The Middle East is home to one of the world's youngest and richest populations. In 2016 Arab consumers spent $320 billion on luxury fashion. For brands to capitalise, an understanding of cultural values is essential. Who is this luxury-loving cohort and what makes a brand a 'must have'?
Scope
Home to some of the world’s largest deposits of oil and natural gas, the Middle East’s tiniest countries also boast some of the biggest GDPs per capita. In Qatar, this stands at $129,700, the highest in the world. Nearby Kuwait, another nation rich in oil and gas reserves, boasts a GDP per capita of $71,300 , while the United Arab Emirates’ clocks in at $67,700. [1][2] To put that into context, the United States’ GDP per capita was recorded as $53, 272 in 2016. [3] Compared to the Gulf states, American spending power suddenly looks like small fry.
- 1. The Richest And Poorest Economies In The Middle East, WorldAtlas (August 2017)
- 2. Gulf luxury consumers: a world apart?, Chalhoub White Paper (2014)
- 3. United States GDP per capita PPP, Trading Economics (2017)
- 4. Interview with Cassie Owen by the author
- 5. Dubai is quickly and quietly becoming the world’s next great retail capital, Fashionista (February 2017)
- 6. How the Middle East can make the most of their youth bulge using educational technology, Panworld Education (March 2017)
- 7. Interview with Alia Khan by the author
- 8. Ecommerce in the Middle East: Amazon’s entrance and difficult legislation, The Next Web (July 2017)
- 9. Yoox Net-a-Porter strikes Middle-Eastern joint venture, The Telegraph (November 2016)
- 10. State of the Global Islamic Economy Report, Thomson Reuters (2016/17)
- 11. What 5 Muslim Women Think About Dolce & Gabbana's New Hijab Line, Cosmopolitan (January 2016)
The Modist: making modest fashion mainstream
Not every woman wants to wear crop tops and miniskirts – many would prefer to dress more demurely. But that doesn’t mean settling for bland, shapeless garments. The Modist is a luxury marketplace for modest fashion, appealing to those who want to cover up for faith or out of personal choice.
How is the Muslim lifestyle market evolving?
The halal lifestyle market has been steadily evolving, moving beyond its traditional remit of food and finance, and into the worlds of fashion, cosmetics, dating and intimacy. In the second of a two-part report, we look at how brands are navigating these sectors with Muslims in mind.
Middle East is the fastest growing beauty market
Spending on beauty in Saudi Arabia and the UAE totalled nearly $6.85 billion in 2015, with Euromonitor predicting that it’s only going to increase in 2016. It’s seen the Middle East and Africa overtake Latin America, emerging as the world’s fastest growing beauty and personal care market.
Shopping is an expensive hobby in the UAE
Shopping is the leisure pursuit of choice in the UAE. People stroll around in malls, buy online and travel to Dubai for the sales during the Dubai Shopping Festival. But extravagant spending comes with consequences, and with many women not working, saving is increasingly difficult.