What: According to a survey conducted by Boston Consulting Group, the Middle East is expected to double in size by 2030 and grow to EUR 30 billion to EUR 35 billion.

Why it is important: The Middle East is becoming a new frontier of luxury with Saudi Arabia and the UAE becoming lucrative markets for Western luxury labels. The majority of labels looking to enter the Saudi market are partnering with the Chalhoub Group.

The Middle Eastern luxury goods market, currently estimated at EUR 15 billion, is expected to double in size by 2030, growing up to EUR 35 billion.

Reports from Altagamma and McKinsey confirm these expectations, with an estimation that the Middle East is the market with the highest growth potential.

Factors contributing to this growth include the region's increasing appeal due to geopolitical tensions, the influx of wealthy individuals from China and Russia, and Saudi Arabia's efforts to modernise and diversify its economy through luxury tourism

Saudi Arabia is especially expected to be a lucrative market, as it has been developing commercial spaces dedicated to luxury and is one of the few countries with virgin territory. The country is expected to EUR 6 billion in terms of luxury goods sales by the end of the decade.

Western luxury labels who are looking to enter the market have been joining forces with Chaloub Group, one of the Middle East’s leading distributors of luxury brands.

Middle East luxury market to double in size by 2030, says BCG