Luxury shoppers in the UAE are showing strong spending intentions, with demand growing for designer watches, jewellery, handbags and premium experiences, a new study said.
UAE luxury spending appetite remains strong
Consumers in the UAE and Saudi Arabia are showing a stronger appetite for luxury spending than shoppers in other major markets, according to the BCG x Altagamma True Luxury Consumer Insights study.
The research found that spending appetite in the Middle East over the next 18 months is six percentage points above the global average.
The strongest spending intentions come from top-tier luxury consumers, with a positive spending appetite of 19 points. The findings suggest that demand for premium products and experiences remains strong across the region.
The study is based on a survey of around 10,000 luxury consumers across 11 markets. Middle East figures combine responses from the UAE and Saudi Arabia.
Watches and jewellery among top luxury choices
The study found that Middle East consumers are increasingly looking beyond prominent brand logos when choosing luxury products.
Design, craftsmanship, quality, exclusivity and lasting value are becoming more important purchasing considerations.
Watches, jewellery and handbags feature among the most popular luxury purchases in the region.
Spending interest is also extending beyond designer products to wellness, longevity, luxury hotels, restaurants and interior design.
Luxury experiences attract more interest
Luxury is no longer limited to products, with consumers also showing interest in experiences that offer comfort and exclusivity.
Hotels, restaurants and wellness services are among the areas attracting spending interest.
The findings reflect changing preferences among luxury consumers, who are placing greater importance on the quality of products and experiences rather than simply displaying well-known brands.
Luxury brands focus on UAE consumers
The findings were presented at The Luxury Edit, Instagram’s first luxury summit in the Middle East, organised by Meta.
The event brought together representatives from the luxury, retail and tourism sectors, including H.E. Issam Kazim, CEO of Dubai Corporation for Tourism & Commerce Marketing, and Michael Chalhoub, Group CEO of Chalhoub Group.
Pietro Barbini, Luxury Principal at Boston Consulting Group, said: “The Middle East continues to be one of the most dynamic luxury markets globally, supported by strong consumer confidence and a deep appreciation for quality, craftsmanship and iconic brands. What we’re seeing is an evolution in how consumers engage with luxury, with digital discovery, social influence and AI playing an increasingly important role alongside traditional drivers of desirability. Brands that can balance heritage with innovation will be best positioned to capture future growth in the region.”
Meanwhile, Boston Consulting Group forecasts that the global personal luxury market will grow by 2% to 5% in 2026, increasing to 4% to 7% by 2029.
