Regional luxury goods sector set to reach USD100 billion by 2010

He cited a booming youth market driving the luxury goods sector.

"Women and younger generation in the region are serious luxury product buyers right from the age of 20 compared to 40 years in the west. This gives 20 extra years for luxury brands in our region," said Abdullah.

"The global luxury market which is today valued at about US$ 400 billion is expected to grow by US$1 trillion by 2010, of which 10% I would estimate will be from the Middle East considering the growing per capita income of the region and Dubai's emergence as a luxury capital," he added.

Globally 32% of the luxury market sales come from high end jewellery and watches which is also a major contributor to the luxury market in the region. Swiss luxury watches during the first half of 2006 showed US$175 million to UAE which is 12.2% growth compared to last year.

"We expect the luxury watch sales in the UAE to cross US$500 million by the end of 2006 and the total market size of the region to reach US$ 4 billion by 2010, " added Abdullah

Talking about the changes in the profile of luxury goods consumer, he said today's consumer is young, more educated, more demanding and looks beyond the brand for a total luxury experience including world class shopping facilities and excellent customer service.

Stringent measures to crack counterfeit sales in luxury goods and specific marketing plans targeted at the younger generation are necessary to help the regional industry.

According to Moaz Barakat, managing director, World Gold Council, Middle East, Turkey and Pakistan, the gold jewellery industry has seen a revival through fresh marketing mechanisms which have established gold jewellery as a fashionable luxury item.

"By developing marketing strategies and business plans built on a structured understanding of the market and in-depth consumer insights and research, we have seen a revival in the demand for gold jewellery. Dubai's consumption in 2005 increased by 10% from 95.8 tonnes in 2004 to 106 tonnes in 2005, despite the 8% increase in the year-year average price. Dubai's imports in 2005 was 522 tonnes, in the first 9 months of 2006 it is already 361 tonnes,"

said Barakat.

Contribution of high end jewellery to the regional luxury goods sector is expected to be as much as that of the watch segment, around US$4 billion by 2010.