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The Middle East Accounts For 8% Of Global Retail Luxury Good Sales

The Middle East Accounts For 8% Of Global Retail Luxury Good Sales

Vuyo Joboda Dazzles In Dubai

Louis Vuitton and Cartier are best placed to benefit as The Middle East has become one of the fastest growing  markets for luxury in 2023.

Analysts at the bank cited high oil prices that underpin buoyant economic conditions and demographic trends for their optimistic call on the region. Dubai’s continued focus on attracting tourists and foreign expatriates, as well as its diversification away from oil are also factors that will boost luxury spending.

LVMH Moet Hennessy Louis Vuitton SE, the owner of Louis Vuitton and Christian Dior, and Richemont, which makes Cartier jewelry and watches, will be beneficiaries of the Middle East’s luxury growth, according to the broker.

“The broad outlook for the region remains much more positive than for western economies, with GDP growth forecasts being revised up at a time of downward revisions for most countries globally,” analysts including Yasmin Clark and Carole Madjo said in a research note on Friday.

Dubai has seen its gross domestic product rise an annual 4.6 per cent during the first nine months of 2022 and drew nearly 13 million tourists up until November. Dubai also intends to increase its spending and focus on priority sectors, among them luxury and leisure.

According to Barclays, the Middle East is set to account for 8 per cent of luxury goods sales globally by 2030, up from 5 per cent currently.