Saudi Arabia and the UAE were the two “main growth engines” for the GCC personal luxury market in 2024, according to Chalhoub Group’s GCC Personal Luxury report (pdf). Saudi Arabia accounted for 18% of the regional luxury market — up 5 percentage points y-o-y — coming in behind the UAE, which rose 7 percentage points to 56% of the market. Kuwait comes in third (13%), followed by Qatar (10%), Bahrain (1%), and Oman (1%).

The Kingdom stands out for its dynamic retail environment, which saw a 24% y-o-y increase in gross leasable area (GLA) and a 3% rise in private consumption compared to 2023. Luxury mall developments, new brand entries, and high consumer optimism — 65% of Saudi respondents said the economy had improved — are creating strong momentum. KSA also holds a 21% GCC market share in watches and jewelry, second only to the UAE.

THE REGIONAL PICTURE-

Shoppers across the GCC spent USD 12.8 bn on personal luxury goods in 2024, bucking a global downturn to grow 6% y-o-y, according to the report. Driving this growth was luxury fashion, which accounted for 43% of the total market, registering 6% y-o-y growth. Prestige beauty was the fastest growing at 12% y-o-y, led by a 17% rise in skincare. Fragrance dominates the beauty category at 49% of sales, with niche and private collections gaining popularity. Watch sales were flat, reflecting global patterns, but jewellery helped offset this with a 7% gain.

Across the GCC, tourist luxury spending rose 5% y-o-y, with an 8% rise in air arrivals. Saudi tourists ranked among the top spenders abroad, particularly in the UAE, attracted by broader product offerings and competitive prices.

The luxury fashion market’s growth extended into 1Q 2025, with Saudi Arabia contributing to an 11% regional rise in luxury fashion sales and a 23% jump in prestige beauty. The positive trend was supported by Ramadan coming in during the first quarter of the year, along with expanded points of sale and sustained consumer demand.

Meanwhile, the GCC’s e-commerce sector grew 13% y-o-y in 2024, once again bucking the global trend, where e-commerce is contracting as much as 4%. Still, online sales make up just 13% of the region’s total, compared to a 20% global average.

IN CONTEXT- Saudi Arabia ranked second among seven MENA countries and 26th globally in the E-Commerce Maturity Index earlier this year. Domestic e-commerce spending is projected to grow 10.6% annually to reach USD 24.5 bn by 2029, with its share of total consumer spending rising from 3.6% in 2025 to 4.1% by 2029.

Looking ahead: The GCC personal luxury market is expected to reach USD 15 bn by 2027, driven by domestic spending, tourism recovery, and an expanding base of high-net-worth expats. Eight luxury malls are planned across KSA and the UAE, alongside new category growth and e-commerce expansion.

Tags: