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GCC luxury market has defied global slowdown, says Chalhoub Group’s Jasmina Banda

Seven new malls featuring luxury brands are scheduled to open across the UAE and Saudi Arabia by 2027, and these developments will definitely help boost the GCC luxury sector further, says Banda

Neesha Salian
Neesha Salian

07 July, 2025

GCC luxury market has defied global slowdown, says Chalhoub Group’s Jasmina Banda
Image: Supplied

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The Gulf’s personal luxury market is thriving, bucking global trends with $12.8bn in sales and a 6 per cent year-on-year growth in 2024, according to Chalhoub Group’s landmark GCC Personal Luxury 2024: Unstoppable report.

In this interview, Jasmina Banda, chief strategy officer and president of Joint Ventures at Chalhoub Group, unpacks the key findings — from the booming beauty segment and rising digital luxury adoption to the growing influence of tourism and the emergence of next-gen luxury brands in the region.

Tell us about the key findings of the report; what intelligence did your team harness to develop this landmark report?

As we analyse the findings of our latest GCC Personal Luxury report, one of the most significant findings is that the luxury sector in our region continues to demonstrate resilience and adaptability despite global economic challenges.

With retail sales reaching $12.8bn and a growth trajectory that outpaces the international average, we see tremendous potential for brands to leverage this momentum.

This document consolidates data from Chalhoub Group, its partners, and estimates for both offline and online markets across six GCC countries: the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman.

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.

The GCC luxury market grew over 6 per cent in 2024, defying global declines. What key factor is driving this regional resilience and momentum?

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

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

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

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

Tourism resilience: Despite regional geopolitical challenges, an influx of affluent tourists continues to drive luxury sales.

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

Fashion remains the largest category, while beauty saw the fastest growth at over 12 per cent. What are the consumer behaviours and trends behind this shift?

In 2024, fashion remained the largest luxury category in the GCC, accounting for 43 per cent of total personal luxury spend, with a strong over 6 per cent year-on-year growth, mainly driven by ultra high-end brands and new store openings.

However, prestige beauty outpaced all categories, registering the fastest growth at over 12 per cent, with skincare emerging as the top-performing subcategory, growing over 17 per cent versus 2023. Fragrance continues to dominate the beauty mix, contributing 49 per cent of total beauty sales.

This shift reflects resilient consumer sentiment, with 97 per cent of GCC consumers intending to maintain or increase spending over the next three months. This is also driven by the ongoing retail expansion in the region — enabling greater access and visibility for luxury beauty brands.

Despite luxury e-commerce in the GCC accounting for only 13 per cent of sales, it grew over 13 per cent — far ahead of the global average. What’s enabling this digital acceleration, and where do you see the biggest opportunities online – either via AI, new products, new client segments?

The GCC region is experiencing a surge in luxury e-commerce, with online sales now accounting for 13 per cent of the market — still below the global average of 20 per cent, but showing strong growth potential. In 2024, the region’s online luxury channel grew by over 13 per cent, significantly outpacing the global market, which saw a decline of minus 4 to minus 1 per cent.

This digital acceleration is fuelled by several factors: high domestic demand, an influx of affluent international shoppers, strong adoption of digital and omnichannel experiences, and the rapid expansion of emerging categories such as skincare and Asian beauty.

With tourism rebounding and affluent visitors like Russians making up 16 per cent of luxury spend, how are tourist flows influencing purchasing patterns across categories — any specific categories to monitor?

Tourism is playing a critical role in shaping luxury consumption in the UAE. With international visitors — particularly affluent travellers from markets like Russia, China, and India — making up a significant share of luxury spend, we’re seeing strong demand across categories such as leather goods, watches, and jewellery.

Dubai offers a strong concentration of top brands from these categories and remains a renowned destination for luxury shopping.

The report notes a strong Q1 2025, helped by store openings and the Ramadan effect. How critical is physical retail — especially new mall developments — to sustaining growth in the region?

