The GCC luxury market stands at a transformative crossroads. With one of the world’s youngest and wealthiest populations, it’s a region where global trends meet deeply ingrained cultural values.

According to CXG’s recent report, “Luxury Trends in the GCC: Embracing Opportunities and Navigating Challenges”, this market offers significant growth potential for brands that prioritise personalisation, adapt to local cultural nuances, and commit to sustainability.

However, to succeed, brands must approach the market with an authentic and well-informed strategy.

Localisation: The key to emotional resonance

Luxury in the GCC is no longer just about status; it’s about storytelling that connects to a culture that is deeply proud of its heritage. The CXG report highlights how global luxury brands have recognised the importance of aligning their offerings with local traditions and sensibilities.

Take, for instance, Dior’s Ramadan capsule collection, Dior Or, or Chanel’s Dubai Funfair, which celebrated a classic watch model. These events exemplify how global brands are weaving their identity into the cultural fabric of the region. Dolce & Gabbana’s fashion show at AlUla further demonstrates how aligning with iconic GCC locations can elevate a brand’s relevance.

Such strategies are necessary because GCC consumers, particularly affluent millennials and Gen Zs, are discerning and demand authenticity.

Localisation, as a trend, is also reflected in the rise of homegrown brands like L’Afshar and The Giving Movement, which merge cultural pride with innovative and stylish design. Global brands must adapt their collections, marketing, and even store designs to reflect regional values and create a stronger emotional connection.

Personalisation: Building bespoke experiences, meaningful relationships

The luxury customer experience in the GCC is defined by relationship-driven interactions. The report noted that 39 per cent of customers in the region strongly value personalised connections with advisors, but there’s significant room for improvement in delivering this consistently. One of the most crucial metrics for luxury brands in the GCC— “building a connection”—is 16 percentage points lower than global benchmarks.

Clients in the GCC prefer a bespoke experience, so building the relationship is a vital part of the sales process.

Clienteling, supported by CRM technology, is becoming a critical tool for brands to deepen these relationships.

Advisors who can anticipate their clients’ preferences, remember key details about their lives, build personal relationships, and even celebrate milestones create the kind of loyalty that turns customers into brand advocates.

In the GCC, the role of the advisor goes beyond selling. It’s about trust, aspiration, and curating an exclusive journey. These relationships are so deep-rooted, that it’s not uncommon for clients to follow their advisors when they change brands — highlighting how paramount it is for brands to build strong teams within the region.

Sustainability: An untapped opportunity

While the GCC may not yet lead with sustainability, Research shows that the region is ripe for change. Initiatives like Saudi Arabia’s Vision 2030 and Dubai’s hosting of COP28 reflect increasing governmental and societal attention on environmental responsibility. Yet, the report reveals that only 5-11 per cent of luxury interactions in the region currently incorporate sustainability messaging, depending on the category.

Brands that integrate sustainability into their storytelling and operations can tap into the aspirations of younger consumers, who increasingly value ethical consumption.

A standout example is Golden Goose’s Forward concept store in Dubai’s Mall of the Emirates, which focuses on repair, reuse, and personalisation — turning sustainability into an engaging luxury experience.

For local brands, sustainability also aligns with heritage. Artisanal production methods and traditional craftsmanship, rooted in respect for nature and cultural history, offer authentic narratives that resonate with GCC consumers.

Why the GCC matters: Strategic opportunities for global luxury brands

The GCC is poised to become a global leader in luxury growth. The CXG report projects the region’s luxury market to grow at an impressive 8.5 per cent CAGR, driven by rising disposable incomes, significant investment in retail infrastructure, and the return of repatriated spending post-Covid.

Global brands looking to succeed in this thriving market must address key opportunities:

1. Crafting tailored experiences: Capsule collections and localised marketing campaigns that celebrate GCC traditions — such as Ramadan and National Days — demonstrate respect for cultural values while enhancing brand relevance.
2. Technology-driven personalisation: Digital tools like augmented reality, AI-driven recommendations, and omnichannel integration ensure that brands can meet the expectations of tech-savvy GCC customers.
3. Sustainability messaging: Aligning with governmental initiatives and embedding eco-conscious values into brand narratives can set brands apart in a market that increasingly values ethical luxury.
4. Exclusive experiential luxury: Events such as Van Cleef & Arpels’ exhibition in Riyadh exemplify how brands can create immersive experiences that captivate luxury clients and foster long-term loyalty.
5. Empowering local talent: Collaborations with local designers, influencers, and brands are not only strategic but also reflect a deep understanding of the region’s pride in its cultural identity.

