Inside the Fashion Opportunity in Dubai

The city of Dubai, situated in the United Arab Emirates (UAE), is celebrated for its cosmopolitan community that fuses historic Arab culture with global influences and the radically new and innovative.

Its rapidly growing population is predominantly made up of expatriates (expats) attracted to the city’s strong economic growth and promising career prospects. Along with the city’s thriving tourism trade, Dubai presents global fashion brands and retailers with significant opportunities to connect with an expanding international consumer base.

Dubai’s government is also striving to deliver the city’s ambitious economic agenda, D33, with aspirations to double its GDP between 2023 and 2033. It seeks to achieve this by bolstering industries like fashion and retail, as well as building out the infrastructure required to allow these markets to thrive.

International businesses are expanding their presence in the city to capitalise on its rapid development and maximise their proximity to Dubai’s increasingly prosperous consumer base, as well as those in its neighbouring countries in the Gulf Cooperation Council (GCC): the Kingdom of Saudi Arabia (Saudi), Bahrain, Kuwait, Oman and Qatar.

“Dubai is a truly global city. It is strategically located as the gateway of the Middle East and North Africa (MENA) and beyond. It’s a metropolitan city, so it makes sense given the fashion offering represented in Dubai, that it’s the fashion capital for the region,” says Khadija Al Bastaki, senior vice president of Dubai Design District (d3) — a business hub for design, art and creativity in the city.

As The Business of Fashion’s analysis finds, Dubai’s fashion industry is proving resilient despite wider market uncertainty. The UAE apparel market is forecast to outpace regional and global competitors with a 5 percent forecast compound annual growth rate (CAGR) for 2024 to 2030, according to Euromonitor International. For comparison, the global apparel industry’s projected CAGR is 3.7 percent over the same period.

“The Dubai fashion market is one of impressive growth and potential for global creative industries, propelled forward by the city’s rapid development and nurturing of regional and international brands and businesses,” says Nick Blunden, president of BoF. “BoF continues to follow the impressive trajectory and subsequent opportunities in the city and the wider Gulf region, increasing our presence and coverage as a result, with exciting activations in the pipeline for 2025.”

In partnership with d3 — a part of TECOM Group, which operates an ecosystem of sector-focused business districts championing education and innovation — the objective of this paper is to equip the international fashion industry with strategic insight and advice on the creative and commercial opportunities in Dubai today.

This paper includes exclusive, proprietary data and analysis from a survey conducted by d3 and BoF Insights — BoF’s data and analysis think tank — of more than 1,000 residents in Dubai. The survey, conducted in June 2024, was designed to better understand consumer expectations, behaviour and on-the- ground experiences within the city.

For example, residents in the d3 x BoF Insights survey expect to lean further into the luxury fashion category in the near future. An impressive 55 percent of respondents selected luxury apparel, accessories and footwear as an expected top-five discretionary spend outlet for them in the next three years.

“In partnership with d3, BoF presents thorough research into the fashion market in Dubai — informed by exclusive data on consumer behaviour and trends, as expressed by the residents of Dubai themselves,” says Blunden.

“These findings, analysed alongside expert commentary and advice on how brands can leverage these consumer trends and behaviours, will equip the global industry with a toolkit to authentically resonate with the city’s residents and global visitors, and wider business opportunities in the city and Gulf region,” he adds.

This paper combines expert insights from independent consultants, academics, and brand and retail executives, reflecting both regional and global perspectives.

A Wider Lens on Dubai’s Fashion Market and Consumer Base

The macro-economic landscape continues to challenge the fashion and luxury industries in 2025. This is in part driven by an underperforming Chinese market, and ongoing economic uncertainty and political upheavals in major economies like the US, and Germany, the UK and France in Europe.

Within this market context, Dubai and the UAE is proving to be a resilient economy. The UAE’s gross domestic product (GDP) of US$545 billion was forecast to have an annual growth of 4 percent in 2024, according to the International Monetary Fund.

This section first looks at Dubai’s market context on a global scale. It explores why brands and retailers have identified Dubai as their base from which they can expand activity in the region. It also provides an overview of Dubai’s fashion retail landscape to help global brands better understand the city’s current offering.

