22-05-2025
What Middle East luxury consumers really want
While global macroeconomic headwinds are cooling demand for luxury in many markets, the Middle East is moving in the opposite direction – accelerating, evolving and redefining what luxury means on its own terms.
Cities like Dubai and Riyadh are fast becoming style capitals, powered by a young, affluent population, ambitious national development programs like Saudi Vision 2030, and a surge in both local spending and inbound tourism. Add to that the region's growing investments in infrastructure, culture and creative industries, and the result is a potent mix of momentum and transformation. Industry forecasts reflect this excitement too, with the region's luxury sector expected to multiply in value by 2030.
To thrive in this fast-moving market, luxury brands need to understand four key shifts:
Youth-driven growth and the demographic dividend
A significant segment of the Middle East's population is under 30, and their preferences are redefining the future of luxury fashion in the region. These younger consumers gravitate toward brands that successfully merge global style with cultural relevance. They value craftsmanship and storytelling, gravitating toward designs that honour heritage through fabric, silhouette and symbolism.
In Saudi Arabia, another monumental transformation is women rapidly narrowing the economic gap, with their increasing purchasing power boosting demand for a diverse range of fashion products. These demographic nuances in the region are pushing luxury brands to rethink their approach, focusing less on conspicuous consumption and more on creating meaningful connections and experiences. Experiential and ultra-personalised retail
Luxury in the Middle East is as much about experience as it is about exclusivity. Whether through private lounges, concierge-style service, or capsule collections designed for the region, brands are doubling down on personalisation.
While e-commerce continues to expand, offline retail remains essential. As WARC's 'MENA's Anatomy of Effectiveness' notes, physical touchpoints can significantly enhance digital performance. The future is omnichannel – not just in logistics, but in storytelling, loyalty and brand-building. Even digitally native DTC brands are realising that to compete in this region, you have to show up offline too. The rise of regional designers and local identity
Yes, renowned European luxury houses like Hermes, Chanel, LVMH remain popular in the region as status symbols. But consumers expect such international players to provide exclusive, region-specific merchandise, personalised VIP services and exclusive in-store events and experiences that match global standards but also reflect local tastes and sensibilities. Simultaneously, regional designers are gaining visibility by integrating traditional craftsmanship and sustainable practices, appealing especially to younger buyers eager to support homegrown talent.
Regional fashion weeks and events are spotlighting homegrown talent, further cementing the region's influence on global luxury narratives. There is particularly more interest among younger Gen Z and millennial customers, who are unafraid and more open to experimenting with lesser-known brands, including local brands. If the storytelling and aesthetic resonate, brand loyalty follows – regardless of how globally recognised the name is. My personal favourite trend: The transformative power of AI in luxury
Just like many other sectors, AI is fundamentally reshaping the luxury fashion customer experience across the Middle East, contributing to making it more personalised, efficient and immersive than ever before. From virtual shopping lounges to real-time personalisation, AI is redefining how luxury feels – both online and in-store. It's enabling brands to emphasise craftsmanship and exclusivity through immersive experiences that go beyond the product.
This hyper-personalisation is becoming the new standard in luxury, as discerning Middle Eastern shoppers increasingly expect brands to understand and anticipate their unique tastes and needs.
Redefining the soul of luxury
As I look at the shifting sands of the global luxury landscape, one thing is clear: the world's new benchmarks for exclusivity and customer experience are being set here in the region where heritage collides with innovation and tradition dances with modernity.
But are luxury brands truly paying attention? Or are they still stuck in a Eurocentric echo chamber, missing the nuanced desires of a sophisticated, diverse audience that is rewriting the rules of what it means to be 'exclusive'? The future of luxury fashion, I believe, will belong to those who dare to look beyond the obvious. Those who understand that true luxury is not just about scarcity, but about meaningful, authentic relationships with an audience that demands more than just a product.
Here's the real question: Are brands listening closely enough to the Middle East consumer? Do they really know what drives their preferences? Do they grasp how this audience views luxury-not just as a status symbol, but as a reflection of identity, culture and aspiration? And, perhaps most importantly, do they know where these consumers are shopping, both online and offline?
Market insights, category trends and consumer behaviour data are not just boxes to tick, they are the lifeblood of any brand hoping to thrive in this new era. The brands that will win are those that invest the time to understand the subtle distinctions: the interplay of tradition and modernity, the hunger for innovation and the deep respect for heritage that defines the Middle East luxury consumer.
So, I ask again: Are we ready to redefine luxury, not just for the region, but for the world? Or will we let this moment slip by, clinging to outdated notions while the future passes us by? The answer, I suspect, will determine not just who leads the market, but who truly understands the soul of luxury in the years to come.
By Bipul Markan, Head of Research & Insights at Assembly MENA
