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MIDDLE EAST LUXURY RETAIL SECTOR

03.04.2019


The definition of luxury has been changing with the mind-blowing pace of transformation in lifestyles. Affluent shoppers manage to keep pace with this change triggered by themselves along with the global circumstances. The position of the Middle East luxury retail market has changed in the competitive international global shopping stage. It has recently been competing very eagerly with the centers of luxury retail such as Paris, London and New York in order to establish itself as the ultimate destination for luxury shopping tourism in addition to the local customers’ attention.



Middle East and North Africa (MENA) region is one of the focus areas for arcoglobal, too. As a leader luxury retail shopfitter that works with international luxury brands all over the world, arcoglobal has a branch office in the United Arab Emirates (Dubai) where the luxury goods market has enjoyed impressive growth over the last decade like Saudi Arabia and Kuwait also did.

According to the output by GlobalData, the luxury goods market in MENA reached US$11.5 billion in 2017 and is forecast to grow at a CAGR (compound annual growth rate) of 5.6% over the following years to reach US$15.1 billion by 2022. The United Arab Emirates (UAE) remained the largest luxury market in the region with a share of 41.3% in 2017 and is expected to retain its top position through 2022. The UAE is the leading market for luxury goods sales and Dubai contributes a major share to the UAE luxury market, driven by increased international tourists and its status as business hub.



The UEA has become a luxury shopping paradise with its huge malls and shopping festivals as well as the presence of worldwide retail brands offering hard luxury items like real jewellery, watches, handbags and sunglasses. Across the Middle East, shopping malls fulfill an important cultural and social need. The impulse to build malls across the Middle East has started in the late 20th century driven by the increasing wealth with the discovery of oil. In the early 21st century, a further boost by a growing tourism industry – particularly in Dubai which can be seen as the mall capital of Middle East – applied. “Dubai Shopping Festival” as the biggest shopping festival in the Middle East and “Arab Luxury World” as an important conference on the business of luxury in the region attract many local and international visitors boosting the luxury shopping volume. “Abu Dhabi Shopping Festival” in the capital and second most populous city in the UEA after Dubai is also a center of attraction when luxury retail is regarded. Abu Dhabi houses quite a lot of luxury brands, world’s most famous brand outlets and exclusive collections. During the festival, the city hosts huge numbers of shoppers visiting with this specific purpose.



arcoglobal has been performing partnerships with many giant luxury brands for the fit-out processes of their stores in the Middle East including Michael Kors (Dubai, the UEA), Polo Ralph Lauren (Jeddah, Saudi Arabia), Trvano (Abu Dhabi, the UEA) and Ingie Paris (Dubai, the UEA) along with the collaborations with the brands for their İstanbul stores like Fendi, Karl Lagerfeld, Tag Heuer, Les Benjamins, Galeries Lafayette, Longchamp and many others. High-end Turkish brands such as Chakra and Paşabahçe also works with arcoglobal during their entries to the Middle East markets.

REFERENCES:
www.arcoglobal.com
www.arabianbusiness.com
www.esquireme.com/content/31768-why-the-mega-mall-is-so-imporatant-in-the-uae
https://www.globaldata.com/


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