Europe is the global epicentre of fashion, blending cultural heritage, luxury craftsmanship, and design innovation. However, over the last plus two decades, China and Chinese consumers have dominated demand in the fashion and luxury segment.

Post Covid, this dominance has started to recede, as China grapples with slowing economic growth, falling property prices, changing demographics and falling income levels.

Leading European and other global brands are pivoting away from China; however, till recently, they were not able to find a direct substitute for Chinese consumer demand.

The US as a market remains a guessing game for these brands due to the dangling sword of tariffs and depleted savings. India has potential but it is probably too early to count it as a meaningful substitute, as GDP per capita is still below $3,000 (nominal, 2025 est).

This brings us to the question; can Europe along with the Middle East step in as the replacement buyer for these iconic fashion and luxury brands? The answer is maybe.

The Middle East is increasing in importance, as affluent, ultra-high net-worth consumers make the region their home. As anecdotal evidence, LVMH, Hermes and few other iconic brands have started to create special collections for the UAE and Saudi Arabia customers and may offer exclusive products tailored to the region.

Historically, higher oil prices, fashion and luxury have shown some positive correlation, as shown in the below chart from start date of 2019 to middle of 2022. This trend, in our view, may play out again in the future in the Middle East and therefore push up demand for fashion and luxury.

Europe is also potentially back in focus as a possible consumer market. Falling rates and the prospect of large fiscal stimulus could act as a positive trigger to rising disposable income, which in turn often leads to greater spending on fashion and luxury.

Other key fashion retail trends impacting the global luxury sector

1. Retailers pivoting to Europe amid rising US tariffs: Growing numbers of retailers and consumer brands are shifting their focus to Europe and other markets from the US, as they expect US tariffs to spark price hikes that will drive American consumer demand down. German clothing brand Hugo Boss has already rerouted China manufactured products away from the US and observed a notable slowdown in American consumer spending.

European online fashion retailer Zalando reported a rise in inquiries from global brands looking to expand within Europe, citing declining US demand due to expected price hikes. Adidas noted that while 20 per cent of its revenue comes from the US, it aims to regain momentum in other markets like Europe to compensate for potential losses. This geographic diversification reflects a broader industry pivot toward Europe.

2. Nearshoring gains momentum —Turkey and Tunisia lead Europe’s strategic shift: European apparel brands are increasingly shifting toward nearshoring strategies, with Turkey and Tunisia emerging as key sourcing hubs.

In 2023, Turkey’s share of textile and apparel exports to Europe rose to 6 per cent, surpassing Vietnam, as over 25 per cent of European brands viewed Turkey as a critical partner.

Major players like Inditex, H&M, Boohoo, and Asos have expanded operations in the country to ensure supply chain agility and regional responsiveness.

Simultaneously, Europe is strengthening ties with Tunisia through a landmark MoU signed in April 2025 between EURATEX and FTTH, which reinforces industrial cooperation and supply chain integration. With EUR2.5bn in textile exports to the EU in 2024, Tunisia is positioned as a strategic nearshoring partner supporting the EU’s goals of sustainability, resilience, and reduced dependency on distant markets.

3. Regulatory simplification and compliance realignment: The European Commission’s Omnibus simplification package, presented in February, introduces key changes to sustainability-related legislation impacting the textile value chain, including the CSRD (Corporate Sustainability Reporting Directive) and CS3D (Corporate Sustainability Due Diligence Directive).

The reforms aim to reduce compliance costs and streamline reporting requirements, particularly benefiting SMEs by limiting excessive data requests from large buyers. This shift reflects the EU’s broader effort to balance regulatory ambition with business practicality, offering an opportunity for well-positioned textile firms to gain competitive advantage through transparent, cost-effective ESG strategies.

4. Circularity compliance reshaping the EU textile industry: New EU regulations are accelerating a fundamental shift towards circular business models in the textile sector. With the Ecodesign for Sustainable Products Regulation (ESPR), Waste Framework Directive, and Waste Shipments Regulation now in force, companies must prepare for mandatory eco-design, supply chain traceability, and end-of-life accountability.

The writer is a senior advisor and the head of Equity Investments at Abbey Road Investment Group.

Dubai has announced an ambitious initiative to rank among the world’s top five cashless cities by 2033, aiming to unlock over $2bn in economic value by mandating digital payment acceptance across all businesses.

This vision aligns with a global shift toward digital economies, where cashless transactions are lauded for their speed, security, and transparency. A key pillar in this transformation is the development and implementation of Central Bank Digital Currencies (CBDCs), which are gaining traction worldwide as governments seek more accountable, efficient financial tools.

