• business

    Gcc personal luxury market defies global trends with +6% growth, reaching usd 12.8 billion in 2024

    Wed, Jun, 11, 2025

Dubai, UAE – May 2025

Chalhoub Group publishes the GCC Personal Luxury 2024: Unstoppable report, unveiling a comprehensive snapshot of the region's personal luxury market. With an impressive USD 12.8 billion in retail sales in 2024 and an unstoppable year-on-year growth rate of +6%, the GCC continues to demonstrate resilience and momentum, in contrast to the global luxury landscape, which has faced an estimated decline of -2%. This report highlights the region’s robust performance and signals a promising future for luxury retail in the Gulf Cooperation Council (GCC).

This report also highlights a strong start to the first quarter of 2025, with luxury fashion up +11% and prestige beauty up +23% versus last year, driven by strong consumer demand, new malls and store openings, and a favourable Ramadan calendar effect.

Jasmina Banda, Chief Strategy Officer and President of Joint Ventures at Chalhoub Group said, “As we analyse the findings of our latest GCC Personal Luxury report, it is evident that the luxury sector in our region continues to demonstrate resilience and adaptability despite global economic challenges. With retail sales reaching USD 12.8 billion and a growth trajectory that outpaces the international average, we see tremendous potential for brands to leverage this momentum. New retail developments are also creating opportunities for brands to elevate the in-store experience and customer service, in order to meet the rising expectations of the GCC consumer.”

 


Drivers Behind the Growth

Several key factors are propelling the upward trajectory of luxury in the GCC:

1.      Favourable economic conditions: Strong government initiatives, particularly in Saudi Arabia and the UAE, foster a conducive environment for luxury spending.

2.     Retail expansion: The luxury retail landscape is evolving with new store openings and high-end mall developments enhancing consumer access to luxury brands.

3.     Consumer spending habits:  Resilient consumer confidence and rising disposable incomes drive robust demand for premium goods.

4.    Tourism resilience:  Despite regional geopolitical challenges, an influx of affluent tourists continues to drive luxury sales with Russian tourists accounting for the highest share of total spending at 16%

5.     E-commerce growth:  The transition towards online shopping is accelerating, with the e-commerce luxury segment outpacing global averages as consumer behaviours evolve.

Divergent Trends Across Categories

A detailed analysis by Chalhoub Group’s Intelligence team reveals a dynamic and nuanced luxury landscape across the GCC in 2024. Luxury fashion was the driving force of growth, representing 43% of the total market and growing by +6%. 

Beauty witnessed the fastest growth in the GCC with a +12% increase versus last year. Within the beauty category, fragrance held the largest weight in the category at 49%, while skincare had the highest growth at +17% vs 2023

Watches & Jewellery grew +3% vs last year, primarily driven by a surge in the jewellery category (up +7% year over year)

Watches remained flat in the GCC (0% YoY), mirroring the global trend, where they experienced the sharpest decline among personal luxury categories (-7% to -5% YoY)

The GCC region is witnessing a boom in e-commerce, with online sales capturing 13% of the market, lower than the global average of 20%. This indicates a significant opportunity for growth as digital shopping continues to gain traction among consumers. In fact, the GCC's online channel has experienced a substantial increase, growing +13% at a rate much faster than the global average, which faced a decline of -4% to -1%.

 

 

 

 

The Future of Luxury in the GCC

Looking ahead, the GCC personal luxury market is poised for continued growth, projected to reach USD 15 billion by 2027, driven by:

1.      Robust local spending along with continued inflow of tourists and wealthy expats 

2.     New retail developments, particularly in KSA and UAE (eight malls with luxury brands) 

3.     New generation of luxury brands entering and expanding in the region (e.g. Jil Sander, Zimmermann, Jacquemus)

4.    Development of new categories (e.g. skincare, wellness, athleisure, Asian beauty)

5.     E-commerce acceleration, particularly pure players

While certain risks remain, including fluctuating energy prices and the potential negative impact of US tariffs, GCC consumers remain optimistic and demonstrate a strong willingness to spend compared to global benchmarks.

Report Development and Insights 

The insights presented in this report are the result of extensive research by Chalhoub Group’s Intelligence team led by Jasmina Banda, Chief Strategy Officer and President of Joint Ventures, and Mo Shadman, Director of Intelligence. This document consolidates data from Chalhoub Group, its partners, and estimates for both offline and online markets across six GCC countries: the United Arab Emirates (UAE), Kingdom of Saudi Arabia (KSA), Kuwait (KWT), Qatar (QAT), Bahrain (BHR), and Oman (OMN). 

Within its scope, the report analyses luxury trends across four categories: 77 high-end fashion brands, over 1,000 prestige beauty brands and retailers, 30 luxury watch brands, and 16 fine jewellery brands. Consumer insights are grounded in proprietary Chalhoub Group research studies conducted between 2023 and 2025 across various GCC markets.

 

 

 

 

 

 

 

 

 

ABOUT CHALHOUB GROUP:

 

INSPIRE | EXHILARATE | DELIGHT

 

For over seven decades, Chalhoub Group has been a partner and creator of luxury experiences in the Middle East. In its pursuit to excel as a hybrid luxury retailer, the Group has curated a portfolio of over 10 owned brands and strengthened its distribution and marketing expertise for over 400 international names across luxury fashion, beauty, jewellery, watches, eyewear, and art de vivre categories.

Every step at Chalhoub Group is taken to build a future where luxury dreams become reality — bridging cultures and crafting memorable experiences for our consumers. Be it by constantly reinventing itself, committing to innovation, or embracing new technologies, the Group is shaping the future of luxury retail. It delivers seamless omnichannel experiences across more than 950 stores, online platforms, and mobile apps. Driving this innovation journey is The Greenhouse — the Group’s innovation hub, incubator, and accelerator for startups and emerging businesses, regionally and globally.

Chalhoub Group fosters a people-at-heart culture rooted in diversity, equity, and inclusion, and a workplace catalysed by forward thinking and future-proofing. Today, it brings together over 16,000 talented professionals across eight countries in the Middle East, with a presence in LATAM. Their collective efforts have earned the Group the Great Place to Work® certification in several markets.

Sustainability is at the core of the Group’s strategy, guided by a clear commitment to people, partners, and the planet. Chalhoub Group is proud to be a member of the United Nations Global Compact, a signatory of the Women’s Empowerment Principles, and to have pledged to reach Net Zero by 2040.

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