The Middle East is emerging as one of the fastest-growing regions for global luxury retail, according to the newly released Savills Global Luxury Retail Outlook 2025. The report identifies the UAE and Saudi Arabia as central to this trend, driven by rising demand, growing investor interest, and the arrival of new high-net-worth individuals (HNWIs).
In 2024, the UAE recorded the world’s highest net inflow of HNWIs, with approximately 6,700 individuals relocating to the country. This growth has contributed to the UAE’s leading position on Savills’ Dynamic Wealth Index, with Dubai and Abu Dhabi topping the list of dynamic wealth hubs. The report forecasts continued expansion in consumer spending for 2025.
“The Middle East has become increasingly attractive to brands from across the globe. With a growing base of affluent residents and strong international visitor reach, it offers a unique opportunity for luxury retail expansion,” said Thea Rowe, Cross-Border Retail Lead at Savills Middle East.
The report also highlights the rapid expansion in the food and beverage sector, which is expected to more than double in size by 2029. This contributes to the development of mixed-use luxury destinations, enhancing the retail ecosystem and attracting both regional and global players.
However, Savills cautions that while opportunities are expanding, market entry requires agility. Developers in the UAE and Saudi Arabia are operating on accelerated project timelines, often requiring full financial and design proposals within a matter of weeks. As a result, brands are encouraged to conduct detailed due diligence and consider local partnerships to navigate the market effectively.
“While protecting brand integrity remains essential, those willing to adapt operationally will be best positioned to secure prime locations,” Rowe noted.
The report also points to a shift in retail strategy, with developers and brands increasingly focusing on experiential retail. Larger, more immersive store formats and multi-sensory environments are becoming the norm, designed to deepen customer engagement.
Looking ahead, Savills expects the region to maintain strong momentum in luxury retail expansion over the next 12 months. Dubai is named among the top cities globally—alongside Bangkok and Kuala Lumpur—with the potential to deliver some of the most dynamic luxury retail growth, supported by wealth inflows, tourism, and new real estate developments.
With this trajectory, the Middle East is poised to play a more strategic role in the global luxury retail sector through 2025 and beyond.
