The city is consolidating its position as a new strategic hub for global luxury, with sales expected to grow by 6% in the GCC countries from 2024 to 2027. The metropolis attracts international brands and customers, with The Dubai Mall registering over 100 million visitors in 2023. Its advantageous geographical location and continued investment in retail help to strengthen its role.
Dubai is increasingly asserting its position as a strategic hub in the global fashion landscape. The city, often considered the heart of luxury among the GCC (Gulf Cooperation Council) countries, has asserted its position even in a context of slowdown in the fashion & luxury industry, attracting high-end brands and customers from all over the world. Suffice it to say that in 2023, the Dubai Mall, the largest shopping center in the world by number of stores, broke all records, with over 100 million visitors from 200 countries. A figure that confirms the centrality of the city of the United Arab Emirates in the retail and luxury sector, with an increasing flow of international customers.
Zegna show in Dubai
Zegna, for example, chose the Dubai Opera House as the venue for its Spring-Summer 2026 fashion show. Chanel, Giorgio Armani, Cavalli (acquired by Emirati Damac in 2019), and Carolina Herrera have also held shows in the city in recent years. It would seem, therefore, that Dubai is confirming its role as an El Dorado for fashion houses in a time of general instability. The numbers also confirm this: Last month, the consulting firm Bain & Co. lowered its forecasts for the entire industry, stating that global sales will likely decrease by 2 to 5% this year, after a 1% decline already in 2024. But the Gulf region is offering a lifeline. According to a recent analysis by the Chalhoub group, a private luxury goods retailer and distributor based in Dubai, the sector’s revenue in GCC countries is expected to rise by an average of 6% from 2024 to 2027.
But what makes Dubai so special?
The city has demonstrated extraordinary resilience in overcoming competition from other regional capitals like Abu Dhabi and Doha, which are also making their mark in the luxury market. Not only has the Dubai Mall maintained its primacy as the most visited shopping center in the world, but the Mall of the Emirates has also seen significant growth thanks to post-pandemic shopping habit changes, with 60% of luxury consumption now occurring locally, compared to the past when Middle Eastern customers used to travel abroad for shopping.
In the Mall of the Emirates, luxury brands like Van Cleef and Arpels are found alongside offerings like Zimmerman and Amiri, or Bottega Veneta and Balenciaga, and Jil Sander, which opened its first store in the mall last April. Also in April, the mall’s owner, Majid Al Futtaim (MAF), announced that it would invest $1.4 billion in a complete renovation and expansion, adding 100 new stores.
Dubai also has a strategic geographical location. It is roughly halfway between Europe and South-East Asia or Sub-Saharan Africa, and is only a two-hour flight from India, making it a prime destination for the global luxury market, with a steady influx of customers from developing countries and emerging economies. This has helped make Dubai a hub for luxury fashion houses, while also attracting the new generation of global shoppers. The city’s fashion scene is further enhanced by events such as Dubai Fashion Week, which has seen the participation of international brands such as Carolina Herrera and Rizman Ruzaini. But that’s not all: Dubai is investing strategically to strengthen its presence in the sector, with the aim of consolidating its status as a creative capital. The city is in fact focusing on fashion as part of its strategy to further develop the economy, which is estimated to contribute 5% of GDP by 2026.
Emerging local brands
The fashion market in Dubai is not only dominated by big international names, but also by local brands and emerging designers who are making waves, such as Michael Cinco, who has gained international visibility thanks to his participation in Fashion Week. The city is therefore trying to combine traditional luxury with innovation, with events and shows that cater to both global brands and local talent.
And although Dubai is facing increasing competition, especially from countries such as Qatar and Saudi Arabia, which are investing heavily in the fashion and retail sector, the city continues to maintain a competitive edge due to its ability to attract investment and talent, thanks also to its business-friendly environment and the presence of an international clientele. With events, strategic operations, and an ecosystem that continues to grow, the city seems set to play an increasingly important role in the international fashion scene. The question now is: will Dubai really be the next fashion capital of the world?
This article was originally published by Maria Martina Ferraro on the Marie Claire Italy website.
Translated and syndicated for Marie Claire Nigeria by Tobi Afolabi