Physical retail remains absolutely critical. Despite the rise of e-commerce, in-store experiences continue to drive discovery, brand engagement, and high-value purchases — especially in luxury, where sensory experience and personalised service are essential.

In Q1 2025, fashion grew by over 11 per cent and beauty by over 23 per cent, with part of this growth driven by the opening of Solitaire Mall in February in Saudi Arabia.

Seven new malls featuring luxury brands are scheduled to open across the UAE and Saudi Arabia by 2027, and these developments will definitely help boost the GCC luxury sector further.

What opportunities do you see for newer-to-region luxury brands like Jacquemus and Zimmermann, and how are they tailoring their approach to the GCC market?

We’re seeing strong momentum from a new generation of luxury brands expanding in the region. The recent flagship openings of Jil Sander and Maison Margiela at Mall of the Emirates reflect growing demand for new and emerging brands in the GCC. This next phase will be driven by rising consumer expectations, generational shifts, and a stronger desire for emotional connection, storytelling, and curated experiences.

Looking ahead, new retail developments will give brands more opportunities to elevate service and experience to meet the evolving expectations of the GCC consumer.

With the market expected to reach $15 bn by 2027, what new or emerging categories (for example, skincare, wellness, athleisure, Asian beauty) do you expect to drive the next wave of growth?

The GCC personal luxury market is poised for continued growth, projected to reach $15bn by 2027, driven by:

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

  • New retail developments, particularly in Saudi Arabia and UAE (eight malls with luxury brands)

  • New generation of luxury brands entering and expanding in the region (for example, Jil Sander, Zimmermann, Jacquemus)

  • Development of new categories (for example, skincare, wellness, athleisure, Asian beauty)

  • E-commerce acceleration, particularly pure players

Kuwait launches new e-visa platform to boost travel, digital efficiency

The tourist visa allows a stay of up to 90 days and is designed for individuals wishing to explore Kuwait’s cultural and leisure offerings

Neesha Salian
Neesha Salian

06 July, 2025

Kuwait launches new e-visa platform to boost travel, digital efficiency
Image: Getty Images

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Kuwait has officially launched a new electronic visa (e-visa) system, aimed at simplifying and accelerating entry procedures for travelers, residents, and official visitors, as part of its broader digital transformation and tourism strategy.

The newly implemented platform, managed by the Ministry of Interior, supports four visa categories — tourist, family, business, and official — and is expected to reduce processing times and eliminate administrative hurdles.

The tourist visa allows a stay of up to 90 days and is designed for individuals wishing to explore Kuwait’s cultural and leisure offerings.

The family visa, valid for 30 days, enables Kuwaiti residents to invite relatives for short-term stays, facilitating family reunification.

The business visa, also valid for 30 days, is tailored to foreign professionals, entrepreneurs, and corporate representatives visiting for meetings, events, or commercial negotiations.

The official visa category is granted to diplomats and government delegations on formal missions, including international conferences and bilateral meetings, based on invitations from Kuwaiti authorities.

How to apply on the e-visa platform

The e-visa platform is accessible through the Ministry of Interior’s official portal.

The move aligns with Kuwait’s long-term strategy to enhance digital public services and reinforce its position as a key destination for tourism, investment, and diplomacy.

The new system complements other regional initiatives, including the anticipated GCC Grand Tours Visa, a multi-country permit that is expected to be launched soon.

Read: Kuwait moves ahead: Gulf rail link design contract signed

Dubai’s driverless future begins: RTA and Pony.ai to start trials in 2026

These vehicles feature cutting-edge artificial intelligence (AI) systems, along with a suite of advanced sensors, lidars, radars, and cameras

Gulf Business
Gulf Business

06 July, 2025

Dubai’s driverless future begins: RTA and Pony.ai to start trials in 2026
Image credit: Dubai Media Office/ Website

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Dubai’s Roads and Transport Authority (RTA) has signed a Memorandum of Understanding (MoU) with Pony.ai, a global leader in autonomous driving technologies, to launch pilot trials of self-driving vehicles in the emirate later this year. The trials mark a key step toward a commercial rollout of fully driverless services by 2026.

