Middle East emerges as luxury retail's next powerhouse, says Savills
According to the newly released Savills Global Luxury Retail Outlook 2025, the Middle East is fast emerging as a key market for international luxury brands seeking expansion, driven by surging demand, wealth inflows, and increasing accessibility across the region.
The report highlights the UAE and Saudi Arabia as stand-out performers, forecasting a net increase in consumer spending for 2025. Dubai and Abu Dhabi top the Savills Dynamic Wealth Index, with the UAE recording the world's highest net inflow of high-net-worth individuals (HNWIs) in 2024, estimated at 6,700. This influx is reinforcing the region's appeal for luxury brands and underlining its long-term growth potential.
'Set between East and West, the Middle East has become increasingly attractive to brands from across the globe. With a growing base of affluent residents and strong international visitor reach, it offers a unique opportunity for luxury retail expansion,' said Thea Rowe, Cross-Border Retail Lead, Middle East at Savills Middle East.
The report also flags exponential growth in the region's food and beverage (F&B) sector, expected to more than double in size over the next four years. This complementary sectoral boom is supporting broader luxury ecosystem development and enhancing the appeal of mixed-use destinations.
However, Savills notes that navigating the Middle East's fast-moving retail landscape calls for agility, local insight, and timely execution. In key markets such as the UAE and Saudi Arabia, developers are increasingly working to accelerated timelines, with full financial and conceptual proposals often expected within just a few weeks. As such, international brands are encouraged to invest in thorough due diligence and explore strong local partnerships to ensure a smooth and strategic market entry.
'With limited availability and strong demand, flexibility is critical,' added Rowe. 'While protecting brand integrity remains essential, those willing to adapt operationally will be best positioned to secure prime locations.'
In line with these trends, retail developers are doubling down on experiential and lifestyle-focused retail formats. Luxury store formats are becoming larger and more immersive, with brands seeking to deepen engagement through curated, multi-sensory shopping experiences.
Looking ahead, Savills anticipates sustained momentum in luxury retail expansion across the region over the next 12 months. Building on resilient consumer demand, brand appetite, and a continued inflow of high-net-worth individuals, the Middle East is well positioned to attract further flagship and high-end boutique developments. Dubai, alongside cities such as Bangkok and Kuala Lumpur, is identified as one of the markets best placed to deliver the most dynamic expansion opportunities in the near term, driven by rapid wealth creation, visitor appeal, and the ongoing development of high-quality luxury real estate. As global retailers cement their presence, the region is set to play an increasingly strategic role in luxury brand portfolios through 2025 and beyond.
For further insights and detailed analysis, download the full Global Luxury Retail 2025 report from here.
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Middle East emerges as luxury retail's next powerhouse, says Savills
According to the newly released Savills Global Luxury Retail Outlook 2025, the Middle East is fast emerging as a key market for international luxury brands seeking expansion, driven by surging demand, wealth inflows, and increasing accessibility across the region. The report highlights the UAE and Saudi Arabia as stand-out performers, forecasting a net increase in consumer spending for 2025. Dubai and Abu Dhabi top the Savills Dynamic Wealth Index, with the UAE recording the world's highest net inflow of high-net-worth individuals (HNWIs) in 2024, estimated at 6,700. This influx is reinforcing the region's appeal for luxury brands and underlining its long-term growth potential. 'Set between East and West, the Middle East has become increasingly attractive to brands from across the globe. With a growing base of affluent residents and strong international visitor reach, it offers a unique opportunity for luxury retail expansion,' said Thea Rowe, Cross-Border Retail Lead, Middle East at Savills Middle East. The report also flags exponential growth in the region's food and beverage (F&B) sector, expected to more than double in size over the next four years. This complementary sectoral boom is supporting broader luxury ecosystem development and enhancing the appeal of mixed-use destinations. However, Savills notes that navigating the Middle East's fast-moving retail landscape calls for agility, local insight, and timely execution. In key markets such as the UAE and Saudi Arabia, developers are increasingly working to accelerated timelines, with full financial and conceptual proposals often expected within just a few weeks. As such, international brands are encouraged to invest in thorough due diligence and explore strong local partnerships to ensure a smooth and strategic market entry. 'With limited availability and strong demand, flexibility is critical,' added Rowe. 'While protecting brand integrity remains essential, those willing to adapt operationally will be best positioned to secure prime locations.' In line with these trends, retail developers are doubling down on experiential and lifestyle-focused retail formats. Luxury store formats are becoming larger and more immersive, with brands seeking to deepen engagement through curated, multi-sensory shopping experiences. Looking ahead, Savills anticipates sustained momentum in luxury retail expansion across the region over the next 12 months. Building on resilient consumer demand, brand appetite, and a continued inflow of high-net-worth individuals, the Middle East is well positioned to attract further flagship and high-end boutique developments. Dubai, alongside cities such as Bangkok and Kuala Lumpur, is identified as one of the markets best placed to deliver the most dynamic expansion opportunities in the near term, driven by rapid wealth creation, visitor appeal, and the ongoing development of high-quality luxury real estate. As global retailers cement their presence, the region is set to play an increasingly strategic role in luxury brand portfolios through 2025 and beyond. For further insights and detailed analysis, download the full Global Luxury Retail 2025 report from here.
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