Dubai commands around 30 per cent of the luxury goods market in the region and an overwhelming 60 per cent of the market share in the UAE, according to a new study.
A report by Bain & Company on the worldwide luxury market, shows the Middle East is growing at a steady pace in terms of its luxury goods consumption.
The thriving market in the region is due to the traditional affinity towards luxury and an increasing appetite of both younger generation and mature consumers for top global brands.
The report found that the Dubai Mall alone accounts for half of Dubai’s luxury goods market.
The increasing ‘intra-region’ tourism and the emirate’s ability to attract foreign luxury consumers – mainly Russians, Indians and Africans – are also key drivers, the report said. The arrival of new stores in the emirate has also helped fuel growth.
Revenues from the global luxury goods market is estimated to grow 50 per cent faster than global GDP, with an expectation of four to five per cent growth in 2013 and five to six per cent annual average through 2015.
The changing consumption habits of the tourists and rise of new destinations like Dubai, southeast Asia and Australia are the key drivers.
Realising the potential that the retail sector offers, Dubai had announced plans last month to launch the new Dubai Design District, which aims to cater to the needs of the fashion industry and is in line with the objectives of the Tourism Vision 2020.