Dubai tops world as a haven for luxury retail spending

Dubai has topped the world as a haven for luxury retail, a survey showed on Monday.

- Somshankar Bandyopadhyay [e-mail]

For the first time since the global financial crisis, luxury spending has slowed across major cities worldwide. Yet amid this cautious climate, Dubai has emerged as a beacon of resilience, outperforming traditional luxury capitals such as London, Paris, New York, and Singapore, according to Visa’s latest Global Economic Insight report.

About one in nine Dubai residents made a premium purchase each quarter in 2025, a figure that dwarfs comparable metrics in other major cities. This resilience is underpinned by Dubai’s affluent demographic: nearly 37 per cent of households earn more than $150,000 annually, creating a robust base for high-end consumption.

“The momentum we are seeing in Dubai underlines its position as a global luxury hub, supported by a strong base of affluent residents and steady tourism flows,” said Mohamed Bardastani, Visa’s Principal Economist for Central and Eastern Europe, Middle East and Africa. “As new consumers enter the market and wealth passes from one generation to the next, the base of luxury buyers will continue to grow.”