The UAE is emerging as a key hub for international luxury brands, supported by strong consumer demand, increasing wealth, and growing accessibility in the Middle East, according to the Savills Global Luxury Retail Outlook 2025.
UAE’s rising luxury market
The report highlights the UAE and Saudi Arabia as leading markets in the region, with Dubai and Abu Dhabi topping the Savills Dynamic Wealth Index.
The UAE recorded the world’s highest net inflow of high-net-worth individuals (HNWIs) in 2024, estimated at 6,700. This surge is strengthening the country’s position as a strategic destination for luxury retailers.
“Set between East and West, the Middle East has become increasingly attractive to brands from across the globe. With a growing base of affluent residents and strong international visitor reach, it offers a unique opportunity for luxury retail expansion,” said Thea Rowe, Cross-Border Retail Lead, Middle East at Savills Middle East.
Expanding sectors and retail trends
The report also points to rapid growth in the food and beverage sector, expected to more than double in size over the next four years. This growth supports luxury retail by enhancing mixed-use developments and lifestyle destinations.
Savills cautions that navigating the fast-changing retail environment requires local knowledge and agility. In the UAE and Saudi Arabia, developers are accelerating project timelines, with full proposals often needed within weeks.
Rowe added, “With limited availability and strong demand, flexibility is critical. While protecting brand integrity remains essential, those willing to adapt operationally will be best positioned to secure prime locations.”
Future outlook
Luxury retail formats are evolving towards more immersive, experience-driven spaces, allowing brands to engage consumers through multi-sensory shopping.
Savills expects continued momentum in luxury retail across the Middle East, with Dubai among the top cities poised for dynamic expansion alongside Bangkok and Kuala Lumpur.
The sustained inflow of wealth and rising consumer demand position the UAE as a growing strategic market for luxury brands through 2025 and beyond.
tanvir@dubainewsweek.com
