Luxury goods in the United Arab Emirates demonstrated resilience in 2025, with moderate overall growth driven by key factors such as strong inbound tourism and sustained population growth. The largest category by value, and the most dynamic performer, remained premium and luxury cars, benefiting from rising disposable incomes and a preference for premium mobility solutions amid increasing urbanisation. The introduction of new models and advances in electric and hybrid vehicle technologies supported strong sales, aligning with the country's sustainability goals.
Luxury goods is increasingly characterised by the integration of advanced technologies and sustainability initiatives, driving brand differentiation and consumer loyalty. The increasing role of artificial intelligence in personalising customer experiences is a key factor, as luxury retailers utilise data analytics to tailor products and services to individual preferences. Sustainability is another critical consideration, with luxury houses adopting eco-friendly materials and transparent supply chains to meet growing demand for responsible consumption. The affluent consumer base, comprising a rising number of HNWIs and UHNWIs, plays a significant role in shaping demand. These consumers, typically aged between 35 and 55 years, exhibit sophisticated tastes across multiple luxury goods categories.
Luxury goods remains a highly competitive landscape, with key players in premium and luxury cars in particular vying for top share. In 2024, this ensured that Bayerische Motoren Werke AG retained the lead, driven by its portfolio of ultra-high-end vehicles and strategic focus on electric vehicles. The company's flagship models, such as the BMW X7 and BMW i7 electric sedan, resonate with affluent consumers seeking luxury, performance, and sustainability.
In 2025, the distribution landscape for luxury goods was characterised by a strong preference for traditional bricks-and-mortar stores, with high-end boutiques and department stores remaining dominant. These physical retail spaces offer immersive shopping experiences, complete with VIP lounges and expert sales personnel, catering to the discerning tastes of affluent shoppers. Department stores such as Galeries Lafayette and Bloomingdale’s offer a wide range of high-end brands such as Dior and Louis Vuitton, further elevating the in-store luxury experience and making them comparable to standalone luxury brand stores. In addition, early 2025 saw Galeries Lafayette at Dubai Mall launch its “Make It Iconic” campaign to celebrate French sophistication and innovation in collaboration with the French government. As a result, the share of luxury sales through these channels remains significant.
Luxury goods in the United Arab Emirates is poised for steady growth over 2025-2030, driven by expanding UHNWI and HNWI populations. As the number of wealthy adults in the country continues to rise, demand for luxury goods is expected to remain robust. Growth will be further supported by the local market's position as a global luxury hub and its appeal to high-spending tourists.
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Luxury Goods
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
See all of our definitionsThis report originates from Passport, our Luxury Goods research and analysis database.
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