The Gulf Redraws the Global Luxury Map

The luxury ecosystem in the Middle East is entering a new phase of strategic maturity. Dubai and Saudi Arabia are accelerating large-scale investments that no longer chase volume alone, but focus on cultural relevance, immersive experience and global positioning. The outcome is a consumption and hospitality landscape that blends retail, lifestyle, wellness and premium real estate with a long-term vision.

Dubai: From Shopping Mall to Lifestyle Destination

Majid Al Futtaim has unveiled a comprehensive transformation of Mall of the Emirates, backed by an investment of AED 5 billion aimed at turning one of the world’s most iconic retail assets into a fully integrated experience hub. The project adds around 20,000 sqm of space, introduces close to 100 new stores, and places strong emphasis on wellness, culture and advanced gastronomy.

The strategy is clear: move beyond transactional retail toward an ecosystem of quality time, where visitors do more than shop—they stay, engage and connect. Dedicated budgets for operational and technological upgrades further enhance efficiency and personalization across the customer journey. Dubai strengthens its role as a testing ground for the future of retail, anticipating a global consumer that is more discerning and less predictable.

Saudi Arabia: Luxury, Global Branding and Urban Ambition

In Saudi Arabia, urban transformation is supported by high-profile partnerships. Developer Dar Global, in collaboration with the Trump Organization, is advancing two luxury developments in Riyadh and Jeddah, with a shared investment approaching USD 10 billion through 2026.

These mixed-use destinations bring together high-end residences, hotels, curated retail, selective leisure and golf facilities, aligning with the Kingdom’s diversification agenda. In Jeddah, the Trump Plaza project is positioned as a magnet for international residents, investors and premium travelers, reinforcing the Red Sea coast as a hub for capital and talent.

Beyond branding, these developments show a broader urban ambition: to create self-contained, connected and recognizable districts capable of competing with established luxury capitals.

Luxury Retail: Selective Expansion and Experience-Led Growth

As mega-projects take shape, specialized retail players are refining their approach. Chalhoub Group, a cornerstone of luxury retail in the region, has opened new offices in Abu Dhabi and plans 23 store openings by 2026. The group is doubling down on brands with strong narratives and formats that merge service, community and technology.

Expansion is not about square footage alone, but about precise curation and environments where long-term relationships with clients are cultivated. Regional luxury positions itself as a bridge between global brands and local sensibilities, grounded in a deep understanding of the Gulf consumer.

A New Luxury Cartography

What unites these initiatives is a shared outlook: luxury as an experience platform, not merely a showcase. Retail, hospitality and real estate converge to create destinations that deliver sustained attraction, economic resilience and international visibility.

Looking toward 2026, the Middle East will not only draw investment—it will set benchmarks. Dubai and Saudi Arabia are advancing models where architecture, culture and consumption interact seamlessly, reshaping how and where luxury is lived in the 21st century.