With a wider lens on the Dubai consumer base, this section also dives into the demographic makeup of the city’s residential and touristic population, challenging consumer stereotypes in the region. It offers insight into how and why success in this market relies upon delivering world-class experience and global benchmarking.

A Resilient Fashion Market Amid Global Uncertainty

The fashion industry in Dubai and the UAE is booming, driven in part by its strong standing as a cultural activity among residents. The d3 x BoF Insights survey saw 50 percent of overall respondents, and 65 percent of women respondents, indicate that “fashion” is one of their top three preferred creative and cultural attractions to engage with in Dubai.

The latest data from Euromonitor International currently places the UAE as the second-largest apparel market in the GCC, representing 36.8 percent of total apparel sales in the region in 2024, behind only Saudi Arabia. However, the UAE is forecast to slightly outpace Saudi’s growth in the years ahead, with a 5 percent forecast CAGR between 2024 and 2030 (versus a 4.8 percent forecast CAGR for Saudi). It will significantly outpace the global apparel industry’s projected CAGR of 3.7 percent over the same period.

The UAE’s luxury market is also expected to accelerate in growth in the years ahead — at a CAGR of 3.0 percent to 2030 — and the country boasts the largest footwear market in the GCC.

This projected growth comes at a pivotal time as fashion businesses look to identify new and resilient markets. The fashion and luxury industries have experienced significant challenges with the recent slump in Western Europe and an underperforming Chinese market. The latter’s GDP growth is projected to decelerate sharply, with Euromonitor placing China’s apparel industry CAGR forecast at just 0.6 percent from 2024 to 2030.

There is further uncertainty around China’s recovery with Donald Trump’s return to the White House. At time of writing, President Trump has proposed heightened tariffs on imported goods, with the greatest tariff rate levelled at China. Many US companies will likely respond through price hikes, which could harm consumer spending by US$50 billion a year, according to the National Retail Federation.

The US presidential race was one of 2024’s defining elections in a year where a historically large proportion of the global population voted. For many, this was the first election since the COVID-19 pandemic. Many countries are still struggling with aftereffects of the health and socio-economic crises of COVID-19. By contrast, the UAE achieved one of the fastest vaccine roll-outs and uptakes globally, with just one three-week lockdown in Dubai. In 2021, the city was able to host the prestigious six-month World Expo, with brands like Chanel and Giorgio Armani taking part.

Perhaps unsurprisingly, when global fashion executives looked to resilient markets in 2024, 51 percent of those surveyed for BoF and McKinsey & Company’s The State of Fashion 2024 report said the Middle East was the most promising region compared to the year prior — the region that received the most positive response.

The GCC continues to demonstrate economic resilience, with governments focused on building out the residential and business opportunities, exemplified through the Dubai Economic Agenda, or D33. This is a multi-tiered economic plan to bolster industries and infrastructure within the city, to drive sustainable economic growth and double GDP between 2023 and 2033. The agenda details its purpose of making Dubai “the fastest, safest and most connected city in the world”.

Dubai has seen rapid population growth — projected to increase by 7.5 percent from 3.6 to 4 million between 2024 and 2026, according to S&P analysts. They attribute this growth to the inflow of working professionals looking for better job opportunities and investors wanting to cash in on high returns from the growing economy. Individuals also benefit from no personal income tax in the UAE.

In the d3 x BoF Insights survey, the city achieved the highest score among respondents with regards to its role as a place that fosters creative talent and entrepreneurs, in comparison to neighbouring cities like Abu Dhabi, Doha, Riyadh, Manama, Muscat and Kuwait City.

Workplace research firm Gallup’s State of the Global Workplace report in 2024 also found that 69 percent of UAE employees believe 2024 was a good year to find a new job. These employees believe they are growing better than their regional and global peers in their profession.

A Strategically Positioned Business Hub

In order to capitalise on the business opportunity in the GCC, fashion companies are vying for an increased presence and reach in the region. Many have identified Dubai — the biggest trade hub in the Middle East, and strategically located logistical gateway to the Middle Eastern, African and Asian markets — as the location from which they can expand developments and activity in the region.

