According to Bain & Company, 2023 was the strongest year for the global luxury fashion sector since the pandemic. But the growth story did not unfold in Europe, the United States, or even China, where consumer spending remains sluggish and purchasing power has weakened compared to previous years. Instead, luxury brands have been turning their attention to emerging markets, where wealth is expanding and younger generations are driving a new wave of demand.
The Middle East has quickly become one of the most important destinations, particularly Saudi Arabia, alongside Mexico in Latin America and fast-growing economies across Asia such as India, the Philippines, and Thailand. What makes these markets so appealing is not only the scale of opportunity but also the rapid rise in affluent consumers eager to invest in fashion and luxury experiences.
Via Riyadh
In the Middle East, the Gulf Cooperation Council countries—led by the UAE and Saudi Arabia—stand out as key growth engines. Euromonitor International projects that the luxury market across the Middle East and Africa will rise by 15 percent in 2024 to reach 54.7 billion dollars. The UAE continues to dominate as a regional hub, with its mix of wealthy residents, fashion-savvy expatriates, and high-spending tourists. By 2030, the number of millionaires in the country is expected to double to 127,000, creating even stronger demand for luxury goods.
Mashael Alfares
Saudi Arabia, meanwhile, has emerged as the region’s second-largest fashion market and one of the fastest moving. Analysts predict that the number of high-net-worth individuals in the Kingdom will double over the next five years, driven by economic diversification away from oil and toward sectors like culture, entertainment, and fashion. To accelerate this shift, the government has introduced a wide range of measures to attract international investment—from easing visa procedures to offering tax incentives and support for relocating global talent.
Bain adds that Saudi Arabia’s macroeconomic environment provides a favorable backdrop for long-term growth, with relatively low inflation, stable GDP expansion, and consistent government support for industries that contribute to the Kingdom’s future vision.
