Dubai: How Chalhoub Group went from a Syrian family business to luxury empire
"The customer is empowered now. They know what they want and want to express their individuality," says Patrick Chalhoub, Executive Chairman of Chalhoub Group.
In an exclusive interview with Khaleej Times, he shares his family journey from Syria to Dubai, and describes how the Middle East's luxury market has developed from a niche industry into one of the most advanced local sectors.
A journey across borders
The Chalhoub family story began in Syria in the 1950s. Patrick Chalhoub's parents, Michel and Widad Chalhoub were determined to introduce French luxury to Damascus and founded the Chalhoub Group in 1955. "My father and mother were absolutely fascinated by the French culture," says Patrick Chalhoub.
However, political instability in the region compelled the family to relocate several times. In 1965, they moved from Syria to Lebanon due to political unrest. In 1975, the family moved to Kuwait following Lebanon's civil war, and in 1990, the Iraqi invasion of Kuwait once again changed their life's trajectory when they moved to the UAE.
"We were uncertain, but we boldly decided to relocate our headquarters to Dubai. With a clear vision, we saw its potential as a regional hub for luxury retail," says Patrick. This move would shape their destiny.
Building a luxury powerhouse
When Patrick joined the business in 1979, Chalhoub Group was a relatively small operation with around 200 employees and a handful of brand partnerships. Today, it is a key regional player home to 300 global luxury brands and over 16,000 employees.
One of the early milestones was the introduction of franchise luxury stores in the Middle East. In 1982, the Chalhoub Group brought Louis Vuitton and Chanel to Kuwait when these brands were still gaining international traction.
According to Patrick, most customers seeking luxury in the Middle East were tourists from Japan, where the appetite for luxury began much earlier. However, it wouldn't be long before local clientele would soon catch up and help transform the market into one of the strongest globally.
By the 2000s, the Middle East's luxury retail sector grew dramatically. New shopping centres like Dubai Mall and Mall of the Emirates revolutionised the retail experience, allowing shopping and entertainment to flourish. At the same time, global brands saw the region's immense potential, and customers who would previously travel for high-end fashion were now demanding a local luxury market.
"What was once a niche audience has become one of the world's most sophisticated, knowledgeable, and demanding luxury consumer bases," Patrick explains.
The Chalhoub Group worked closely with mall developers to create shopping experiences to meet these new demands.
The art of knowing the consumer
Patrick explains that luxury retail is not just about selling expensive goods but about understanding people. It's an industry that allows customers to dream.
In that respect, consumer behaviour in the luxury sector has evolved significantly. Modern shoppers look for brands that align with their values, whether cultural, political, or environmental.
Chalhoub Group is constantly looking for brands that reflect these evolving priorities and introducing them to the Middle East market.
"Scouting brands is something we love to do. We constantly look for new opportunities, whether in Japan, Korea, New York, or Paris, to bring something fresh to the Middle East," Says Patrick.
The future of luxury in the Middle East
With consumer expectations shifting rapidly, Chalhoub Group is responding by investing in homegron labels such as Level Shoes and Faces while continuing to introduce new international brands that align with the market's changing preferences.
The Group has embraced digital transformation to stay ahead, developing AI-driven personalisation strategies for online and in-store shopping experiences.
As Chalhoub Group marks its 70th anniversary this year, the company is expanding its expertise into new categories, such as skincare, luxury watches, jewellery, and eyewear, reflecting its ambition to broaden its global footprint.
"We want to create a legacy that lasts—not just for our family, but for the young talent in our team who will drive the company forward," says Patrick.
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