For one, French conglomerate Kering — owner of luxury maisons including Gucci, Saint Laurent, Alexander McQueen and Bottega Veneta — created the position of president of Kering Middle East and Africa at the beginning of 2023. This role is designed “to support and to aid the structure of the long-term development of our houses within the region,” Miral Youssef, who has held the role since its inception, told BoF.

To further optimise its position in the region, Kering opened its offices in Dubai Design District, or d3 — an area of the city that is recognised as the leading neighbourhood for brands and businesses within the art, design and fashion industries. It is the first and largest design district in the GCC, with a variety of retail and creative spaces, corporate offices and events. With more than 1,100 customers and 20,000 creative professionals, d3 is also home to regional conglomerates like Chalhoub Group and teams at Chanel, Adidas, Asics, Puig and Sephora, whose offices sit alongside co-working spaces for emerging brands.

The standards we have set in Dubai are even higher than western counterparts.

—  Jacob Abrian, Co-Founder and CEO of Arab Fashion Council

D3 is the force behind some of the biggest fashion, cultural and retail events in the city — from the annual trade show and culture festival, Sole DXB, to the region’s largest creative festival, Dubai Design Week. In partnership with the Arab Fashion Council, d3 is also evolving Dubai Fashion Week (formerly Arab Fashion Week) into one of global prestige.

“A decade ago, no one [in the region] understood what fashion week was,” says Jacob Abrian, co-founder and CEO of Arab Fashion Council. “There [were] fashion events, but […] they used to happen without vision or standards, [which was] very difficult for brands to trust […]. This trust has now been established. The standards we have set in Dubai are even higher than Western counterparts.”

Its roster of talent for years remained relatively localised, with brands such as Michael Cinco and The Giving Movement showcasing alongside up-and-coming labels like Bazaza, Pipatchara and Dima Ayad. Today, however, the event is drawing international household names. Carolina Herrera hosted a runway show in September 2023 and Roberto Cavalli closed out the Spring/Summer 2025 shows.

Delivering World-Leading Customer Experience

Dubai is globally recognised for its world-leading retail, which is considered a lifestyle boon by its residents. Dubai achieved the highest score from the d3 x BoF Insights survey with regards to their perception of its fashion offerings and experiences in comparison to neighbouring cities.

Its retail offering is also a key contributor towards its booming tourism trade. The city received over 16.7 million overnight visitors between January and November 2024. This is a 9 percent increase on the same period the year before and overtaking pre-pandemic levels, according to Dubai’s Department of Economy and Tourism. The UAE’s Ministry of Economy last reported the total spending of international tourists in 2022 amounted to over US$32 billion.

Popular retail locations among residents include Dubai Hills Mall, Atlantis Mall and City Walk, an outside shopping leisure area. However, the frontrunners for footfall and activity are indisputably Dubai Mall and the Mall of the Emirates, drawing a substantial amount of tourism expenditure. Ninety-nine percent of travellers to Dubai visit the Dubai Mall and 78 percent of visitors state the purpose of their visit is leisure, according to the Dubai Department of Economy and Tourism’s 2023 annual report.

Dubai Mall is the second largest in the world by total land area. The mall owner, property developer Emaar, announced that Dubai Mall received 57 million visitors in the first half of 2024 — an 8 percent increase from the same time last year. Meanwhile, the Mall of the Emirates, owned by Majid Al Futtaim, saw its revenue grow by 20 percent year-on-year in 2023 to nearly US$2 billion. The company’s year-end report attributes this to “record-breaking footfall and higher occupancy rates benefitting UAE-based malls”.

Fashion is only one aspect of the expansive mall offering, designed to cater to an array of consumer expectations. Leading culinary options are also on offer, from the likes of Eugène Eugène, Parker’s, Salt and Angelina Paris. Then, entertainment options range from cinemas and bowling alleys to aquariums, ice rinks and indoor ski slopes.

“It’s the mall that is the destination, not the shop,” says Ingie Chalhoub, founder and CEO of Etoile Group, which operates more than 40 boutiques across seven countries in the region, including luxury brands such as Chanel, Etro, Ralph Lauren, Valentino, Tod’s and Aquazzura.

