2025 in Review: How the GCC Luxury Market Redefined Growth, Exclusivity & Consumer Desire

As 2025 draws to a close, the GCC luxury market stands stronger than ever. In a year marked by economic transformation, rising affluence, and a renewed appetite for exclusivity, the Gulf has once again proven itself as one of the world’s most resilient and influential luxury hubs.

Across the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman, luxury retail didn’t just grow - it evolved. And with it, consumer expectations, brand strategies, and the very definition of "luxury" in this region also shifted.

Luxury Learnings looks back at what shaped the industry in 2025, and what brands, retailers and talent should expect in the year ahead.

Despite global market fluctuations, the GCC luxury sector surged ahead, supported by:

• An expanding base of high-net-worth and ultra-high-net-worth individuals

• Strong luxury tourism inflows - especially into Dubai, Abu Dhabi, Riyadh and Doha

• A deeply rooted culture of gifting, celebration and status expression

• Exceptional mall and retail infrastructure unmatched in most global markets

• A growing young audience with high spending potential

Watches, jewellery, bags, fashion, beauty and lifestyle all benefitted - but some categories stood out more than others.

This year, watches and jewellery emerged as the fastest-growing luxury categories in the GCC.

Why?

Because in the Gulf, these items represent more than style - they carry legacy, value, identity, and investment potential.

Collectors sought regional exclusives. Women increasingly invested in high jewellery. Men deepened their passion for mechanical craftsmanship. And limited-edition pieces - especially those with cultural relevance - were often sold out within days.

The region continues to shape global watch allocations, brand exclusives and waiting lists.

Luxury leather goods maintained their place as one of the most gifted and self-purchased categories of 2025. Trends that dominated the GCC this year:

• A shift toward timeless, heritage-driven designs

• High demand for mini silhouettes and structured classics

• A renewed focus on seasonless luxury fashion

• Continued popularity of limited-edition capsules created specifically for the Middle East

These purchases weren’t impulsive - they were intentional, emotional, sometimes investment-driven, and always expressing personal style.

GCC consumers didn’t choose between online and in-store. They wanted both - and hybrid luxury became the new normal.

Offline remained dominant for the emotional, sensory experience of luxury. Online gained traction for convenience, personalisation, and repeat purchases.

Virtual consultations, WhatsApp clienteling, e-reservations, express delivery, and live shopping became integral to the luxury journey - especially for younger, digitally fluent shoppers.

If 2025 had one word, it was exclusive. The GCC showed unmatched demand for:

• Region-specific Collections

• Bespoke and Made-to-Measure Pieces

• Custom Monogramming and Personalisation

• Limited Editions

• High-jewellery Capsules

• Rare Watch Allocations

• Seasonal Gift Boxes curated for Eid, Diwali, Christmas & New Year

This was the year when global luxury brands realised that to win in this region, they must tailor their sales and customer service approach and not simply offer products and do billing.

Several forces shaped luxury consumption throughout the year:

1. Tourism: GCC cities - particularly Dubai - remained global capitals for premium shopping experiences.

2. Wealth Growth: Rising incomes and inward migration of wealthy individuals boosted demand across categories.

3. Cultural Significance: Gifting, celebrations, weddings, milestones, achievements - luxury is part of the lifestyle.

4. Digital Acceleration: Consumers expect omnichannel convenience without losing premium service.

5. Brand Exclusivity: Brands that created limited, curated and culturally aligned drops won the most attention.

Based on 2025’s trajectory, 2026 is set to be a defining year. We expect:

• Watches & Jewellery to continue dominating growth

• Personalisation to move from “nice-to-have” to essential

• Digital Shopping to rise in share and sophistication

• Craftsmanship-led Storytelling to become key for brand differentiation

• Regional Exclusives to increase

• Luxury Lifestyle Experiences to grow - Travel, Wellness, Culinary, Curated Events

The GCC is not slowing down. It is accelerating - and setting a global benchmark for luxury consumption.

At Luxury Learnings, we will continue to document, analyse and decode this dynamic market for brands, talent, and luxury professionals across the region.