Emirati HNWI Fashion Enthusiasts

  • Globally trend-conscious, spending high budgets locally and abroad.
  • Average annual luxury spend: $58,000 in Dubai, $24,000 in Riyadh.
  • Preferences: heritage brands, exclusive collections, VIP services, and personalized experiences.

Gen X Wellness Devotees

  • Age 45+, focusing on longevity, health, and beauty maintenance.
  • Popular activities: wellness retreats, holistic skincare rituals (herbal infusions, body-smoke, scalp treatments).
  • Rising demand for menopause-focused solutions.

The Gulf luxury market is no longer defined solely by wealth but by optimism, experience-driven consumption, and a diverse set of lifestyles. Brands that understand the nuanced preferences of Gen Z, Emirati HNWIs, and wellness-oriented Gen X consumers are best positioned to succeed in this booming, multi-generational ecosystem.

Stay up to date on the latest luxury industry news: https://worldluxurychamber.com/insights-news         

SOURCES: JINGDAILY, JINGDAILY REPORT

Post Views: 33