With shopping malls’ own exceptional offering for visitors, competition is rife for vendors looking to stand out. They must prioritise aspects like exceptional service and differentiated product offerings to meet consumer expectations. The d3 x BoF Insights survey found aspects like customer service, a wide assortment of products and access to international fashion brands are all key factors when residents choose a location to shop for fashion products.

“High quality, personalised service experience is vital in this part of the region,” says Al Bastaki.

“What [consumers] are looking for is ultra-localised personalisation, but it also needs to have a global recognition,” adds Youssef. She recommends offering “early product access, capsules and, from an experiential standpoint, ensuring that the stores have VIC rooms, apartments and suites,” which Kering have integrated within some brand flagship stores in Dubai.

Indeed, Gucci to Louis Vuitton have created salon concepts that provide exclusive product ranges and personalised clienteling services. Loro Piana re-opened its store in Dubai Mall in 2023 following extensive renovation — it was the first in the world to showcase the new Loro Piana concept and exclusive VIP client lounges.

What [consumers] are looking for is ultra-localised personalisation, but it also needs to have a global recognition.

—  Miral Youssef, MEA President of Kering

“These consumers expect international brands to provide exclusive, region- specific merchandise, personalised VIP services, and exclusive in-store events and experiences that match international standards,” a brand director at a leading fashion group previously told BoF under the condition of anonymity.

While digital retail is still a relatively new phenomenon in the GCC, it picked up momentum during the COVID-19 pandemic and is now experiencing exceptional growth. So much so that, in the d3 x BoF Insights survey, Dubai residents revealed multi-brand websites like Ounass and Noon to be their preferred shopping channels across wealth brackets.

“The Middle East is always a late but a fast adopter. […] So what you see is the pace of growth of the online channel in the Gulf is among the fastest on a geographic level worldwide on an e-comm basis,” Khalid Al Tayer, CEO of luxury e-commerce giant Ounass, owned by UAE multi-division conglomerate Al Tayer Group, shared with BoF’s founder and CEO Imran Amed in Al Tayer’s first public interview last year.

As a result, many brands have pivoted to becoming omnichannel, says Fahed Ghanim, CEO of Majid Al Futtaim Lifestyle, which operates more than 70 stores and 22 digital platforms across six markets in the Middle East. The company holds exclusive licensing rights for the likes of Lululemon, Lego, Abercrombie & Fitch, AllSaints, Shiseido and more, as well as operating THAT, a multi-brand concept store and app.

These brands, he explains, are seeking to provide “convenience, information and flexibility for customers to choose where they like to transact, at the convenience of their home on their sofa or to browse and then come and pick up from store.”

Dubai residents prioritise convenience (37 percent) and customer service (35 percent) as the two most important factors after price (54 percent) when choosing a retail destination for shopping, according to the d3 x BoF Insights survey. As a result, baking omnichannel services into a brand’s retail offering is no longer a point of difference but a critical must- have.

“A lot of people want to just shop on Ounass and they don’t want to go back and forth with an emerging brand and [our] logistics — we can’t compete,” Stephanie Skourti told BoF. Skourti is co-founder and business lead of Nafsika Skourti, a Dubai-based womenswear brand whose distribution partners include Ounass and Harvey Nichols Dubai alongside its own website and retail pop-ups.

With this in mind, the brand considers their sales strategy carefully so as not to cannibalise their different channels: when hosting pop-ups, for example, Skourti will showcase dresses for sale through her wholesale partners, allowing consumers to try them on, but she directs clientele to purchase through these alternative platforms.

Challenging Consumer Stereotypes in the Gulf

For the fashion brands looking to enter or expand their presence in the region, they should first seek to understand the immensely varied consumer profiles across Dubai’s residential and touristic population, as well as the wider GCC.

For example, among the tens of millions of tourists that travel to Dubai, Western Europe is one of the biggest origin points of international visitors, with over 1.1 million arrivals (22 percent overall share) in 2024. This was followed by South Asia with 869,000 visitors (17 percent). The Commonwealth of Independent States and Eastern Europe accounted for 16 percent, the GCC and MENA 13 percent and 12 percent respectively, followed by North-East Asia, South-East Asia, the Americas, Africa and Australasia, according to the Emirates News Agency.

