The Middle East has emerged as the global centre for luxury, with the regional market valued at approximately €15.02 billion in 2025 and on track to reach €35 billion by 2031. While global luxury spending remained relatively flat in 2024, the Gulf Cooperation Council (GCC) defied the slowdown with strong growth driven by high-net-worth individuals and a surge in tourism. This resilience is anchored by a massive influx of private wealth; the UAE alone attracted a record 9,800 millionaires in 2025, the highest net inflow globally. However, the real story lies behind the scenes, where a few regional powerhouses control the infrastructure and cultural gatekeeping that allows global brands to thrive.

Who controls the Gulf luxury market

The GCC luxury market is a mix of global conglomerates and dominant regional family-owned groups that manage market entry and licensing. While European giants like LVMH and Kering dominate brand ownership, the on-the-ground control is held by distributors who run stores and e-commerce. Chalhoub Group is the primary luxury retail partner in the Middle East, specializing in high-end fashion and beauty with over 950 stores. Al Tayer Group, through its retail division Al Tayer Insignia, leads in both physical and digital luxury channels, representing nearly 80 brands. Alshaya Group acts as a powerhouse for mass-to-premium lifestyle retail, operating over 4,000 stores across the region.

From ultra-luxury to premium lifestyle

Each group maintains a distinct portfolio that defines its segment dominance. Chalhoub holds the keys to absolute luxury, while Al Tayer blends ultra-luxury with high-end department stores. Alshaya focuses on global premium lifestyle brands that scale across all city tiers.

• Chalhoub Group Portfolio: Focused on elite fashion and beauty, they represent Louis Vuitton, Dior, and Lancôme. They also own stakes in brands like Christofle, Tanagra, and Level Shoes.

• Al Tayer Group Portfolio: They represent global titans like Prada and operate major department stores like Bloomingdale's. Their portfolio also extends into luxury automotive with brands like Ferrari.

• Alshaya Group Portfolio: A powerhouse for premium lifestyle, managing Victoria's Secret, Starbucks, and H&M. They also run higher-end outlets like Harvey Nichols Kuwait.

The regional appetite for luxury is highly segmented, with fashion remaining the cornerstone, contributing 35.28 per cent of the GCC luxury market in 2025. Watches and Jewellery are poised for the highest growth among product types, with a projected 10.50 per cent CAGR to 2031.

Regional dynamics within the gulf

While the UAE currently commands the largest market share at 48.15 per cent, the regional dynamics are shifting as Saudi Arabia emerges as the fastest-growing powerhouse with a projected 10.05 per cent CAGR through 2031. Saudi Arabia's Vision 2030 and the $17 billion Red Sea Global project are transforming the Kingdom from a domestic-only market into a global luxury destination. Simultaneously, Qatar is leveraging its post-World Cup infrastructure and a 90 per cent reduction in business registration fees to sustain a 10.15 per cent growth rate, reaching an expected $2.63 billion by 2031. Kuwait remains a critical high-value market, characterized by the region's most informed local buyers who prioritize heritage and artisan craftsmanship over mere brand scale.

Ounass and the two-hour luxury standard

Al Tayer Group’s Ounass has set a global benchmark for luxury e-commerce by solving the trust gap in the Middle East. While only 13 per cent of luxury sales in the GCC happen online, Ounass has secured leadership through hyper-local logistics, offering two-hour delivery in Dubai and three-hour service in Riyadh. Their strategy involves blending global couture with local cultural markers, such as campaigns for Ramadan and Eid, which honor regional aesthetics. This localized digital approach is essential in a market where women account for over 65 per cent of total luxury spending.