CBDCs: The next-gen tool for transparent payments

CBDCs—digital currencies issued and regulated by central banks—offer more than just convenience. Their advanced programmability makes them powerful tools for transparency and control in public finance.

A distinctive feature of CBDCs is their ability to ‘mark’ funds, enabling real-time tracking of transactions. This allows governments and institutions to provide instructions on how and where funds are used, ensuring they serve their intended purposes.

How the marking process works:

1. A state agency opens a CBDC account and initiates marking.
2. Non-cash money is converted into CBDC.
3. Funds are marked with usage conditions (recipient, limits, expiration, etc.).
4. Marked funds are transferred to recipients (e.g., contractors).
5. Funds can only be used according to preset conditions.
6. Multiple levels of marking can control subcontractor behavior.
7. Once all conditions are fulfilled, restrictions are lifted.

These measures make it really hard to misuse funds, withdraw them as cash, or repurpose them—offering unparalleled oversight.

Token-based architecture simplifies fund management

CBDC systems are often based on a token model, where each unit of currency is a programmable token rather than an account balance. These tokens carry built-in rules, such as expiration dates, spending categories, or recipient restrictions.

Benefits of token architecture:

• Streamlined transactions: Tokens with compatible conditions can be combined, eliminating the need for multiple accounts.
• Enhanced compliance: Conditions are enforced at the token level, ensuring automatic compliance.

This model is particularly effective for government contracts, where conditions on how funds can be spent are often complex and layered.

Real-world use cases for marked and traceable CBDCs

The most compelling applications of marked CBDCs are found in government-business-citizen interactions. These include:

• Transparent government procurement: Automating compliance and minimizing budget misuse.
• Targeted budget allocations: Funding for volunteer centers, sports, education, and cultural initiatives.
• Social assistance: Ensuring that government aid is used appropriately.
• Corporate benefits: Enabling controlled spending on transport, food, or fuel.

Recent pilot programs offer strong proof of concept. In July 2024, Kazakhstan used its Digital Tenge to mark funds for the Dostyk-Moyinty railway project. By September, it extended the model to automatically separate VAT in B2B transactions—improving tax collection and refund processes. Tech firm Axellect played a significant role in these implementations.

Regional momentum: Middle East embraces CBDCs

Nearly two-thirds of countries in the Middle East and Central Asia are exploring CBDCs.

Nations like Saudi Arabia, Bahrain and the UAE are moving from theory to practice, launching pilot projects to evaluate the viability of digital currencies in public finance and commerce.

Dubai’s cashless vision, supported by CBDCs, represents a step toward a more resilient and transparent financial future.

Concluding thoughts: Innovation with guardrails

CBDCs could revolutionise how governments manage money—provided proper regulatory, legal, and social frameworks are in place. Transparent communication and robust governance will be key to building public trust and ensuring widespread adoption.

As Dubai races toward a cashless future, its embrace of CBDCs could serve as a blueprint for digital transformation across the region—and the world.

Drake & Scull International (DSI), a long-established name in MEP contracting and infrastructure services, has announced its foray into commercial real estate development with the acquisition of a prime plot in Majan, Dubai. The move marks a strategic diversification of the company’s operations as it prepares to build a modern mixed-use commercial property from the ground up.

A strategic shift in business focus

This new venture signals a pivotal evolution in DSI’s business model, transitioning from its traditional role as a contractor to that of a full-fledged developer. The project reflects DSI’s intent to broaden its revenue base and establish a presence in Dubai’s vibrant real estate sector by owning and developing high-value assets.

“For years, DSI has been synonymous with engineering excellence and large-scale construction. Today, we take a transformative leap forward by entering the development space, a natural progression that allows us to leverage our deep industry knowledge while creating lasting assets,” said Muin El Saleh, CEO of DSI.

He continued: “This project is more than just a building; it is a testament to our resilience and ambition to evolve with the market. By diversifying into development, we are securing new revenue streams, strengthening our brand, and contributing to Dubai’s urban transformation.”

Commercial project details

DSI’s debut development will span over 156,000 square feet of built-up area, featuring more than 10,000 square feet of high-end retail space at ground level and over 67,000 square feet of office space spread across nine floors. The property will also offer a three-level podium parking facility with space for approximately 147 vehicles, ensuring practical access for tenants and visitors alike.

To ensure the highest design and construction standards, DSI has appointed Bel-Yoahah Architectural and Engineering Consultants as its design and supervision partner. Soil investigations and topographic surveys are complete, with construction approvals underway. Project completion is targeted for the end of 2026.

