Is Dubai becoming the luxury capital of the World?
By Tom Alan, An interview about luxury market in Dubai with Alina Dyachenko, September 2nd, 2021, Dubai, United Arab Emirates.
WHY DID LUXURY BRANDS BECOME THE FACE OF DUBAI?
This is my expertise area! Dubai is considered for many as the luxury capital of the World nowadays, having a large concentration of luxury brands per square foot. With the demand growth of about 10% per annum in the luxury market trade, Dubai becomes one of the fastest-growing luxury markets in the Middle East region. It is a major attraction for luxury goods and services due to its high standards of living and its approach that always puts it in an advanced position as a center of the high-end market.
HOW HAS COVID-19 AFFECTED DUBAI’S LUXURY MARKET?
The spending power in the luxury market is divided between tourists and UAE residents. With high standards of living and a strong economy, the UAE’s residents have one of the highest incomes in the World, but despite a strong local market for luxury goods, half of the sales come from tourists.
The pandemic had a major impact on many economic activities and sectors in Dubai. The tourism sector has decreased by more than 80%, where the number of travelers fell down from 80 million to 25 million. This led to a significant reduction in the spending power of luxury brands.
WHAT IS YOUR EXPECTATION FOR THE FUTURE? ARE YOU OPTIMISTIC?
Yes, I am! Dubai has overcome the pandemic; this appears in many economic sectors, including the luxury sector.
The luxury market value was about $10 billion in 2019, while 2020 showed us a big loss; but I expect this year to reach more than $20 billion for several factors, including the end of the pandemic, as well as the increase in the number of international tourists who find Dubai a safe destination away from diseases, conflicts, and wars, and finally because of Expo 2020.
WHAT’S YOUR EXPECTATION OF EXPO 2020?
I think that the economic impact of Expo 2020 on Dubai and the UAE, in general, will be significant for 2021 and the next years and will affect a wide range of sectors, most notably travel, logistics, retail, and real estate. The expected number of Expo’s visitors is about 7 million tourists. Due to that, I expect an immediate increase in sales of luxury brands and services too.
The UAE has recently launched new legislation, policies, and incentive initiatives such as freehold, gold residences, extended visas, etc., aimed at strengthening its position in attracting new investments and visitors from around the World.
TELL US MORE ABOUT YOUR MAGAZINE CHIC ICON AND THE AWARD CEREMONY YOU ARE PREPARING FOR OCTOBER 11TH?
Chic Icon is one of the World’s most recognized digital luxury lifestyle magazines, having 500,000 readers from the UAE, USA, and Europe. I work only with high-end brands and services and am very selective when it comes to content and partners. I have a few departments within the magazine, including events, concierge, SMM, and digital marketing. It’s very significant for me that our HQ is based in the luxury capital of the World – Dubai.
I’m thrilled about our first award event, which is coming on October 11th and will be held in an ultimate luxury secret location in Dubai under the High Patronage of HH Sheikha Fatima bint Hasher Al Maktoum. Also, part of the profit will go to the charity organization of Her Highness “Sawaed Al-Khair” helping women in the UAE.
The Best of 2021 by Chic Icon Awards will be honoring the best companies in the luxury sector in the UAE. Our marketing professionals and honored jury evaluated more than 1,000 brands and services in 10 categories and analyzed the results to give a top list of the best of the best in 2021. The ceremony and gala dinner will go in the presence of 250 selective guests, including Royal Families, UAE’s top managers, and entrepreneurs, and some celebrities. I’m very excited about it!
About Alina Dyachenko:
Alina is the CEO & Founder of Chic Icon Luxury Lifestyle Magazine & Tailored Events. She is an International entrepreneur with 3 MBA degrees and a globe trotter. To know more about Alina Dyachenko and Chic Icon Luxury Lifestyle Magazine visit: https://thechicicon.com/