Looking ahead: A market with infinite possibility

The GCC has already shown its prowess as an economic powerhouse, and it is now demonstrating itself as a region that is redefining what luxury means. It’s a market that values tradition as much as innovation and expects brands to deliver both with precision.

Success in the GCC here demands more than business as usual — it requires a commitment to understanding and honouring the region’s ethos.

Global brands that embrace this unique opportunity — by delivering culturally resonant, personalised, and sustainability-driven experiences — are poised to thrive in one of the world’s most dynamic luxury markets.

The writer is the CEO of CXG, a leading data-driven consulting and solutions firm.

Dubai’s Roads and Transport Authority (RTA) has commenced work on the next-generation traffic signal control system called UTC-UX Fusion.

According to a Dubai Media Office report, the new system incorporates artificial intelligence (AI), predictive analytics, and digital twin technologies.

Read-Dubai’s RTA unveils ‘fourth-generation’ traditional abras

The upgraded system will be rolled out across all major intersections in Dubai, with project completion anticipated by the first half of 2026.

How does the UTC-UX Fusion system work?

The UTC-UX Fusion system dynamically adapts to real-time traffic changes by analysing data and making intelligent decisions to optimise signal timings.

It also supports future technologies and initiatives, such as Cooperative Intelligent Transport Systems (C-ITS/V2X), which facilitate communication between smart vehicles and traffic signals to enhance traffic flow efficiency.

Also read: RTA unveils RAILBUS autonomous transport system

This is expected to play a key role in reducing the duration of commutes, improving traffic fluidity, and enhancing the overall mobility experience across Dubai.

Advantages of the system

The upgraded traffic signal system offers several advanced features, including predictive traffic analysis to dynamically optimise signal timings in anticipation of expected traffic movements, thereby enhancing overall traffic network efficiency.

It also incorporates digital twin technology, allowing signal adjustments to be simulated and their impact assessed before actual implementation, while also enabling priority-based traffic management.

Additionally, the system leverages data from future road sensors to further refine signal timings with greater efficiency.

“This project aligns with RTA’s vision as The World Leader in Seamless and Sustainable Mobility by improving journey time and reducing traffic congestion at intersections by 10% to 20%. It aims to enhance the travel experience for all road users, including motorists, public transport passengers, pedestrians, and cyclists, while also prioritising emergency vehicles and public transport,” Hussain Al Banna, CEO of the Traffic and Roads Agency at RTA, said.

Abu Dhabi’s Etihad Airways aims to announce the launch of a $1bn initial public offering this week, two sources told Reuters, in what would be the first IPO of a major Gulf airline in nearly two decades.

Read-Etihad Airways reports Dhs1.7bn in net profit in 2024

The airline plans to offer 20 per cent of the business by selling new shares to fund its growth ambitions, said the sources, declining to be named as the matter was not public.

Etihad, which is owned by Abu Dhabi’s $225bn wealth fund ADQ, did not immediately respond to a request for comment. ADQ declined to comment.

Read-Etihad Airways flies into 2025 with 1.7m travellers in January

The IPO comprises 2.7 billion in primary shares, the sources said, in which proceeds go back to the company rather than the main shareholder.

Last week, Etihad Airways reported a net profit that more than tripled last year to $476m. Its earnings were boosted by $5.7bn in passenger revenue and $1.1bn in cargo revenue due to ‘significant operational efficiency improvements’.

Dubai Taxi Company (DTC) has signed a five-year strategic partnership with Dubai Airports to become the exclusive provider of taxi services at Dubai International (DXB) and Dubai World Central – Al Maktoum International (DWC).

The agreement reinforces DTC’s position as the leading provider of premium mobility services in Dubai.

The partnership underscores a long-standing relationship between DTC and Dubai Airports to accommodate the growing number of passengers.

In 2024, Dubai Airports welcomed 93 million guests across DXB and DWC, resulting in six million limousine and taxi trips.

