The Business of Luxury in the Middle East
With more than 350 million inhabitants, important natural resources and a growth rate exceeding four percent, the Middle East region is fast becoming one of the brightest markets in the world.
The region’s healthy luxury sector, estimated to be worth between $6 billion and $10 billion, has recorded a CAGR of 11 percent in the past five years and should maintain growth of eight percent over the next three years.
Thanks to a young population, with 50 percent aged 30 years and below, the Middle East is also home to 500,000 high-net-worth-individuals, with assets exceeding $1.8 trillion.
This boom has been fueled by the region’s economic growth and heavy investments made on retail space, increasing by more than 145 percent in gross leasable area.
The local population’s average monthly spend on fashion is $1,300, which is ten-fold the average spend in some European countries.
The luxury market has a bright future, but there remain challenges and issues to address.
To discuss the opportunities and challenges, Mediaquest is organizing a conference on the business of luxury in the Middle East. Arab Luxury World will take place on June 2 and June 3, 2014, in Dubai.