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19 March 2024

Dubai No. 1 destination for luxury shopping in region

Published
By Staff

In a trend reflected in the UAE, nearly two-thirds (59 per cent) of luxury spenders in the Mena region now choose to spend more of their money on enriching experiences rather than goods, according to a new American Express Middle East Spending Survey.

Both residents in the UAE and across the region were emphatic in their support for Dubai as the ideal place for shopping, ranking it the number one city for luxury shopping in the region.

More than two-thirds of respondents across the Mena region (68 per cent) rank Dubai as the best place to shop, while Abu Dhabi comes second with 19 per cent of the vote.

Among UAE residents, more than three-quarters placed Dubai ahead of every other major capital as the place to shop.

This is markedly different from the results of a similar survey carried out by American Express Middle East in 2012, which showed respondents were most likely to spend their disposable income on tangible items such as high-end fashion and cars.

The American Express Middle East Spending Survey was conducted by YouGov across the Mena region. It revealed that overall regional spending on luxury experiences and goods is set to grow in the next 12 months with the majority of respondents expecting to spend more on luxury in 2015.

In the UAE specifically, 33 per cent of respondents expect to spend more on luxury goods and services in the coming months.

Looking at where UAE residents focus their spending, 59 per cent prioritise luxury experiences compared to 41 per cent who focus on luxury goods. Almost half of respondents in the UAE (47 per cent) ranked holidays as their top luxury experience, 45 per cent said social calendar events and 35 per cent said fine dining.

Their preference for social calendar events such as sports events and motor racing is almost at par with the regional average of 47 per cent and the majority of UAE residents (64 per cent) say the main reasons that they enjoy spending on luxury experiences is to be entertained, relax and for personal wellbeing.

Commenting on the results, Mazin Khoury, CEO of American Express Middle East, said: “The UAE is demonstrating robust spending on luxury goods and experiences, reflecting an overall regional trend which sees the majority of high earners planning to spend the same or more on luxury in 2015.

“Over recent years, though, we’ve seen a major shift in the way people spend and make luxury purchases and investments as they increasingly prioritise buying luxury experiences, and the memories that go with them. For UAE consumers, the personal fulfilment gained from a holiday or the special experience of attending a major sporting event creates the enriching moments which are increasingly regarded as the most valuable when it comes to luxury spending.”

While UAE residents are increasingly favouring spending on holiday experiences they nonetheless still enjoy the experience of luxury shopping such as fashion, designer-wear, jewellery and high end electronics. In fact, 87 per cent – second only to Lebanon – prefer the experience of in-store shopping when buying luxury goods, rather than buying goods online. The main reason cited by respondents is that they use the opportunity to physically examine the goods and check the quality, an important consideration in the purchase of luxury goods.

“Our Survey shows that increasingly UAE residents’ luxury spending is set to take them abroad for holidays, to the race track for a motor racing event or to a top new restaurant. Overall, luxury spending on both goods and services is set to remain strong during the remainder of 2014 and 2015, and this supports the trends we’ve seen in the first half of 2014 which shows a significant increase in card member spending,” added Khoury.