Prime Highlights
- The Middle East remains the fastest-growing luxury market, rising by 5% even as global luxury spending stays flat.
- Strong tourism in the UAE and steady demand in Saudi Arabia continue to push the region ahead of other major markets.
Key Facts
- The global luxury market held steady at €1.44 trillion, while the Middle East saw solid year-on-year growth.
- Fine dining and luxury hospitality are booming in the region, with global fine dining up 8% and luxury hospitality increasing by 4%.
Background:
Even though the global luxury market has slowed down, the Middle East is still leading the way, emerging as the top-performing region in Bain & Company’s 2025 Luxury Market Report. The global luxury market stayed flat at €1.44 trillion, but the Middle East still grew by 5%, making it one of the strongest and most stable regions in the world.
Prepared in collaboration with Italy’s Altagamma, the report highlights a shift underway across the global luxury ecosystem. While economic and geopolitical pressures have trimmed the number of frequent luxury shoppers to around 330 million, down from 400 million in 2022, consumer appetite is transitioning from product-driven buying to “experiential indulgence.”
Much of this momentum is coming from Gen Z, who increasingly prioritise high-end hospitality, cruises, gourmet dining, and travel experiences over traditional luxury goods. Even so, categories such as jewellery recorded strong growth of around 6%, and fragrances and eyewear continue to perform steadily.
For now, the Middle East stands out as a growth leader. Strong tourism inflows into the UAE and steady luxury demand in Saudi Arabia continue to elevate the region’s performance. Together with Africa, Southeast Asia, India, and Latin America, these emerging markets now collectively match the approximately $45 billion spent in China, where luxury spending contracted by up to 5% this year.
Bain’s analysis points to a “tectonic” shift in the region, particularly in categories tied to lifestyle and hospitality. Fine dining rose by 8% last year, contributing around $75 billion globally, while luxury hospitality climbed 4% to reach roughly $250 billion. According to Bain partner Sami Abdul Rahman, the key challenge now lies in ensuring the region can keep up with rising demand: “Luxury is becoming more about how people spend their time and who they spend it with. The Middle East is growing fast, but the challenge now is whether the region can expand its supply quickly enough to keep up with rising demand.”
The report adds that luxury brands must stop simply reacting to trends and start leading them, while staying true to their values and building trust with consumers who are looking for more meaningful and experience-driven choices.
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