Read-Timeline revealed: Driverless Ubers to hit Dubai roads

Pony.ai, a Silicon Valley-based company with strong ties to China, recently unveiled the seventh generation of its autonomous vehicles, developed in collaboration with leading automakers including Toyota, GAC, and BAIC, a Dubai Media Office report said.

These vehicles feature cutting-edge artificial intelligence (AI) systems, along with a suite of advanced sensors, lidars, radars, and cameras, designed for precise navigation and safe operation in a range of road and weather conditions.

The company has also forged partnerships with major technology players such as Tencent and Alibaba to integrate its robotaxi services into widely used digital platforms like WeChat and Alipay.

The MoU was signed by Ahmed Hashim Bahrozyan, CEO of RTA’s Public Transport Agency, and Ann Shi, vice president of Strategy and Business Development at Pony.ai. The signing took place in the presence of Mattar Al Tayer, director general and chairman of the Board of Executive Directors at RTA, and Dr Leo Wang, CFO of Pony.ai, along with several senior officials from both parties.

Supporting Dubai’s smart mobility vision

Al Tayer praised the partnership as a major milestone in Dubai’s ambition to become a global leader in smart and sustainable mobility. “The signing of this MoU aligns with our ongoing efforts to adopt autonomous transport solutions and supports our Smart Self-Driving Transport Strategy,” he said.

Dubai’s strategy aims to make 25 per cent of all trips in the city autonomous by 2030. Al Tayer noted that such collaborations are crucial to achieving this target and reflect the emirate’s commitment to building strong ties with global technology leaders.

“The operation of autonomous taxis will enhance the integration of transport networks, support first and last-mile connectivity, and improve accessibility for all. This initiative will contribute to better road safety, greater convenience, and an improved quality of life for residents and visitors,” Al Tayer added.

He emphasised that autonomous mobility is no longer a futuristic concept, but an emerging reality. Governments, including Dubai’s, are working to create the regulatory and infrastructure framework needed to support the deployment of self-driving vehicles.

Expanding autonomous tech in the MENA region

Pony.ai’s Dr Leo Wang said the partnership represents a strategic expansion of the company’s global footprint. “This collaboration with Dubai RTA demonstrates our readiness to deploy Level 4 autonomous driving technology in key international markets,” Wang said. “By aligning our innovations with RTA’s forward-thinking vision, we are laying the foundation for smart transportation ecosystems across the MENA region.”

Pony.ai’s entry into the Dubai market follows successful deployments in other global cities and reflects increasing momentum in the adoption of autonomous transport technologies.

The pilot program in Dubai will help assess the integration of self-driving vehicles into the city’s mobility network and prepare for a commercial launch in 2026, supporting Dubai’s long-term vision for smart, efficient, and sustainable transport.

UAE stakes claim as global capital for digital nomads

Nearly 40 million people globally identify as digital nomads, a number projected to swell to one billion by 2035

Gulf Business
Gulf Business

05 July, 2025

UAE stakes claim as global capital for digital nomads
Image: Getty Images/ For illustrative purposes

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Once known primarily for its oil wealth and gleaming skyscrapers, the UAE is now carving out a new global identity as a magnet for digital nomads, according to a report published by the state news agency WAM.

Rising to second place globally in the 2025 VisaGuide Digital Nomad Visa Index, the UAE has become one of the world’s most attractive destinations for remote workers, trailing only Spain and leapfrogging previous contenders such as the Bahamas, Hungary, and Montenegro.

This quiet but steady ascent reflects a broader strategy by the UAE to diversify its economy and position itself at the crossroads of global talent, technology, and mobility.