Long-term growth vision

“Our expertise in delivering complex projects gives us a unique advantage in this venture,” El Saleh added. “We understand the intricacies of construction, cost efficiency, and quality control, all of which are critical elements that will set our developments apart. This is just the beginning of a new strategic direction for DSI, and this project will be one of many developments we plan to undertake as part of the company’s transformation into a more diversified, forward-looking enterprise.”

Read: Drake & Scull completes restructuring milestones, eyes future projects

By managing the development in its entirety—from land acquisition to project delivery—DSI aims to maximise value creation and leverage its decades of experience in engineering and construction. The company’s entry into real estate development reflects both confidence in the UAE’s long-term economic prospects and its commitment to evolving with market opportunities.

With this first step, DSI is laying the groundwork for a broader presence in the property development sector, combining its strengths in execution with a vision to deliver next-generation commercial spaces in Dubai’s competitive real estate landscape.

Saudi Arabia has announced a major update to its work permit system for expatriate workers, classifying permits into three main skill categories: high-skill, skilled, and basic. The decision, issued by Minister of Human Resources and Social Development Ahmed Al Rajhi, is designed to enhance workforce efficiency and attract global talent.

Rise-Jobs on the rise: Saudi’s unemployment hits record low

The new classification system aims to align the skill levels of foreign workers with international standards, ensuring that expatriates meet job-specific qualifications. Authorities say the move will improve labor market operations, facilitate the transfer of global expertise, and support the Kingdom’s innovation-driven economy, a Saudi Press Agency report said.

According to the Ministry of Human Resources and Social Development (HRSD), the classification of existing work permits began on June 18 for current expatriate workers. For new arrivals, the updated permit system came into effect on July 1. The ministry has also published a comprehensive guide on its website outlining the full details of the initiative.

The ministry emphasised that the new system is part of a broader effort to build a more efficient, transparent, and attractive labor market in line with the country’s Vision 2030 and the National Transformation Program. By improving verification mechanisms and better managing skill distribution across the workforce, the government hopes to boost productivity and support sustainable economic growth.

Work permit reform aims to attract talent, boost innovation

The updated work permit structure reflects the government’s push to transform the labor market by bringing in high-skilled professionals and aligning expatriate job roles with actual qualifications. Officials say this shift will help modernise the economy and create an environment conducive to innovation and advanced business models.

The guidance manual released by the ministry provides employers and workers with a detailed overview of how the classification system operates and how qualifications will be evaluated.

Labor market sees strong growth in May

In a related development, the National Labor Observatory (NLO) released its latest report on the Saudi private labor market, providing key employment figures for May 2024.

The report showed continued growth in the number of private sector employees, with the total workforce reaching 11,370,796 by the end of May. Of this total, 2,358,227 were Saudi nationals—comprising 1,386,904 men and 971,323 women—while non-Saudi workers numbered 9,012,569, including 8,641,249 males and 371,320 females.

More Saudis entering the private sector

The labor report also highlighted a net gain in local employment, with 30,881 Saudi nationals joining the private sector for the first time in May. Officials consider this a positive trend in support of Saudisation efforts and long-term workforce development.

The NLO, established by Royal Decree in 2010, serves as the country’s primary source for labor market data. It regularly publishes labor indicators and monthly reports, including Overview of the Saudi Labor Market in the Private Sector, to inform policy and guide decision-making.

TikTok is building a new version of its app for users in the US ahead of a planned sale of the app to a group of investors, The Information reported on Sunday, citing unnamed sources.

This comes as US President Donald Trump said on Friday he will start talking to China on Monday or Tuesday about a possible TikTok deal.

Read-Rules in Oman: TikTok use, WhatsApp calls explained

He said that the US “pretty much” has a deal on the sale of the TikTok short-video app.

TikTok has developed a plan to launch the new app to US app stores on September 5, the report said.

Last month, Trump extended to September 17 a deadline for China-based ByteDance to divest the US assets of TikTok.

The report added that TikTok users will eventually have to download the new app to be able to continue using the service, although the existing app will work until March of next year, though the timeline could change.

TikTok did not immediately respond to a Reuters request for comment. Reuters could not immediately confirm the report.

A deal had been in the works earlier this year to spin off TikTok’s US operations into a new US-based firm, majority-owned and operated by US investors. That was put on hold after China indicated it would not approve it following Trump’s announcements of steep tariffs on Chinese goods.

Trump said the United States will probably have to get a deal approved by China.