Luxury goods in 2025: The big picture
Luxury goods in the United Arab Emirates demonstrated resilience in 2025, with moderate overall growth driven by key factors such as strong inbound tourism and sustained population growth. The largest category by value, and the most dynamic performer, remained premium and luxury cars, benefiting from rising disposable incomes and a preference for premium mobility solutions amid increasing urbanisation. The introduction of new models and advances in electric and hybrid vehicle technologies supported strong sales, aligning with the country's sustainability goals.
2025 key trends
Luxury goods is increasingly characterised by the integration of advanced technologies and sustainability initiatives, driving brand differentiation and consumer loyalty. The increasing role of artificial intelligence in personalising customer experiences is a key factor, as luxury retailers utilise data analytics to tailor products and services to individual preferences. Sustainability is another critical consideration, with luxury houses adopting eco-friendly materials and transparent supply chains to meet growing demand for responsible consumption. The affluent consumer base, comprising a rising number of HNWIs and UHNWIs, plays a significant role in shaping demand. These consumers, typically aged between 35 and 55 years, exhibit sophisticated tastes across multiple luxury goods categories.
Competitive landscape
Luxury goods remains a highly competitive landscape, with key players in premium and luxury cars in particular vying for top share. In 2024, this ensured that Bayerische Motoren Werke AG retained the lead, driven by its portfolio of ultra-high-end vehicles and strategic focus on electric vehicles. The company's flagship models, such as the BMW X7 and BMW i7 electric sedan, resonate with affluent consumers seeking luxury, performance, and sustainability.
Retail developments
In 2025, the distribution landscape for luxury goods was characterised by a strong preference for traditional bricks-and-mortar stores, with high-end boutiques and department stores remaining dominant. These physical retail spaces offer immersive shopping experiences, complete with VIP lounges and expert sales personnel, catering to the discerning tastes of affluent shoppers. Department stores such as Galeries Lafayette and Bloomingdale’s offer a wide range of high-end brands such as Dior and Louis Vuitton, further elevating the in-store luxury experience and making them comparable to standalone luxury brand stores. In addition, early 2025 saw Galeries Lafayette at Dubai Mall launch its “Make It Iconic” campaign to celebrate French sophistication and innovation in collaboration with the French government. As a result, the share of luxury sales through these channels remains significant.
What next for luxury goods?
Luxury goods in the United Arab Emirates is poised for steady growth over 2025-2030, driven by expanding UHNWI and HNWI populations. As the number of wealthy adults in the country continues to rise, demand for luxury goods is expected to remain robust. Growth will be further supported by the local market's position as a global luxury hub and its appeal to high-spending tourists.
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Overview:
Understand the latest market trends and future growth opportunities for the Luxury Goods industry in United Arab Emirates with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Experiential Luxury
- Luxury Hotels
- Fine Wines/Champagne
- Premium and Luxury Cars
- Personal Luxury
- Designer Apparel and Footwear
- Luxury Eyewear
- Luxury Jewellery
- Luxury Leather Goods
- Luxury Portable Consumer Electronics
- Luxury Timepieces
- Luxury Writing Instruments and Stationery
- Super Premium Beauty and Personal Care
If you're in the Luxury Goods industry in United Arab Emirates, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Luxury Goods in United Arab Emirates report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Luxury Goods in United Arab Emirates?
- Which are the leading brands in Luxury Goods in United Arab Emirates?
- How are products distributed in Luxury Goods in United Arab Emirates?
- How important is tourism in evaluating demand for Luxury Goods in United Arab Emirates?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How has COVID-19 and global recession impacted demand for luxury goods? What are the opportunities amidst the adversity?
- Where is future growth expected to be most dynamic?
Luxury Goods in the United Arab Emirates
Luxury goods in 2025: The big picture
2025 key trends
Competitive landscape
Retail developments
What next for luxury goods?
COUNTRY REPORTS DISCLAIMER
Experiential Luxury in the United Arab Emirates
KEY DATA FINDINGS
Affluent consumers drive demand for bespoke luxury experiences
Luxury hotels drive growth through immersive experiences and personalisation
Efforts to increasingly expand target audience
Growing demand for luxury experiences to drive future expansion
Dubai’s fascination with innovative architecture to inspire new launches
Luxury operators adopt green practices to appeal to affluent eco-conscious tourists
Fine Wines/Champagne and Spirits in the United Arab Emirates
KEY DATA FINDINGS
Growing demand for premium and experiential luxury drinks drives category growth
Regulatory environment remains a challenge
On-trade drives sales but off-trade is gradually expanding
Growing demand for premium and craft beverages to drive future growth
Luxury brands adopt sustainability and heritage storytelling initiatives
Growing demand for luxury alcohol set to drive off-trade sales growth
Premium and Luxury Cars in the United Arab Emirates
KEY DATA FINDINGS
Local consumers prioritise sustainability and bespoke experiences
Luxury cars driven by technological innovations and exclusivity
Established brands drive sales but new entry from China could disrupt competitive landscape
Luxury car manufacturers adapt to shifting consumer preferences
Sustainability supported by local government policies
Ultra-luxury shift to see broader move towards eco-conscious opulence
Personal Luxury in the United Arab Emirates
KEY DATA FINDINGS
Designer apparel and footwear (ready-to-wear)
Luxury eyewear
Luxury jewellery
Luxury leather goods
Luxury wearables
Luxury timepieces
Luxury writing instruments and stationery
Super premium beauty and personal care
Sustainability to drive growth in personal luxury with enhanced transparency
Luxury brands adopt technology and cultural sensitivity to thrive
Expansion of store-based retail presence and online offerings
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Luxury Goods
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- Luxury Foodservice
- Luxury Hotels
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- Fine Champagne
- Other Fine Wine
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- Luxury Brandy and Cognac
- Luxury Whiskies
- Other Luxury Spirits
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- Premium and Luxury Cars
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- Men's Designer Apparel
- Women's Designer Apparel
- Designer Childrenswear
- Designer Clothing Accessories and Hosiery
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- Children's Designer Footwear
- Men's Designer Footwear
- Women's Designer Footwear
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- Luxury Spectacle Frames
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- Men's Luxury Sun Glasses
- Women's Luxury Sun Glasses
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- Luxury Costume Jewellery
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- Men's Luxury Fine Jewellery
- Women's Luxury Fine Jewellery
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- Men's Luxury Bags and Small Leather Goods
- Women's Luxury Bags and Small Leather Goods
- Luxury Travel Goods
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- Luxury Wearables Electronics
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- Men's Luxury Timepieces
- Women's Luxury Timepieces
- Luxury Writing Instruments and Stationery
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- Super Premium Colour Cosmetics
- Super Premium Fragrances
- Super Premium Skin Care
- Other Super Premium Beauty and Personal Care
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Luxury Goods
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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This report originates from Passport, our Luxury Goods research and analysis database.
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