The Middle East is expected to become one of the fastest growing markets for luxury in 2023, according to Barclays Plc analysts, with the owners of Louis Vuitton and Cartier best placed to benefit.
Analysts at the bank cited high oil prices that underpin buoyant economic conditions and demographic trends for their optimistic call on the region. Dubai’s continued focus on attracting tourists and foreign expatriates, as well as its diversification away from oil are also factors that will boost luxury spending.
LVMH Moet Hennessy Louis Vuitton SE, the owner of Louis Vuitton and Christian Dior, and Richemont, which makes Cartier jewelry and watches, will be beneficiaries of the Middle East’s luxury growth, according to the broker.
“The broad outlook for the region remains much more positive than for western economies, with GDP growth forecasts being revised up at a time of downward revisions for most countries globally,” analysts including Yasmin Clark and Carole Madjo said in a research note on Friday.
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