Expensive habits

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Wealth in the Middle East is a relatively new phenomenon and, as a result, consumers tend to put their luxury possessions on display. The appeal of luxury goods – be they cars, yachts or beauty products – has risen steadily in the region. How did this happen?

The development of the oil industry in the 1960s led to wealth filtering across the Gulf. Urbanisation followed and, increasingly, nations around the Middle East embraced western-style consumption habits. The need to possess and show off your wealth stimulated the expansion of the luxury industry – one of the fastest growing in the world. 

So how has this segment in the Middle East developed? Many factors influence the changing face of the luxury-goods audience in the region today. Among them is the large disparity in demographics between countries – tipped largely towards youth – and booming economies giving rise to a larger middle class, representing higher levels of disposable income available ...