February, at the forefront of the Middle East Luxury Market

In the second half of February, Balsamo is engaged in a series of major events in the Middle East, with a particular focus on Abu Dhabi.

This region is rapidly emerging as a key market for luxury, and our presence here is both operational and commercial, with numerous meetings and collaborations. Pietro Trapletti, our Chairman, shared his thoughts on the significance of the Middle East for our development journey and the importance of being present to meet the key players in luxury travel. He emphasized, "This opportunity allows us to strengthen the formal bonds of friendship that have always distinguished us."

The Evolution of the Luxury Market in the Middle East

The Middle East represents a growing opportunity for luxury brands. In 2023, the luxury market in the region reached 15 billion euros and is expected to double by 2030, reaching 30-35 billion. Saudi Arabia and the United Arab Emirates drive 81% of the region's luxury demand. The demand for luxury goods is fueled by factors such as high purchasing power, the search for status symbols and the cultural appreciation for fine craftsmanship and exclusivity. The concept of luxury is evolving from vanity to sustainability. Today, luxury is associated with the exclusivity of products and experiences, personal leisure and craftsmanship. The leading brands in 2030 will be those that have put sustainability at the center of their strategic agenda. Generation Z will increasingly reward brands that have a positive impact on the environment and society.

The most renowned brands are already investing

Many luxury brands have been investing in the Middle East in recent years, here are some examples.

• Gucci: In March 2022, Kering Group's Gucci presented its glittering high jewelry pieces in the United Arab Emirates for the first time, transforming a villa on Palm Jumeirah into a garden for the occasion.
• Louis Vuitton: This brand has consolidated its position in the Middle Eastern luxury market, surpassing Gucci to take third place after Rolex and Cartier in terms of personal luxury goods sales.
• Chalhoub Group: This group has helped brands such as Prada, Dolce & Gabbana, Tod's and Brunello Cucinelli enter the markets of the United Arab Emirates, Saudi Arabia and Kuwait, organizing distribution and handling marketing.
• OTB Group: In June 2024, Renzo Rosso's OTB Group signed a partnership with Chalhoub Group to open more than 15 retail stores in five years, in the United Arab Emirates, Qatar, Saudi Arabia and Kuwait.

The Role of Balsamo

Balsamo is committed to supporting Middle Eastern customers not only during their travels in the region, but also anywhere in the world. We offer customized solutions that respond to the specific needs of our customers, ensuring unique and sustainable luxury experiences.