Dubai cemented its status as the world’s most resilient luxury spending hub in the first half of 2025, according to a recent analysis by Visa, even as major global cities experienced a notable cooling in high-end consumer purchases for the first time since the global financial crisis. The data, published in Visa’s Global Economic Insight report, reveals a significant divergence, with luxury expenditures slowing in established markets like London, Paris, New York, and Singapore, primarily constrained by rising economic uncertainty, trade tensions, and currency fluctuations.
The findings, released on November 28, 2025, indicate that caution among affluent consumers led to a year-over-year decline in the percentage of cardholders making luxury purchases across these major international centers. However, Dubai defied this trend, showcasing an unwavering appetite for premium goods. Approximately one in nine Dubai residents engaged in a high-end purchase each quarter, a frequency substantially higher than its global peers. This demand is underpinned by the emirate’s deep base of wealthy households, with nearly 37% of residents earning over $150,000 annually.
Luxury Appeal Broadens Beyond the Ultra-Wealthy
Crucially, the report highlights that the sustained momentum in luxury spending is not exclusively driven by the ultra-wealthy. While the top 1% (Elite spenders) remain key drivers, Visa’s analysis demonstrates a broadening appeal across various affluent segments, fundamentally transforming the definition of a luxury consumer.
The appeal now spans the Affluent group (top 5%), the Emerging Affluent (top 10%), and the Upper Middle Class (top 20%). For these expanding segments, premium products increasingly serve as aspirational markers of achievement and self-expression, making luxury goods accessible and desirable to a broader demographic than ever before.
Mohamed Bardastani, Visa’s Principal Economist for Central and Eastern Europe, Middle East and Africa, commented on the unexpected global slowdown and Dubai’s exceptional performance. “The first half of 2025 clearly showed that even the world’s most confident consumers are taking a pause,” Bardastani noted. “Yet the long-term outlook for luxury remains strong.”
Why Dubai Maintains Momentum
Dubai’s exceptional performance is attributed to a combination of internal wealth generation and strategic economic positioning. The city’s strong foundation of affluent residents, coupled with consistent inbound tourism flows, ensures a steady engine for high-end retail.
Bardastani added, “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. As new consumers enter the market and wealth passes from one generation to the next, the base of luxury buyers will continue to grow.”
The city’s status as a safe haven for global capital and its relatively insulated economy have successfully shielded its retail sector from the volatilities affecting Western and Asian markets. This sustained consumer confidence suggests that Dubai will likely continue to drive the global luxury retail narrative, emphasizing its role as the preferred destination for premium purchasing and aspirational consumption worldwide.
Looking ahead, global luxury brands are expected to further concentrate their investment and retail efforts in the Middle East, particularly within Dubai, to capitalize on this enduring consumer demand and demographic shift towards younger, newly affluent buyers.