Luxury fashion now accounts for 43 per cent of the total GCC retail market last year, according to new research released by Chalhoub Group.

The report, focused on the 2025 GCC luxury market outlook, highlights the accelerated growth of luxury retail in the region, which it says rose by 6 per cent compared with the last year. Other sectors, including beauty and accessories, grew at a similar rate.

E-commerce sales account for 13 per cent of the regional retail market, growing by more than 13 per cent in the past year – a rate much faster than the global average.

“As we analyse the findings of our latest GCC luxury report, it is evident that the luxury sector in our region continues to demonstrate resilience and adaptability despite global economic challenges,” said Jasmina Banda, CSO and president of Chalhoub Group.

The GCC personal luxury market is expected to experience ongoing growth, driven by new retail developments, including store expansions and luxury brands, and is projected to reach US$15 billion by 2027.