Dubai Emerges as Best-Performing Luxury Hub Globally, Visa Report Finds
- For the first time since the global financial crisis, luxury spending slows across major global cities with fewer consumers buying luxury goods in the first half of 2025.
- Dubai stood out, outperforming global peers, including New York and London, as luxury spending stayed stable.
UAE, Dubai – November 17, 2025 – For the first time since the global financial crisis, luxury shoppers are showing a little more caution. According to Visa’s latest Global Economic Insight report released today, fewer consumers made luxury purchases across major global cities in the first half of 2025, marking a decline after several years of steady growth.
In London, Paris, New York and Singapore, the share of cardholders buying high-end goods fell compared with last year, as economic uncertainty, trade tensions and currency swings weighed on confidence.
Dubai stood out from the trend. Its appetite for luxury remained strong, with about one in nine residents making a premium purchase each quarter, which is well above other major cities. The city’s large base of affluent households, nearly 37% earning more than USD 150,000 a year, continues to support demand for luxury goods.
Luxury goes beyond the ultra-wealthy
Luxury shopping is no longer limited to the ultra-wealthy. Visa’s data show that beyond the Elite (top 1%) spenders, the appeal of luxury is spreading across a broader group of Affluent (top 5%), Emerging Affluent (top 10%), and Upper Middle Class (top 20%) consumers. For many in the middle class, premium luxury goods are now an aspirational goal, representing both achievement and self-expression.
“The first half of 2025 showed that even the world’s most confident consumers are taking a pause. Yet the long-term outlook for luxury remains strong,” said Mohamed Bardastani, Visa’s Principal Economist for Central and Eastern Europe, Middle East and Africa. “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.”
About Visa’s Global Economic Insight
Visa’s Global Economic Insight series uses VisaNet data and economic analysis to track changes in consumer spending across markets. For more information, visit Visa.com/EconomicInsights.