Report

United Arab Emirates Luxury Goods Market Analysis

United Arab Emirates luxury goods market size in 2026 is estimated at USD 8.98 billion, growing from 2025 value of USD 8.50 billion with 2031 projections showing USD 11.86 billion, growing at 5.7% CAGR over 2026-2031. This growth highlights the United Arab Emirates' status as a global shopping hub, supported by its advanced tourism infrastructure and business-friendly regulations. Factors such as the expansion of large shopping malls and record-high duty-free sales have significantly boosted the demand for luxury products. Government initiatives, including the "We the United Arab Emirates 2031" vision and stricter enforcement of intellectual property rights, are also creating a favorable environment for the long-term development of the luxury goods market in the United Arab Emirates. By product type, apparel continues to dominate the market, while the demand for luxury watches is growing rapidly. In terms of end users, women remain the largest consumer group, although the market share of men is steadily increasing. Regarding distribution channels, online platforms are gaining traction, complementing the strong presence of physical retail stores. The United Arab Emirates luxury goods market is moderately consolidated, with major international brands operating alongside regional companies and emerging digital players.

United Arab Emirates Luxury Goods Market Trends and Insights



Consumer preference for limited edition products

Limited-edition collections are playing an increasingly important role in shaping consumer choices in the United Arab Emirates luxury goods market. These collections create a sense of exclusivity, making the products more desirable and valuable in the eyes of consumers. This trend is particularly evident in the luxury watch segment, where brands use limited releases to build stronger emotional and cultural connections with buyers. In November 2023, Hysek introduced a special kilada model to celebrate the UAE National Day, producing a limited edition of only 30 pieces. The watch incorporated design elements reflecting national pride, significantly boosting the brand's prestige and emotional appeal among collectors. Similarly, Hublot introduced Arabic calligraphy-inspired models during Dubai Watch Week 2023, showcasing how integrating regional heritage into limited-edition designs can attract affluent collectors. By combining exclusivity with cultural significance, these launches foster customer loyalty and encourage consumers to pay premium prices in a competitive luxury goods market.

Expansion of luxury shopping malls and retail real-estate

The luxury goods market in the United Arab Emirates is witnessing consistent growth, driven by significant investments in retail infrastructure that reinforce its status as a global shopping hub. In June 2024, Emaar Properties revealed plans for an AED 1.5 billion expansion of the Dubai mall, which will add 240 new premium stores. Similarly, Majid Al Futtaim is allocating USD 1.36 billion to upgrade the Mall of the Emirates, introducing a broader range of retail and experiential options. These initiatives are enhancing shopping experiences, drawing both local residents and international tourists. According to the World Travel and Tourism Council, traveler spending in the United Arab Emirates reached AED 217.3 billion in 2024, underscoring the crucial role of tourism in sustaining luxury demand. While online shopping continues to grow, robust tourist spending and ongoing infrastructure developments underscore the significance of physical retail spaces in the market.

Increase in counterfeit product availability

The increasing presence of counterfeit luxury goods is becoming a significant challenge for the United Arab Emirates' luxury goods market, as it damages brand reputation and redirects consumer spending away from genuine products. In April 2024, several women in the United Arab Emirates fell victim to a social media scam involving fake designer handbags such as Chanel, collectively losing thousands of dirhams. These incidents highlight how counterfeit sellers are increasingly using digital platforms to deceive buyers. To combat this issue, luxury brands are taking proactive measures to protect their products and customers. They are introducing advanced technologies like QR-coded certificates, blockchain-based tracking systems, and near-field communication (NFC) chips embedded in items to verify authenticity. Many brands are collaborating with the United Arab Emirates authorities to enhance the monitoring of online marketplaces and are running educational campaigns to inform consumers about the dangers and risks of purchasing counterfeit goods.

Other drivers and restraints analyzed in the detailed report include:

Booming inbound tourism and duty-free ecosystemImpact of social media and celebrity endorsementsCorporate-tax introduction reducing luxury consumption appetite

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Clothing and apparel accounted for the largest share of the United Arab Emirates' luxury goods market, holding 37.88% in 2025. Dubai has solidified its reputation as a global fashion hub, attracting renowned luxury brands to open flagship stores and launch exclusive collections in the region. This segment thrives due to the United Arab Emirates' appeal as a shopping and tourism destination, where high-end fashion is seen as a reflection of personal style and cultural sophistication. Both affluent residents and international tourists contribute significantly to the demand for luxury apparel, making it a cornerstone of the market.

On the other hand, the watches segment is expected to grow the fastest, with a projected CAGR of 7.22% through 2031. This growth is driven by luxury watchmakers introducing limited-edition designs that cater to local preferences, often unveiled at prestigious events like Dubai watch week. These strategies create a sense of exclusivity and cultural connection, appealing to consumers who value unique, investment-worthy timepieces. The rising interest in collectible watches as both status symbols and long-term assets further supports the segment's expansion in the United Arab Emirates' luxury goods market.

The UAE Luxury Goods Market Report is Segmented by Product Type (Clothing and Apparel, Footwear, Jewellery, and More), End User (Men, Women, and More), and Distribution Channel (Single-Brand Store, Multi-Brand Store, and More). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

LVMH Moet Hennessy Louis Vuitton Kering SA Compagnie Financiere Richemont SA Chanel SA Capri Holdings Ltd Breitling SA Tapestry Inc. Giorgio Armani SpA Hermes International SA Rolex SA The Swatch Group Ltd. Burberry Group Plc Dolce & Gabbana Srl Audemars Piguet Holding SA Estee Lauder Companies Inc. Chopard & Cie S.A Nappa Dori Private Limited Ajmal Perfumes Tod's S.p.A. Moncler S.p.A.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support