The location of the inaugural Shoptalk Luxe edition – arguably Abu Dhabi’s most famous luxury hotel, the Emirates Palace Mandarin Oriental – underlines the staggering evolution of the broader Middle Eastern region as a luxury retail destination. 

While Dubai and, to a lesser degree, Abu Dhabi have the first-mover advantage, other markets in the Gulf Cooperation Council (GCC) coalition are showing signs of rapid catch-up, especially the Kingdom of Saudi Arabia.  

But as multiple speakers have observed over the first two days of Shoptalk Luxe, it would be folly to treat the Middle East as a single market. Expect “unheard of complexity,” warned Charles Awad, chief brand officer at Majid Al Futtaim, one of the region’s largest retail groups whose portfolio of brands is as diverse as Lego, Carrefour, Marks & Spencer, Zara and H&M. The company processed 600 million customer transactions last year. 

“You cannot assume that the GCC is one area [where] you are going to market to consumers in the same way. It is a mosaic of very different consumer segments, different needs, and wants. In the UAE and Dubai, for example, you have to market by neighbourhood. In some parts of Dubai, there is a large Indian population, so your content needs to be tailored to those areas. You have to market by neighbourhood, by city, by country,” Awad explained. 

“People who come to the region assume that a Saudi in Riyadh is the same as a Saudi in Jeddah are absolutely wrong. That a consumer in Dubai, in Al Barsha, is going to be the same as one living in Deira is absolutely wrong. An Egyptian, of course, and a Saudi are very different. So you have to really understand the local consumer in great depth if you want to be successful. You cannot have a one-size-fits-all approach.”

Miral Youssef, Kering’s president of the Middle East and Africa, shared a similar warning. The UAE accounts for the lion’s share of Kering’s business across 16 markets in the broader region, and is home to the best-performing stores globally of most of the European luxury conglomerate’s brands. 

She describes the UAE as a unique market, at once a domestic market and a regional hub. 

The Emirates are a magnet for luxury shoppers. Kering has customers from more than 180 nationalities visiting its stores there annually, and the company employs staff from more than 90 nationalities in its UAE stores. 

“You can only imagine the diversity in culture, of languages, but even how you need to adapt your consumer journey to each of those different demographics. It is truly fascinating in terms of the evolution of the UAE. We are seeing prosperous growth across the full region, and I think the UAE will move from being the sole engine of growth to becoming more of a benchmark in terms of how we execute, the speed of execution, and for innovation.”

Saudi Arabia, shared Youssef, stands out to Kering for its positive trajectory, whether in real estate development or cultural community development.

Hong Kong-based flash sale operator OnTheList, which has spent a decade building a network of on- and offline flash sales across markets in Asia Pacific, has recognised the opportunities in the Middle East. A year ago, it launched in Dubai, and this month it has held its first sales in Saudi Arabia. 

Nicolas Vlieghe, who heads up OnTheList’s Middle Eastern business, told Inside Retail the massive growth of luxury retail in the region inspired the move. Dubai is ranked in the top five global markets for luxury fashion, accessories and timepieces. Already OnTheList is eyeing opportunities in Abu Dhabi and Qatar. 

“Customers here are keen to discover new brands, to buy fashion brands, elegant food and luxury. There is a strong appetite for that. Aspirational profile customers are very happy to be able to get access through OnTheList to luxury brands, accessories, jewellery, fashion, from the past season, but at a much better price,” said Vlieghe.

The 35 million people living in Saudi Arabia are experiencing a rapid loosening of typically strict lifestyle regulations. Women, especially, have been permitted in the past decade to drive cars and work in full-time employment, creating greater freedom and spending power. 

Their spending power is now very similar to that of the UAE, and they now have local access to brands. Over the past five or six years, we have seen a major transformation in the retail industry, with the opening of new malls in Jeddah and Riyadh.

“There is an appetite locally to discover all these luxury international brands.”

Many of those new-generation shopping malls have been developed by Cenomi Centers, which now boasts 20 properties with around 1.3 million sqm of retail space, serving 80 per cent of the nation’s 35 million population. Two more malls are under development under a licensing agreement with Westfield – one each in Riyadh and Jeddah. 

Alison Rehill-Erguven, the company’s CEO since 2022, spoke at Shoptalk Luxe on Wednesday. During her tenure, the ratio of retail to entertainment shifted in the latter’s direction by 10 points, to about 60-40 now, largely reflecting the youthful demographic of Saudis: About 65 per cent are aged under 35. 

“They are very well travelled, well educated and digitally savvy,” she explained. “They have experience in shopping centres around the world, as well as high streets and brands, so we really have to be on our game.

“If you go back 10 years, the country was closed to the world, and the shopping dynamic was incredibly different. It was very transactional. Today, it is open to the world, and it is open to experience and sharing. You see families together, dates happening, male-female interaction, and females having dinner together. 

“So we need to be relevant, and relevance comes through shifting that ratio more towards food and beverage. The food and beverage scene has exploded, along with more entertainment, lifestyle activities, services, medical and beauty facilities. It’s all there,” Rehill-Erguven said. 

The expectations of consumers, especially in the UAE, are evolving. In Dubai, quick commerce is burgeoning. Awad shared his experience of relaxing on a beach one weekend, wondering what to buy his daughter for Christmas. 

“I went on an app, and in 15 minutes, I had an iPhone 17 delivered to me at the beach. Imagine the demands on service and service levels in Dubai. Quick commerce has taken over; people want ultra convenience.”

Shoptalk Luxe continues for a third and final day on Thursday.