The key points
- Expo Dubai and the 2022 World Cup in Qatar attract tourists, investments and events
- Luxury brands have returned to bet on the area: from the Dior exhibition to the Cavalli Tower
- According to Bain, the driving force of the area are Saudi Arabia and Dubai
Fashion and luxury are back as protagonists in the Middle East. For years overshadowed by the Chinese boom; engaged in an economic and partly political transformation, in 2021 the Emirates and the Gulf countries recorded an increase in sales of luxury products: Bain & Co. photographs the Middle East – and, in particular, Dubai and Saudi Arabia, as the engine of the “Rest of the World” area which closed 2021 with a growth of 34% (11% at constant exchange rates) over 2020 and 4% on 2021.
The latest “State of the Uae Retail Economy” report by the Majid Al Futtaim group, which records the trend in consumption in the third quarter of 2021 and speaks of a level of consumer confidence «which in Dubai has reached its maximum in 10 years », Highlights how between July and September 2021 (based on Pos transactions) consumption in the fashion sector increased by 18% compared to the same period of 2019.
The role of the pandemic
The pandemic has given a hand: “Covid-19 has led to the resumption of local business – explains Claudia D’Arpizio, partner of Bain & Co, head of the Luxury Goods sector -: the blocking of travel has led consumers to shop in the market domestic, and the fact that they are mostly ultra net worth – who usually buy abroad – has more than made up for the lack of tourists. “
The major events will bring tourists back to the site: the Dubai Expo 2020, running until March 31, 2022; the World Cup in Qatar, in November-December 2022. Events of global popularity that the luxury houses have already begun to “ride”. There are many examples: from the Chanel Cruise 2022 fashion show to Giorgio Armani’s One Night Only, passing through Tiffany’s Blue Book Collection 2021, all organized in Dubai. In Doha, on the other hand, “Christian Dior designer of dreams” is underway, the first exhibition organized by the Parisian fashion house in the Middle East, which includes pieces from the private collection of sheikh Moza bint Nasser, and “Virgil Abloh: Figures of Speech” , a retrospective that celebrates the multidisciplinary production of the creative director of Vuitton and founder of Off-White, who passed away on Sunday.
The case of Saudi Arabia
Although the big events are scheduled in Dubai and Doha, the country experiencing the most marked development is Saudi Arabia: the kingdom has undergone a transformation process for some years to free itself (or, in any case, not to depend 100% ) from the oil economy – Mohammad Bin Salman’s Vision 2030 – and opened up to international tourism: “The luxury market is experiencing strong growth in Saudi Arabia – continues D’Arpizio -, a country where wealth is highly polarized , but which is attracting more and more expats, and where luxury brands are entering now ». Precisely in Riyadh, which at the beginning of November hosted the debut of an International luxury week dedicated to jewelery, watches and the bridal sector, the Chalhoub group – commercial partner of luxury brands for 66 years and active in Saudi Arabia for 30 – opened ” A concept by Muse “a new retail format dedicated to young lovers of the high range:” Saudi Arabia is accelerating the path of cultural transformation, is attracting regional tourists and, during the pandemic, has seen the return of local consumers who have rediscovered at ease buying at home, ”explains Michael Chalhoub, president of Strategy, Growth, Innovation & Investment and vice president of Joint Ventures at Chalhoub Group.