The Middle East’s luxury fit-out market is on a growth trajectory and is expected to nearly grow two-fold from $16.3 billion in 2023 to $32.7 billion by 2030, said a report by Abra, a regional leader in luxury retail fit-out sector.
This expansion is driven by rising demand for bespoke craftsmanship, sustainability-focused initiatives, and large-scale retail investments across the region, it added.
Retail infrastructure investment has surged in the Middle East, with leading fit-out firms integrating sustainable materials, precision craftsmanship, and digital innovation to enhance consumer experiences.
Abra, a UAE-based luxury retail fit-out specialist, has played a pivotal role in this evolution, contributing to over 90 luxury retail projects in Saudi Arabia in 2024 alone.
As the Kingdom accelerates its Vision 2030 initiative, fit-out firms are seizing opportunities in high-growth retail hubs.
The UAE has established itself as a leader in luxury retail fit-outs, integrating craftsmanship, sustainability, and innovation into the retail spaces.
Key government initiatives such as Abu Dhabi Register of Artisans and The UAE's Green Agenda 2030 are supporting craftsmanship and sustainable luxury retail developments, as well as the rapid expansion in high-end retail, hospitality, and residential sectors.
Luxury brands are increasingly tailoring their retail spaces to cater to regional consumer preferences for exclusivity, authenticity, and high-quality craftsmanship. This trend is reflected in the Middle East’s custom apparel market, projected to grow from $46.75 million in 2024 to $70.67 million by 2032 .
Additionally, the Middle East’s handicraft market is expanding at a CAGR of 7.2% (2022–2028) , driven by consumer interest in traditional artisanal techniques. Homegrown brands and local design houses are witnessing increased demand as consumers seek bespoke, high-quality craftsmanship in both fashion and retail interiors.
Dubai’s expanding retail footprint has cemented its position as a key player in global luxury. Malls and retail spaces are undergoing large-scale transformations, including the Mall of the Emirates’ AED 1 billion redevelopment, adding 40 new high-end retailers and boosting the city’s appeal as a luxury shopping destination.
Luxury retailers are responding by integrating locally inspired designs and high-end craftsmanship into their store concepts. Abra’s recent work with global luxury brands such as Dolce & Gabbana, Yves Saint Laurent, and Guerlain demonstrates this trend, with custom-crafted boutiques seamlessly blending local artistry with modern retail aesthetics.
Environmental consciousness is shaping the future of luxury retail fit-outs. Industry leaders are embedding sustainable construction materials, energy-efficient systems, and responsible sourcing into their operations.
Firms like Abra are ISO 14001 Environmental Management-certified and ranked in the top 15% of sustainable businesses by Ecovadis, reflecting a commitment to responsible craftsmanship.
Looking ahead, the UAE’s retail landscape will continue to evolve with a focus on digital transformation, AI-driven design optimisation, and eco-conscious building techniques.
Luxury fit-out firms that integrate these elements are set to shape the future of high-end retail in the region.
Industry experts predict that Saudi Arabia and the UAE will dominate the Middle East’s luxury retail growth in the coming decade, driven by consumer demand for experiential shopping and sustainability-led initiatives.
As Anand Kumar, the Managing Director of Abra, said: "New mega malls, first-time retailers and brands, demand for experiential and insta-worthy retail are some of the key factors driving the next wave of luxury retail, which requires a combination of traditional craftsmanship and innovation."
With the sector’s growth projected to double by 2030, the UAE’s commitment to excellence in craftsmanship and sustainability ensures that the nation remains at the forefront of global luxury retail design.-TradeArabia News Service
