Middle East luxury malls: Gulf growth defies slowdown

As global luxury brands brace for a slowdown in traditional growth markets, Jing Daily’s latest report, Driving Luxury Revenue in the Middle East: KSA and UAE, provides an incisive look at the region poised to defy the economic trend. Click here for access. As luxury sales stall in the U.S. and China, brands are setting their sights on a region long overlooked: the Middle East. According to a recent report by Chalhoub Group, luxury sales in the Gulf nations grew 6% YoY to reach $12.8 billion in 2024, outpacing the global luxury market, which declined by 2%. By 2027, the regional market is expected to reach $15 billion, driven by robust local spending and sustained tourist arrivals. Powering both? The region’s booming luxury malls. Despite the rise of e-commerce, Arab shoppers continue to favor in-store experiences. In Saudi Arabia, for instance, malls are expected to remain the preferred shopping destination and account for over 80% of fashion and luxury sales in 2028, according to the 2024 State of Fashion in Saudi Arabia report. These shopping centers aren’t just popular with locals, they’re also attracting tourists from around the world. In the UAE, Russian visitors remain the top spenders, driven in part by sanctions limiting travel to Europe. They’re followed by Saudi tourists, who favor the Emirates for its superior shopping experience, broader selection, and more competitive pricing, states Chalhoub. Dubai Mall rises as cultural magnet Testament to this trend is Dubai Mall, recognized as the most visited destination on Earth. In 2024, it attracted a whopping 111 million visitors and welcomed 99% of all international visitors to the city for a third consecutive year. In addition to housing more than 1,200 retail outlets, Dubai Mall also boasts some of the city’s most iconic attractions, including the Dubai Aquarium and Underwater Zoo, an Olympic-sized ice rink, an immersive digital art museum, and direct access to the Burj Khalifa. It also regularly hosts cultural festivals, exhibitions, and live performances — especially during the city’s headline event, the Dubai Shopping Festival, when the venue transforms into a shopping bonanza. For luxury lovers, Dubai Mall’s Fashion Avenue offers over 150 global high-end brands, complemented by a suite of VIP services. In 2024, it introduced the Elite Personal Shopping Suite, offering personalized styling, full-service concierge support, access to exclusive brand collections, and invitations to pre-launch previews and limited-edition releases. Blending culture, commerce, and entertainment, Dubai Mall has evolved far beyond a traditional shopping destination. And it’s still growing — thanks to a $408 million expansion announced in 2024, which will result in 279 new luxury retail outlets. “Dubai Mall is evolving beyond traditional retail to become a lifestyle destination, offering exclusive hospitality spaces, branded cafés, curated events, and entertainment facilities. These experiences foster deeper connections and shareable moments over simple transactions,” a company spokesperson tells Jing Daily. Riyadh emerges as dynamic retail hub While Dubai remains the longstanding luxury capital of the Gulf, untapped opportunities await beyond the emirate. According to Chalhoub’s latest report, Saudi Arabia saw 24% growth in gross leasable area and 3% growth in private consumption in 2024, signaling strong retail momentum and rising consumer confidence. Riyadh, in particular, is undergoing rapid expansion, marked by the opening of Solitaire Riyadh in March 2025. Designed around the concept of a geode, the striking building features a curated lineup of luxury brands such as Bulgari, Cartier, Louis Vuitton, and Van Cleef & Arpels. A dedicated wellness wing — complete with a gym, spa, and wellness center — elevates the experience, positioning Solitaire as a must-visit lifestyle destination. The upcoming launches of mega-malls The Avenues and the Mall of Saudi in 2026, along with Westfield’s planned expansion into Riyadh, Jeddah, and Dammam, are set to further invigorate the kingdom’s retail landscape. Creating VIP shopping experiences However, as more retail developments emerge, brands will need to elevate their in-store experiences to meet the rising expectations of Gulf consumers. VIP areas, for instance, offer a sense of discovery and exclusivity that’s difficult to replicate online. Even e-commerce retailer Ounass has acknowledged the importance of a physical presence, launching a private shopping suite at Dubai’s Mandarin Oriental Hotel last year to cater to its high-end clientele. “Before, the VIP area at luxury boutiques was not a common practice in the kingdom. Most female HNWIs and upper-middle class still kept the habit of shopping at home for privacy considerations, either via luxury e-commerce platforms such as Farfetch, Ounass, or requesting the brand to send the products to their home to try,” says Riyadh-based retail expert Weiqi Li. “Now, with the Solitaire mall opening in Riyadh, more and more luxury boutiques are equipped with VIP areas, [so] maybe this could be a turning point.” Tech-driven retail innovations are also well positioned to attract the region’s predominantly young and tech-savvy consumers, with those under 30 making up 55% of the Middle East and North Africa population. “From AI-powered personal shopping assistants to NFT-backed luxury assets, Dubai is a testing ground for next-generation retail experiences,” says Taqua Malik, founder of Dubai-based boutique cultural intelligence firm Freedomvisory. “This tech-driven approach positions the city as a hub for consumers who seek cutting-edge, experience-driven shopping.” Ultimately, for luxury brands betting on the Middle East for growth, it’s not just about securing prime real estate — it’s about using that space to build lasting connections. As the region sets a new standard for high-end retail, discerning consumers will increasingly expect more exclusive, personalized, and immersive experiences, challenging brands to continuously innovate. Why sportswear is surging in the Middle East 5 luxury brand partners to know in the Middle East What makes the Middle East beauty’s next frontier? Is streetwear dead? Not in the Middle East Inside the Middle East’s tourism renaissance

Why luxury brands are chasing Middle East mall space

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Why luxury brands are chasing Middle East mall space