Dubai is the world’s best-performing destination in the luxury sector

The latest “Global Economic Insights” report, issued by “Visa”, the global company specializing in the field of digital payments, showed that shoppers of luxury goods have become more cautious, for the first time since the global financial crisis, indicating a decline in the number of consumers who have purchased luxury goods since the beginning of 2025, after years of continuous growth.

According to the report, the percentage of cardholders purchasing luxury goods decreased in cities such as London, Paris, New York, and Singapore, compared to last year, as a result of factors including: economic challenges, trade disturbances, and exchange rate fluctuations, which negatively affected consumer confidence. However, Dubai was an exception to this global trend, as it maintained a strong demand for luxury goods, until it became the best performing destination in the world in the luxury sector, with one in every nine residents purchasing a luxury good every three months, which is a percentage Far superior to its counterparts in other major cities.

The report explained that this is due to a wide base of wealthy families, with the income of about 37% of the population exceeding $150,000 annually, which supports the continued demand for luxury goods in the city.

The report pointed out that shopping for luxury goods is no longer limited to the super-rich and the elite, who constitute the top 1% of spenders, as Visa data indicates that the appeal of luxury has extended to include broader segments of society, including the wealthy (top 5%), the new wealthy (top 10%), and the upper middle class (top 20%).

Mohammad Bardestani, chief economist at Visa for the Central Europe, Middle East and Africa region, said: “The first half of 2025 showed that even the most confident consumers around the world have become a little more patient, but the prospects for the luxury market in the long term remain promising.”

He added: “The momentum that Dubai is witnessing confirms its established position as a global luxury destination, as it is based on a broad base of high-income residents and a sustainable flow of tourist traffic. With new segments of consumers joining the market and the transfer of wealth from one generation to another, the luxury sector is expected to continue its expansion and continuous growth.”