DUBAI: Dubai accounts for 30% of the Middle East's luxury goods market and is set to gain from increased regional tourism, according to a report from Bain & Company, the consultancy.
As the global luxury market prepares for enormous growth, Dubai is set to benefit hugely, as it commands around 60% of the United Arab Emirates high-end consumer market, reports Gulf News
Forecasts suggest that the worldwide luxury goods market may grow by up to 50% faster than global GDP, with 4% to 5% growth in 2013 and global sales reaching €250bn by the middle of the decade.
And the Bain report has found that consumers' habits are changing, with increasing numbers looking at new destinations such as Dubai, South East Asia and Australia.
The report found that the "Middle East is growing at a steady pace, with Dubai continuing as the centre of gravity and the only city attracting foreign luxury consumers, such as Russians, Indians and Africans."
Explained Cyrille Fabre, the Bain & Company partner who leads the retail and consumer products practice for the region: "Local consumption, intra-region tourism and the strong historic relevance of hard luxury and perfumes/cosmetics are key market drivers."
"Dubai is the heart of the regional market as the city alone commands around 30% of the luxury market of the region," he added.
Meanwhile, brand owners have to take into account different consumer practices, as a report by market research firm Nielsen
has found that more Middle East and Africa customers are prepared to buy eco-friendly products regardless of any premium.
Unlike in most areas, religion is an important deciding factor when making purchases, with 71% citing this as an issue, compared to only 32% around the rest of the world.
Data sourced from Gulf News, Nielsen; additional content by Warc staff