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The growth in the sector is mainly attributed to the ongoing Covid-19 pandemic
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Ounass, a luxury online store, launched in 2016 by Al Tayer Group from the UAE has only added to the growth of the luxury market
Hadeel Karnib
Web-based shopping is enabling further growth of luxury fashion retail in the Middle East especially in the UAE and Saudi Arabia. Dubai has the highest per capita spending on luxury items, followed by Saudi Arabia which has showed moderate growth during 2015-2020, according to a study.
David Macadam, the CEO, and vice-chairman of the Middle East Council of Shopping Centers says that Dubai Mall represents practically half of the trade of luxury merchandise in the city. The luxury fashion sector, he adds, is set to expand further in the region.
The growth in the sector is mainly attributed to the impact of web-based shopping, encouraged by the ongoing Covid-19 pandemic. Shopping through internet platforms saves sufficient time and energy, letting people get on with their day-to-day engagements while buying products online.
Ounass, a luxury online store, launched in 2016 by Al Tayer Group from the UAE has only added to the growth of the luxury market. The platform offers high-end fashion brands from all over the globe and serves customers from the Middle East. The gateway gives a two-hour delivery period to buyers in Dubai.
In Saudi Arabia, IMARC Group anticipates that the market should develop at a CAGR of 6.5 percent during 2021-2026. In recent years, the kingdom has witnessed an increase in the sales of cars and fashion products.
In addition, worldwide extravagance brands, including Prada, Tiffany, and Mulberry, are expanding their presence in Saudi Arabia by setting up mono-brand stores.
“Social media platforms like Facebook and Instagram are ending up being fundamental development drivers for the luxury brands in Saudi Arabia, said Ramez Shehadi, managing director for MENA at Facebook. “Customers are promptly and quickly accepting change, and brands can create inventive and significant computerized encounters with the buyers”.