Dubai’s residents are similarly globally diverse, with expats making up the vast majority of its population. “From the Russian community to the Levant community to the UAE community to the Indian community, there’s just a wide range of people who live there,” says Skourti — a Dubai-based Greek-Palestinian who founded Nafsika Skourti with her sister, the brand’s namesake, in Amman, Jordan, in 2014.

The brand had already established an international consumer base before moving to Dubai. However, the relocation offered the co-founders access to “a wider range of customers and demographics.”

However, international businesses often speak of the “Middle Eastern” consumer cohort without distinguishing the expanse of identities that make up these markets — another way in which brands can quickly alienate the consumer base.

“People coming from the US, Europe, they put us all in the same melting pot, whether it’s customers from Kuwait, Bahrain, Riyadh, Jeddah — even Riyadh and Jeddah are not the same customers. Dubai and Abu Dhabi don’t have the same customers,” says Chalhoub.

Demographics vary significantly across countries in the GCC. For instance, Saudi is the largest country in terms of population size by a wide margin, with 32.6 million residents. The UAE is closer to 9.6 million, while the remaining countries range from 4.8 million (Kuwait) to 1.5 million (Bahrain), according to Euromonitor population data for 2023.

Nearly 44 percent of Saudis are under the age of 30, whereas some 33 percent of UAE residents are under the age of 30, skewing the average age slightly older. Saudi has a relatively even split between men and women; in the UAE, men account for two-thirds of the population. The majority of Saudi and Oman residents are nationals, whereas expats make up the majority of the UAE and Qatari populations.

With that in mind, Skourti advises caution when navigating the swathes of consumer profiles present in Dubai’s international consumer base. “You have to think about which customer you want to target and […] how you’re going to reach them, because there are so many different profiles,” she says.

Fashion companies should also avoid generalisations of socio-economic backgrounds in the region, with many equating Gulf consumers as an all-wealthy, luxury-focused clientele. Indeed, there are currently more than 202,000 US-dollar millionaires in the UAE, according to UBS’ Global Wealth Report 2024. This figure is also projected to increase 15 percent by 2028. Dubai’s luxury retail offering of course also draws in a wealthy touristic clientele from around the world.

You have to think about which customer you want to target and […] how you’re going to reach them, because there are so many different profiles.

—  Stephanie Skourti, Co-Founder and Managing Director of Nafsika Skourti

However, the d3 x BoF Insights survey revealed only 20 percent of Dubai households generate an income of around US$100,000 per annum or more, which is approximately US$8,100 a month. The largest consumer cohort, at 45 percent of survey respondents, earns up to US$2,700, or AED 10,000, while 35 percent earns between US$2,700 and US$8,100 a month, or AED 10,000 and 30,000.

“When people think about the Middle East, and particularly Saudi Arabia and the UAE, they often think about the high-net-worth and ultra-high-net- worth consumers. Those are not the only consumers,” says Gemma D’Auria, senior partner at McKinsey & Co. and global leader of the management consultancy’s apparel, fashion and luxury practice. “There is a reason why brands like Landmark Apparel are doing super well — by targeting the value segment.”

In fact, the d3 x BoF Insights survey respondents with an annual income of over US$100,000 demonstrate shopping habits that mirror their less wealthy contemporaries: multi-brand websites like Ounass (which stocks luxury fashion) and Noon (which stocks mass-market brands) are the most popular avenues for expenditure. This is closely followed by fast-fashion brands’ — both in-person and online — ahead of multi-brand department stores, luxury brands’ stores and their e-commerce sites.

While many consumers might have the discretionary spend for luxury products, they are “not always going to [want] uber-luxury brands. They want to have a casual life,” says Al Tayer.

There exists an appetite for mass-market and fast-fashion brands, despite associations with poor design, quality, and their environmental and social impact. This consumer behaviour is also at odds with the reported uptake in sustainability concerns among younger generations in the region: a Majid Al Futtaim report notes that 98 percent of Arab youth say they have made environmentally conscious lifestyle choices over the past year. In fact, this behaviour is fuelling a booming second-hand market, with luxury re-commerce in the Gulf region expected to hit a value as high as $780 million by 2026, up nearly 60 percent compared to 2022, according to Dubai-based luxury retail giant Chalhoub Group.