Rather than merely responding to the rise of remote work, the Gulf nation has anticipated it, building infrastructure, rolling out targeted visa programmes, and marketing its lifestyle offerings to a global audience of mobile professionals.

UAE rates highly with digital nomads for various reasons

According to Immigrant Invest, the UAE earned high marks across a wide range of indicators including internet quality, tax benefits, healthcare, cost of living, and, crucially, unmatched levels of safety and stability.

Remote work, once a niche privilege, has now ballooned into a global economic force valued at around $800bn a year.

Nearly 40 million people globally identify as digital nomads, a number projected to swell to one billion by 2035. If it were a country, the global digital nomad community would rank 41st in population, according to the report.

Recognising the shift early, the UAE launched its one-year renewable Remote Work Visa in 2021, making it one of the first countries to tailor immigration policy to remote professionals.

The move was swiftly followed by Abu Dhabi’s Virtual Working Programme, reinforcing the country’s intent to turn digital nomadism from a pandemic-era trend into a permanent pillar of its knowledge economy.

Dubai and Abu Dhabi are now ranked first and fourth respectively among the world’s top cities for remote work by RemoteWork360.

While infrastructure and visa policies provide the backbone, lifestyle remains a key selling point. From the beaches of Ras Al Khaimah to the art districts of Sharjah, the UAE is promoting itself as more than just an office in the sun but a place to live, explore and thrive.

Read: Dubai trumps Lisbon as top destination for globetrotting executives, reveals report

ENOC appoints Hussain Sultan Lootah as acting CEO

Lootah has more than 30 years of leadership experience in the oil and gas sector

Gulf Business
Gulf Business

05 July, 2025

ENOC appoints Hussain Sultan Lootah as acting CEO
Image: Supplied

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The board of ENOC Group, the Dubai government-owned energy conglomerate, has appointed Hussain Sultan Ahmed Lootah as acting CEO, the company said in a statement last week.

Lootah succeeds Saif Humaid Al Falasi, who served as group CEO for the past decade, overseeing ENOC’s expansion and strategic growth initiatives.

“The appointment aligns with the group’s commitment to drive the future of energy and support Dubai’s ambitious plans of economic diversification and sustainable development,” ENOC said.

Lootah brings over three decades of experience to his new role at ENOC

Lootah, who brings over 30 years of leadership experience in the oil and gas sector, has held senior roles in finance, commercial strategy, project management, and human capital development. His previous work includes advancing Emiratisation efforts and strengthening local talent pipelines.

“ENOC Group is at the forefront of building a more sustainable energy landscape for the UAE and the wider region,” Lootah said. “I am honoured to step into this new role and look forward to working closely with ENOC’s talent and leaders to build on its legacy of innovation and excellence.”

ENOC, officially known as Emirates National Oil Company, operates across the energy value chain, from refining and storage to distribution and retail, and plays a central role in Dubai’s energy infrastructure and growth plans.

GE Aerospace’s Aziz Koleilat on the forces powering the Middle East’s aviation boom

Koleilat shares insights on GE Aerospace’s priorities as it marks its first year as an independent company and the region’s rising importance as a aviation hub

Neesha Salian
Neesha Salian

05 July, 2025

GE Aerospace’s Aziz Koleilat on the forces powering the Middle East’s aviation boom
Image: Supplied

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As the Middle East cements its role as a global aviation powerhouse, all eyes are on the region’s rapidly expanding fleets, world-class carriers, and multi-billion-dollar infrastructure investments. In this interview, Gulf Business speaks to Aziz Koleilat, president and CEO of METCIS at GE Aerospace, to unpack the momentum behind the region’s aviation ascent.

From national strategies shaping air travel to the emergence of the Middle East as a future MRO hub, Koleilat shares insights on what’s driving growth, the challenges ahead, and GE Aerospace’s priorities as it marks its first year as an independent company.

