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19.09.2025

Luxury Fashion Thrives in UAE and KSA Markets

Illustration for: Luxury Fashion Thrives in UAE and KSA Markets

With the international fashion calendar buzzing as spring/summer 2026 collections hit European runways this weekend, the luxury industry’s focus is shifting closer to home. As global high-end brands face challenges, the Gulf states, particularly the UAE and KSA, are striving to balance declining sales.

Next Tuesday marks the start of Milan Fashion Week, featuring ex-Balenciaga designer Demna’s debut at Gucci. However, savvy fashion executives are eyeing the regional festivities for Saudi National Day (Sep 23) to honor and engage luxury’s most loyal clientele.

A survey by Business of Fashion and McKinsey & Co revealed that 51% of global fashion executives view the Middle East as the most resilient market.

Whether Demna’s Gucci collection includes green hues or not, on Tuesday, streets from Jeddah to Riyadh will be alive with Saudis in patriotic green, celebrating with flags and festivities.

Saudi Arabia leads regional apparel sales, projected to hit nearly $18 billion (Dh66 billion) this year, according to Statista Market Insights. The UAE follows closely, expected to reach nearly $11 billion (Dh40 billion) in apparel sales.

Euromonitor forecasts the UAE will slightly outpace Saudi growth, with a 5% annual rise through 2030, compared to Saudi’s 4.8%. Both far exceed the global apparel market’s forecasted 3.7% growth, while China’s apparel sector anticipates just 0.6% annually until 2030.

Despite being a small global market, UAE and KSA consumers significantly support luxury demand. Dubai’s diverse population and KSA’s young, ambitious citizens crave fashion that complements their lifestyles.

“Brands must speak the consumer’s language; even minor nuances can impact market penetration,” says Marriam Mossalli, founder of Niche Arabia.

In beauty, this might mean Asteri cosmetics, with its desert-proof lipsticks in emerald cases. Fashion brands must connect with style tribes, both literally and culturally. Consider the aesthetic shifts in Saudi, like the ‘Hejazi vs. Najdi’ styles, which Mossalli compares to Cali’s laidback look versus New York’s smart casual, seen in Saudi’s Red Sea cities versus its central hubs.

While Demna introduces his vision for Gucci, young Saudis may be equally drawn to Yataghan’s jewelry line. Launched at Riyadh Fashion Week, Yataghan’s ‘Turathi’ collection features ‘Love Saudi’ engravings and signature emeralds, making it a patriotic purchase.