Annual trips are projected to exceed eight million by 2029, with revenues expected to reach Dhs2.5bn over the five years.

DTC’s collaboration with Dubai Airports began in 1997 with a fleet of just 100 taxis.

Over the years, the company has grown into Dubai’s largest taxi operator.

Currently, it operates approximately 900 airport taxis, including 700 dedicated airport taxis, pink taxis catering to women and families, and accessible vehicles for People of Determination. The fleet also includes around 500 premium limousines.

Read: Dubai Taxi Company CEO Mansoor Alfalasi shares plans, milestones

Dubai Taxi Company: Smart transportation services on offer

Dubai Taxi Company’s taxi and limousine services at Dubai Airports are equipped with smart dispatch systems and instant booking technology through user-friendly apps, enabling cashless transactions. The fleet is monitored by DTC’s control centre to ensure safe and efficient transportation.

“The agreement demonstrates the strength of our relationship with Dubai Airports, which began in 1997. As the exclusive provider of taxi services at Dubai’s airports for more than two decades, we are committed to showcasing Dubai at its best to all passengers,” said Alfalasi.

“With a team of well-trained drivers backed by sophisticated technology, DTC is committed to enhancing its operational capacity to align with the rapid growth and development at Dubai Airports, ensuring the continued delivery of world-class transportation services,” he added.

In 2024, DTC doubled its dedicated airport taxi fleet to support transportation services, increasing trip numbers by 30 per cent and reducing reliance on the city fleet.

Dubai Airports focused on enhancing the passenger experience

Paul Griffiths, CEO of Dubai Airports, emphasised the importance of seamless mobility solutions. “Our goal at Dubai Airports is to create an effortless and seamless experience for every guest, from the moment they arrive at our airports to the moment they depart. Reliable, efficient, and well-integrated ground transport is a crucial part of that equation.”

He added: This partnership with Dubai Taxi Company ensures that guests at DXB and DWC experience world-class mobility solutions from the road to the air, reflecting the speed, convenience, and service excellence we uphold across the entire airport journey.”

Motorists will be carefully watching whether fuel prices in the UAE rise or fall later this week.

The UAE Fuel Price Committee always reveals the latest pricing data on the last day of every month, meaning that citizens and residents will know more on February 28.

Read- UAE: Petrol, diesel prices for February 2025 announced

The fuel prices in UAE have been quite stable since the beginning of this year.

The UAE announced the retail fuel prices for February 2025, raising the rates by as much as 0.13 fils per litre compared to the month of January 2025.

It was from February 1, 2025, that Super 98 petrol cost Dhs2.74 a litre, up from Dhs2.61 a litre in January, while Special 95 will cost Dhs2.63 a litre, compared to Dhs2.50 a litre a month earlier. Petrol prices in January 2025 remained unchanged from December 2024 and were the lowest in the past year.

Brent crude futures rose to 38 cents, or 0.5 per cent, to $75.16 a barrel by 0401 GMT. US West Texas Intermediate crude futures gained 47 cents, or 0.7 per cent, to $71.17 a barrel. Both contracts gained in Monday’s session after a $2 drop last Friday.

The US on Monday put new sanctions on more than 30 brokers, tanker operators, and shipping companies for their role in transporting Iranian oil. President Donald Trump has said he wants to bring crude exports to zero.

For now, fuel demand strength in the West is also supportive of oil markets, some analysts say.

“Globally complex refining margins are looking robust, with strong fuel oil and distillates crack, particularly in USGC and NEW benefiting from the heating oil demand from the cold snap,” said Sparta Commodities analyst Neil Crosby in a note, referring to the US Gulf Coast and Northwest Europe.

Margins for a typical refinery in Singapore processing regional benchmark Dubai crude averaged $3.5 a barrel in February so far, compared with $2.3 a barrel last month, LSEG pricing data showed.

However, gains overall were capped by the uncertain demand outlook.

US President Donald Trump said on Monday that tariffs against Canadian and Mexican imports scheduled to start on March 4 are “on time and on schedule” despite efforts by the two trading partners to address Trump’s concerns about border security and fentanyl. Analysts say the tariffs would be bearish for global oil demand growth.

(With inputs from Reuters)