Fashion retail in the GCC is thriving, fueled by economic strength, global attention, and evolving consumer preferences. Currently valued at $ 85 Bn, the market is expected to grow at a steady 7% CAGR, reaching $ 127 Bn by 2030. Together, the UAE and KSA account for nearly 80% of the total market, highlighting their central role in shaping regional retail trends.
In this article, we break down three major shifts that are redefining fashion retail in the region:
- Fashion Retail in GCC: A $ 127 Bn Opportunity by 2030
- Online Fashion: Racing Ahead with 25% Share by 2030
- Cross-Border Marketplaces Are Challenging Incumbents
Fashion Retail in GCC: A $ 127 Bn Opportunity by 2030
The fashion market across the GCC has seen consistent growth from 2019 to 2024 and is on track to continue this upward trajectory through 2030. This growth is being driven by a combination of increasing affluence, rising tourism, and the region’s growing cultural footprint.
As the number of high-net-worth individuals expands, the appetite for luxury fashion continues to deepen. Tourism, particularly in the UAE, plays a critical role as global visitors contribute significantly to fashion spending across malls and retail hubs.
Additionally, the region’s rising profile in hosting major sports and entertainment events — from international tournaments to concerts and cultural festivals — is creating new occasions for fashion consumption, driving higher frequency and broader category engagement.
Online Fashion: Racing Ahead with 25% Share by 2030
Online fashion retail is becoming an increasingly important part of the GCC consumer journey. As of 2024, online channels make up around 18% of total fashion spend, with this share expected to reach nearly a quarter of the market by 2030.
This acceleration is powered by a digitally native audience that turns to online platforms not just for convenience, but for inspiration. Social commerce and influencer-led content on platforms like Instagram, TikTok, and Snapchat have become powerful drivers of discovery.
Consumers today expect quick deliveries, and investments in logistics and last-mile infrastructure are helping retailers meet these expectations. At the heart of this shift is the Gen Z consumer — digital-first, trend-conscious, and highly engaged online — who is redefining how and where fashion is consumed.
Cross-Border Trade: Holding Strong with 25–30% Share of Online Fashion
Global fashion platforms like SHEIN, Temu, and Trendyol have rapidly expanded their footprint across the GCC, offering consumers a compelling value proposition through competitive pricing, extensive assortment, and trend-led design.
Today, cross-border trade accounts for approximately 25–30% of online fashion purchases in the region — a sizable and stable share that reflects the strength of these international players. While it may be difficult for local retailers to match their pricing, there is an opportunity to differentiate through other levers. Brands can focus on delivering faster fulfillment, curating assortments that cater to regional preferences, and elevating customer service.
As global trade dynamics evolve — with recent tariff shifts in markets like the US — the GCC is likely to become an even more attractive destination for CBT players, further intensifying competition and innovation.
We hope you’ve found these insights helpful. For a more detailed discussion or to explore how these shifts may impact your business, feel free to reach out to us!
