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LVMH Moet Hennessy Louis Vuitton SE, the owner of Louis Vuitton and Christian Dior, and Richemont, which makes Cartier jewelry and watches, will be beneficiaries of the Middle East’s luxury growth, according to the broker.
“The broad outlook for the region remains much more positive than for western economies, with GDP growth forecasts being revised up at a time of downward revisions for most countries globally,” analysts including Yasmin Clark and Carole Madjo said in a research note on Friday.
Dubai has seen its gross domestic product rise an annual 4.6 per cent during the first nine months of 2022 and drew nearly 13 million tourists up until November. Dubai also intends to increase its spending and focus on priority sectors, among them luxury and leisure.
Within the region, Barclays sees the most opportunity in Saudi Arabia, where luxury brands only have a small presence. The analysts also highlighted the prospect of Qatar attracting tourists for events such as the Qatar Grand Prix and the AFC Asian Cup since the 2022 FIFA World Cup, a potential return of Chinese tourists to the UAE, and the opening of a new luxury mall in Riyadh as potential catalysts that could bolster luxury sales in the region.
According to Barclays, the Middle East is set to account for 8 per cent of luxury goods sales globally by 2030, up from 5 per cent currently.
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