Dubai tops the luxury market in the Middle East with around 30 percent share, according to a new report by consultancy firm Bain & Company. The emirate is set to benefit from the increased regional tourism and the growing demand of high-end goods.
According to the study on the global luxury market, Dubai accounts for 30 percent of the luxury goods in the region and around 60 percent of the market share within the United Arab Emirates. According to forecasts, the worldwide high-end consumption market expects huge growth of up to 50 percent faster than global GDP. By the end of this year only, it is believed to jump by 4 to 5 percent and by the end of the decade, the global sales will reach 250 billion Euros. Another highlight of the report is the altering consumers’ habits – new locations such as Dubai, South East Asia and Australia are becoming more attractive. As a top destination for luxury regional and international consumers, Dubai will see huge economic benefits from the increasing demand.
Bain & Company’ report also found that in the growing Middle Eastern market Dubai hardens its top position and remains the only city to attract foreign high-end consumers such as Indians, Africans and Russians. The traditional local consumption and the regional tourism, as well as the strength of perfumes/cosmetics and hard luxury are major drivers for the growth. New stores and the arrival of global brands are also key factors of the local market, but in order to be successful, they should ttake into account local consumer practices. According to a recent report by research market firm Nielsen, consumers from Africa and the Middle East are attracted to eco-friendly products and buy no matter the price. However, an essential factor when purchasing appears to be religion, with 71 percent admitting it is important.
In order to develop and make a good use of the potential of retail sector, Dubai announced last month its plans for Dubai Design District. Being in line with the goals of Tourism Vision 2020, the project is planned to answer the needs of the fashion industry and contribute to a further growth of the luxury market.