However, this consumer behaviour also demonstrates the demand for competitive pricing across segments — and reflects the global consumer prioritisation of price over arguably more sustainable choices.

As Sergio Azzolari, CEO of Italian luxury house Roberto Cavalli, explains: “The biggest chunk of the clientele, which makes the vast majority of the luxury buyers in the Middle East, is pretty mainstream. They buy accessories because they still consider it a status symbol.” He argues that this clientele is focused on “entry points into brands.”

As a result, brands should not assume luxury products and higher price point items are the main focus for consumer cohorts across income categories. They should ensure a variety of price points and entry-level options to meet consumer behaviour.

Benchmarking on a Global Scale

Brands need to account for a more informed, discerning consumer base in Dubai, who has an increasingly global means of benchmarking products, price, offerings and experiences — or risk quickly ostracising this cohort.

The regional rise in social media usage and the global connectedness of social platforms play a key role in consumers’ benchmarking. The d3 x BoF Insights survey revealed local social media creators and/or influencers are the primary source of inspiration for fashion purchases for about 45 percent of Dubai residents. However, this is closely followed by international creators or influencers, which sits at 35 percent.

“This is an ultra-connected part of the world,” says D’Auria. “They are extremely attuned to what’s happening in the US, in Europe, in Asia. They are on TikTok. They are on [Instagram].”

The UAE boasts one of the highest smartphone penetration rates globally, with Euromonitor data reporting nearly 98 percent of the population own a smartphone. For comparison, France sits at about 75 percent; the UK at over 80 percent; the US at 90 percent.

“[A] high internet penetration rate and a large, tech-savvy youth population means a consumer base that is connected with global trends and wants to be part of the global conversation,” says Al Bastaki.

With the city a nexus of global communities, this also heavily influences the global reference points of its consumer base — driven by the sheer volume of international tourists and the constantly growing multinational, multicultural population.

The d3 x BoF Insights survey found that 40 percent of 18-24 year olds have lived in Dubai for just three years or less‚ meaning these younger residents are likely bringing with them lived experiences and expectations from an expanse of global markets. As a result, fashion brands and their executives must evaluate on, and level their offering with, the international stage — because their consumers do.

Consumers want to support home-grown brands. If it’s a Lebanese home-grown brand started in Dubai, the Lebanese community and the Arab consumers will support the brand.

—  Khadija Al Bastaki, Senior Vice President, Dubai Design District (d3)

“Our competition is not regional — we benchmark against the world,” says Ghanim. “We don’t look at what’s happening next door in the mall — we look at the best practice and the best stores, the best websites, around the world. That’s what our customer is exposed to. How can we offer them, bare minimum, the same?”

“[Your brand] has to cater for a local [consumer] with a global vision,” adds Chalhoub.

Dubai residents are mostly content with the fashion retail offering available to them, as reflected in their spending patterns. Most purchases by Dubai residents are made locally, according to the d3 x BoF Insights survey. A third of residents indicated that more than 50 percent of their total fashion spend in the last 12 months took place in Dubai.

Luxury consumers in the UAE previously often travelled to shop pre-COVID-19, purchasing 30 to 40 percent of their luxury goods outside the region, according to consultancy Bain & Company. The pandemic saw shopping repatriated — a practice that has stayed. The State of Fashion 2023 report found that over 60 percent of luxury spending occurs domestically in the Middle East.

Summary

Dubai’s fashion industry is proving resilient despite global market uncertainty and instability, and businesses looking for markets of opportunity will find a city of potential. It is strategically positioned as a hub from which to expand into the wider Gulf region and its consumer demographics cement the city’s status as a cosmopolitan hub of local and visiting customers, as well as talent and professionals.

The city is undergoing rapid transformation and investment across its world-leading retail offering, and consumers are expecting ultra-localised personalisation, early product access, capsule collections and exceptional customer service, as well as omnichannel services for heightened convenience.

Dive into the white paper, Inside the Fashion Opportunity in Dubai, to learn more about the infrastructural shifts and subsequent opportunities in its logistics and talent hub. Plus, glean insights from the consumer trends and cultural opportunities that fashion brands and retailers should tap today.

This is a sponsored feature paid for by Dubai Design District as part of a BoF partnership.