The Middle East has transformed into a major aviation hub. From your vantage point at GE Aerospace, what are the key factors driving this remarkable growth, and how sustainable is this trajectory?

The Middle East’s aviation story is one of incredible transformation. We’ve seen the region evolve from a mere stopover to a global aviation hub, with carriers competing to offer comprehensive networks and top-tier service. This sustained expansion is evident in the long-term growth figures, with the region achieving an average annual growth rate of 6.8 per cent, outpacing the global average since 2000.

Looking ahead, the Middle East’s commercial aviation market is poised for continued growth, fueled by increasing demand, the emergence of budget airlines, and substantial aircraft orders.

The region’s fleet is projected to expand at an annual rate of 5.1 per cent between 2025–2035, driven by the adoption of narrow-body aircraft. Long-term success, however, hinges on embracing more efficient practices and fostering technological innovation.

Qatar, Saudi Arabia and the UAE are leading forces in the region’s aviation sector. Can you elaborate on their distinct approaches and how they are shaping the future of air travel in the Middle East?

Saudi Arabia, Qatar and the UAE are demonstrating a strong appetite for growth, but with distinct strategies. In Qatar, dramatic growth has been driven by Qatar Airways, as it has developed Doha into a global connecting point. In terms of available seat kilometres, Qatar Airways has advanced from 17th to 6th largest globally in 2024. Our recent agreement with Qatar Airways was the largest in GE Aerospace history.

Saudi Arabia’s Vision 2030 offers a compelling example of rapid growth in demand, with its strong emphasis on economic diversification through sectors such as tourism. This ambition is being realised through significant investments in infrastructure and the development of new tourism destinations.

And in the UAE, a sustained model of aviation-driven growth continues to be fueled by a thriving tourism sector and the country’s role as a strategic global connector. A recent report by the International Air Transport Association (IATA) highlights the UAE’s aviation sector contributed $92bn or 18.2 per cent to the nation’s total GDP in 2023. This impact extends beyond direct employment, with the sector supporting 991,500 jobs across the wider supply chain, employee spending, and tourism activities.

All three countries recognise that as the region prepares to host world-class events and welcomes an influx of tourists, the reliability and efficiency of its aviation infrastructure will be critical in reaching national development goals.

The Middle East is poised to be an important global MRO market. What are the key drivers behind this trend, and what challenges and opportunities does it present for the region’s aviation industry?

The Middle East is indeed positioned well for the global maintenance, repair, and overhaul (MRO) market, driven by a substantial order book. The ten largest airlines in the Middle East already have a combined order book of 795 aircraft to be delivered by the end of the decade, one of the largest regional order books. This presents both opportunities and challenges. It requires investment in skilled talent, advanced technologies, and efficient processes to meet the growing demand for MRO services.

Looking beyond the immediate growth, what are the critical elements that will define the long-term success and sustainability of the Middle East’s aviation sector?

The future of aviation in the Middle East will be shaped by the effective use of digital solutions and the cultivation of a skilled workforce. Advanced data analytics can optimize flight operations, improve maintenance schedules, and enhance the passenger experience.

Investing in training programs and attracting top talent will be crucial for ensuring that the region has the expertise needed to implement these technologies and drive innovation. A focus on STEM education and partnerships with universities and technical colleges will be essential for building a pipeline of skilled aviation professionals.

As GE Aerospace commemorates its first year as an independent company, what is your message to the Middle East’s aviation community, and what are your priorities for the region in the coming years?

As GE Aerospace commemorates its first year as an independent company, we reaffirm our commitment to partnering with the Middle East’s aviation community to foster innovation and build a sustainable future for the industry.

We recognise the critical link between reliable infrastructure, efficient operations, and a seamless passenger experience. By understanding the unique challenges and opportunities in the region, we can collectively ensure its continued global success. We are committed to providing the technology and expertise needed to support ambitious national goals.

Read: Middle East: GE Aerospace invests $10m to enhance MRO capabilities

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