The Middle East could be one of the fastest growing markets for luxury goods sales in 2023, according to Barclays analysts.
It also outlined that Louis Vuitton Moet Hennessy (EPA:MC) and Richemont would likely emerge as winners given their strong portfolios and brand names.
Burberry, however, could prove to be weaker, but positive feedback on new creative designer Daniel Lee lead Barclays to be optimistic about its part in the sectors potential Middle Eastern-based growth.
Dubai’s suspension of a 30% tax on alcohol sales and the opening of shopping centres in Saudi Arabia mark plans to increase growth and open up the region, something that “bodes well” for luxury retailers, said Barclays.
“We expect the Middle East to be one of the fastest-growing markets for luxury in 2023,” it said.
“Buoyant economic conditions underpinned by high oil prices and favourable demographic trends,” will be needed to boost sales though, among a number of other “catalysts”.
Qatar being able to successfully attract tourists following the World Cup and the return of Chinese holiday makers to the region post-lockdown are some of the factors which will make or break luxury goods sales growth in the region, outlined the bank.