Luxury brands race to enter UAE as rich relocate in record numbers: Report
Khaled Al Khawaldeh (Abu Dhabi)The UAE is rapidly establishing itself as the leading hub for luxury retail in the Middle East, driven by an influx of high-net-worth individuals, surging consumer demand, and ambitious developments that are transforming the nation's retail landscape, according to the newly released Savills Global Luxury Retail Outlook 2025.According to the report, the UAE recorded the highest net inflow of high-net-worth immigrants globally last year, with 6,700 affluent newcomers relocating to the country. Savills said that this unprecedented migration of wealth is leading to a shift in global brands' perception of the region, elevating it to a priority destination for international luxury brands seeking expansion opportunities.'Set between East and West, the Middle East has become increasingly attractive to brands from across the globe,' said Thea Rowe, Cross-Border Retail Lead, Middle East at Savills Middle East.'With a growing base of affluent residents and strong international visitor reach, it offers a unique opportunity for luxury retail expansion.'The Savills report places Dubai and Abu Dhabi at the top of its Dynamic Wealth Index, which assesses cities based on their appeal to high-net-worth individuals. The report noted that Dubai, in particular, remains one of the most dynamic and high-potential luxury markets worldwide, alongside cities such as Bangkok and Istanbul.The luxury retail boom is complemented by the Middle East's fast-growing food and beverage sector, which Savills projects will more than double in size over the next four years. This sectoral growth is expected to strengthen the overall luxury environment, supporting the development of integrated retail and lifestyle destinations, the report added.However, it also warned that the Middle East's retail landscape requires agility and deep local insight from international brands looking to enter or expand. The report noted that developers in the UAE and Saudi Arabia are increasingly demanding comprehensive financial and conceptual proposals within weeks - a pace that can catch global retailers unprepared.'With limited availability and strong demand, flexibility is critical,' Rowe added.'While protecting brand integrity remains essential, those willing to adapt operationally will be best positioned to secure prime locations.'Retail developers are also accelerating the shift toward experiential, lifestyle-focused retail concepts. While this trend mirrors global patterns, Savills pointed out that it is unfolding at a particularly ambitious scale in the Middle East.
Looking ahead, Savills expects the region's luxury retail momentum to remain strong. The combination of resilient consumer spending, a steady inflow of wealthy residents, and ongoing investments in high-quality luxury real estate makes the UAE especially well-positioned to attract more flagship stores and exclusive boutique developments from the world's leading luxury brands.
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