The new faces of Gulf luxury: Young, rich, optimistic

Editor’s note: This story is excerpted from our exclusive report Driving revenue in the Middle East: Saudi Arabia and UAE. To obtain a copy visit our reports section. From Zegna choosing Dubai to host its first show outside of Italy to The Frankie Shop debuting its minimalist cool styles in Abu Dhabi, more luxury brands are landing in the Middle East — and with good reason. In 2024, the Gulf Cooperation Council (GCC) nations saw personal luxury sales grow 6% year-on-year, in sharp contrast to the 2% decline globally, according to Chalhoub Group. This growth was mainly driven by the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), the two largest markets in the region by GDP. Fueled by a growing number of wealthy expats and robust local spending, Chalhoub expects retail sales in the Gulf to jump 6% from $12.8 billion in 2024 to $15 billion by 2027. However, tapping into this growth requires a deeper understanding of the consumers behind it, from their interests and values to their purchasing behaviors. Gulf consumers at large: Rich and optimistic According to a recent report by Henley & Partners, the UAE is set to gain a net 9,800 millionaires in 2025, leading the world in wealth inflow. Strong demand from the UK, India, Russia, Southeast Asia, and Africa, along with attractive golden visa options, has helped the country boost its millionaire population by 98% since 2014. Saudi Arabia follows closely, with a projected inflow of 2,400 millionaires this year, making it the fastest climber on the list. This surge is supported by returning nationals and an increasing number of international investors settling in cities like Riyadh and Jeddah. These consumers aren’t just rich — they’re optimistic and eager to spend. According to a survey by Chalhoub Group, Saudi consumers are the most optimistic in the region, with 65% perceiving their economy in Q4 2024 as stronger than in the previous quarter. “Happiness, hope, and confidence dominate emotions across markets, with Gen Z the most positive in Q4, with 98% reported feeling this way,” states the report. Notably, this rising consumer confidence is translating into stronger spending intent, with 97% of GCC consumers planning to maintain or increase spending in Q1 2025 — well above the global average of 58%. PWC similarly projects that GCC luxury shoppers will continue to increase their spending across luxury categories, including watches (47% of respondents), jewelry (44%), leather goods (42%), and cars (40%). A closer look at consumer profiles While Gulf consumers are clearly spending, understanding what they’re buying and why offers deeper insight into this dynamic market. Here’s a closer look at the key consumer profiles shaping luxury trends in the region: The digital-first Gen Z beauty lover Gen Z women, ages 13 to 28, are propelling the Gulf’s beauty boom. On average, they spend $52 on skincare and $63 on makeup a month, using nearly five skincare products daily. Heavily influenced by social media content, this demographic uses TikTok for product discovery, YouTube for tutorials, and Snapchat for sharing purchases. Gen Z’s global exposure, both online and offline, also means they embrace international brands, with regional favorites including L’Occitane, Charlotte Tilbury, The Ordinary, Drunk Elephant, and Fenty. Given the region’s harsh and dry climate, these young shoppers are focused on functionality, valuing hydration, anti-aging, and achieving a natural, “skin-first” glow. “They gravitate towards formulations that are rich in hyaluronic acid, glycerin, and ceramides that have moisture-locking properties and are able to restore, rebalance, and assist the skin’s natural protective barrier,” Kelly Kovack, CEO of BeautyMatter, tells Jing Daily. The Saudi streetwear enthusiast Streetwear enthusiasts, both male and female, make up a growing community in Saudi Arabia. These shoppers, typically Gen Z or young millennials, embrace streetwear as a form of self-expression, influenced by social media trends and regional lifestyle events, such as the kingdom’s annual Soundstorm music festival. Many seek understated streetwear, modest silhouettes, and a touch of cultural identity, giving rise to local brands like Torba Studio and collaborations like Adidas x Kaf By Kaf. On the Gulf’s distinct street style, Reiting Lee, founder of The Oriental Hybrid, says, “One unique trait in the region is that the youth here tend to dress in streetwear on a seasonal basis due to the climate, meaning that they opt for western-style streetwear in the spring and summer, yet return to traditional wear in the winter, such as farwa [a traditional Bedouin overcoat with fur or sheepskin lining].” The Emirati HNWI fashionista Don’t underestimate Emirati fashion lovers — these shoppers are highly attuned to global trends, with many of them considering themselves fully up-to-date on brand collections. While they frequent regional luxury malls (one-third of Dubai residents spend half of their fashion budget locally), they also travel to Europe for greater variety and early access. And they know how to spend. High-net-worth individuals (HNWIs) in Dubai shell out $58,000 annually on luxury retail, more than double their counterparts in Riyadh ($24,000). As residents of the region’s luxury capital, they expect the best of the best: full global collections, personalized offerings, and VIP perks. “The UAE ranks among the top luxury markets per capita, with consumers prioritizing heritage brands, bespoke experiences, and VIP services,” says Taqua Malik, founder of boutique cultural intelligence firm Freedomvisory. Lee adds, “While Saudis are generally more price-sensitive, Emiratis and Qataris would care about the premium bold look.” The mature (Gen X +) wellness devotee Although the region’s wellness industry is largely dominated by youth, Gen X (45 and up) should not be overlooked. These consumers value longevity and beauty maintenance, seeking not just more years but more healthy years. As this generation came to wellness later in life, many feel the need to catch up — especially as they begin facing age-related health concerns. This has fueled the popularity of wellness retreats, with consumers escaping to neighboring countries for weekend getaways. Among the services they seek, wellness-driven skincare is a major trend. “We’re seeing a movement toward stress-relieving, holistic beauty rituals, inspired by traditional practices like herbal infusions, body-smoke rituals (bakhoor), and scalp health treatments.” Muzon Ashgar, founder of Saudi beauty brand MZN Bodycare. Menopause solutions are another trend to watch. “Gen X, aged 45 to 60, are of course driving this, refusing to experience menopause the way their mothers did,” says Ophelia Yeung, senior research fellow at the Global Wellness Institute.

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The new faces of Gulf luxury: Young, rich, optimistic