The latest report published by IMARC Group, titled “UAE Luxury Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, estimates that the UAE luxury market reached a value of US$ 10.4 Billion in 2018. Luxury goods are unessential products which are purchased according to the desire of consumers mostly belonging to the higher income groups. These products are considered to have better quality, symbolism, aesthetics and rarity as compared to necessity goods. Luxury buying is an important trend in the United Arab Emirates (UAE), particularly within the Emirati society, as owning these products is viewed a part of the consumers’ personality, social image, and position. Currently, the UAE is one of the largest luxury goods market in the Middle East as the presence of international luxury brands in major cities, such as Dubai and Abu Dhabi, has helped in promoting the country as a major shopping destination across the globe.
UAE Luxury Market Trends:
At present, the growth of the luxury goods market in the UAE can be attributed to the booming e-commerce and tourism sectors which have presented various international luxury brands with ample growth opportunities in the country. Apart from this, the high disposable incomes of the consumers have also helped in sustaining the sales of luxury goods. Moreover, rising urbanization has led to an increase in the number of shopping centers and malls which play a vital role in shaping the shopping habits of local consumers. However, the rising rent and educational costs in the country coupled with the introduction of Value Added Tax (VAT) can dampen the growth of the market in the upcoming years. Looking forward, the UAE luxury goods market is expected to reach a value of US$ 15.9 Billion by 2024, registering a CAGR of 7.1% during 2019-2024.
UAE Luxury Market Summary:
- The luxury market in the UAE is segmented on the basis of different types of luxury goods and services which mainly include travel and hospitality, luxury cars, personal luxury goods, and food and drinks. Amongst these, travel and hospitality represent the most popular segment.
- Based on gender, the market has been segregated into male and female. Currently, males account for the largest share of the UAE luxury goods market.
- The market has also been analyzed on the basis of distribution channels. Presently, there are numerous means through which the consumers can source the desired type of luxury product including monobrand stores, multibrand stores and online retail channels.
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