The luxury goods market in the Middle East is set to grow by 15 per cent in 2012 a newreport has said, cementing the region’s place as a global leader in the sector.
The report by Bain & Company has predicted the global market for high-end productswould exceed €200 billion ($260 billion) this year with the Middle Eastern market growing by 15 per cent.
The predicted results suggest sales of luxury goods are defying concerns over the Eurozone turmoil and fears of emerging markets slowing down.
Cyrille Fabre, partner at Bain & Company Middle East, said: “The Middle East remains a crucial component in the sustained growth of the global luxury market.
“The region has opened exciting growth possibilities for key industry players and continues to be a major destination for a wide range of luxury brands.
“Bain’s latest Luxury Goods Worldwide Market Study reaffirms the robust shape of the global luxury market and likewise underlines the huge growth potential of the Middle East region.”
Growth in online sales, China’s continuing expansion and a shift from wholesale to directly owned retail were key factors in fuelling global growth for the sector.
Bain & Company’s study predicts growth in Europe this year will range between two to four per cent, the Americas will see growth of between five to seven per cent while China will see growth of between 18 to 20 per cent.
The news comes as luxury jewellery designer Tiffany & Co. announces plans to expand their reach in the region.
Though Tiffany has been operating in the UAE for a number of years through Damas stores, a new joint venture will see the famous brand offer their collections to a wider range of consumers.
Sean Angle, partner at DLA Piper ME, the law firm who managed the joint venture, said: “Tiffany designs are widely sought after across the world and a selection have been available in the UAE for a number of years.
“The new corporate structure will enable more designs to be brought to the region while allowing Tiffany greater control over its brand identity.”