Market Forecast to Grow More Than 60%
Qatar’s luxury goods market is projected to expand significantly over the next five years, supported by high consumer purchasing power, tourism growth, major retail and infrastructure investment, regulatory reforms and increasing digitalisation.
According to Mordor Intelligence, the market was valued at $1.47 billion in 2025 and is expected to reach $1.62 billion in 2026, before climbing to $2.63 billion by 2031. This represents a compound annual growth rate (CAGR) of 10.15% between 2026 and 2031.
The research identifies Qatar’s post-World Cup infrastructure, lower business registration costs, tourism expansion and the introduction of the Integrated GCC Customs Tariff as factors supporting continued retail development and the entry of international luxury brands.
Tourism Emerges as Major Growth Driver
Tourism is expected to be one of the strongest contributors to luxury-market expansion. Mordor Intelligence estimates that tourism could add around 2.3 percentage points to the market’s forecast growth, making it the strongest of the growth drivers assessed in the report. Strategic investment and government initiatives could contribute 2.1 percentage points, while aggressive brand marketing could add 1.8 points.
Qatar received more than 5 million visitors in 2024, representing year-on-year growth of 25%, according to Qatar Tourism figures cited in the report. The country is targeting 6 million visitors annually by 2030, alongside an ambition to raise tourism’s contribution to GDP to 10–12%.
Major visitor source markets include Saudi Arabia, India, the UK, Germany and the US.
Infrastructure Investment Supports Premium Retail
Large-scale infrastructure and real estate investment is creating additional locations for luxury retail and hospitality.
Mordor Intelligence points to Qatar’s estimated $200–300 billion infrastructure programme, initially accelerated in preparation for the FIFA World Cup, as an important factor behind the expansion of premium consumption.
New developments such as the Simaisma coastal project, which includes high-end villas and the Trump International Golf Club, are expected to provide further opportunities for luxury hospitality and retail operators.
Lusail is also emerging as an increasingly important luxury destination. In June 2026, Qatar Museums and Lusail Real Estate Development Company unveiled the Al Maha Island masterplan, combining a museum designed by Herzog & de Meuron with a contemporary souq and luxury boutique residential areas.
In July 2026, Parsons was awarded a three-year programme and construction management contract covering infrastructure development across 38 sq km of Lusail City. The report expects such projects to broaden the range of premium locations available to luxury brands, department stores and experiential retailers.
Doha Accounts for Nearly 60% of Market
Luxury spending remains heavily concentrated geographically.
Doha Municipality accounted for 59.6% of Qatar’s luxury goods market in 2025, supported by its concentration of premium retail, hospitality and tourism infrastructure. Lusail is developing as a second major luxury cluster.
Al Wakrah, meanwhile, is forecast to record the fastest regional growth, with a 10.33% CAGR over the forecast period.
Prominent luxury destinations include Place Vendôme in Lusail, AlHazm Mall and the expanding retail offering at Hamad International Airport.
Clothing and Apparel Remain Largest Segment
Clothing and apparel represented 29.45% of Qatar’s luxury goods market in 2025, making fashion the largest product category.
Demand is being driven by occasion wear, premium tailoring, designer collections and bespoke services. International luxury houses operate alongside local premium fashion businesses catering to demand for traditional clothing and personalised services.
The luxury watch segment is expected to be particularly dynamic, recording a 10.34% CAGR through 2031.
Growth is being supported by increased interest in limited editions, authorised dealerships and collector communities, as well as the perception of premium watches as both status products and investment assets.
Jewellery is also benefiting from Doha’s developing role in the precious-stone trade, while beauty and personal care products are attracting demand from a relatively young and increasingly wellness-conscious consumer base.
Luxury Brands Increasingly Tailor Products to Qatar
International brands are adapting products and experiences specifically for the Qatari market.
The report highlights Audemars Piguet’s Qatar-specific Royal Oak watch, incorporating Eastern Arabic numerals and a burgundy dial, as an example of localisation.
Louis Vuitton also opened its first airport lounge at Hamad International Airport in 2024, combining luxury retail with premium hospitality.
The inaugural Arabia Luxury Travel Show in Doha in January 2025 attracted more than 160 luxury tour operators from markets including Russia, Belarus and Kazakhstan.
Women Account for 56.3% of Luxury Spending
Women represented 56.3% of Qatar’s luxury goods market in 2025, with particularly strong spending across fashion, jewellery, cosmetics and other beauty categories.
Luxury companies are responding through exclusive collections, VIP services, personalised shopping and digital tools including virtual try-ons and customised product recommendations.
The men’s luxury segment, however, is expected to expand rapidly, recording a projected 10.22% CAGR through 2031. Growth areas include premium grooming, bespoke tailoring, watches, accessories and menswear.
Physical Stores Still Dominate, but E-Commerce Accelerates
Despite digitalisation, Qatar’s luxury market remains predominantly store-based.
Physical retail accounted for 74.9% of luxury sales in 2025, reflecting consumers’ preference for personalised service, the ability to examine premium products directly and the experiential nature of luxury shopping.
However, online luxury retail is forecast to grow at a 10.88% CAGR through 2031.
Brands are investing in mobile commerce, social commerce, AI-powered recommendations, virtual try-on technologies, augmented reality and virtual showrooms.
Authentication is becoming particularly important online. Retailers are exploring blockchain-based authentication, digital product certificates and tracking technologies to reassure consumers purchasing expensive products remotely.
AI Increasingly Influences Luxury Shopping
Technology is expected to play a growing role in Qatar’s premium retail sector.
A June 2026 Visa consumer study cited by Mordor Intelligence found that 90% of consumers in Qatar use AI-powered technologies during their shopping journeys.
The trend could encourage investment in AI-powered personalisation, omnichannel appointment systems and authenticated product information connecting online and physical shopping experiences.
For watches and jewellery in particular, technology is also being deployed to establish provenance, verify authenticity and strengthen after-sales services.
Business Reforms Lower Barriers for International Brands
Regulatory reforms are another factor supporting market expansion.
Qatar reduced certain business registration fees by up to 90% in July 2024, lowering establishment costs and strengthening the country’s appeal to international brands and investors.
The reforms complement Qatar’s Third National Development Strategy, which emphasises private-sector development and foreign investment.
Luxury imports and retail activities nevertheless operate within a multi-agency regulatory system involving the General Authority of Customs, Ministry of Commerce and Industry and Qatar General Organization for Standardization.
Importers must comply with customs procedures and relevant technical standards, while regulated products can require conformity certification before shipment. Intellectual-property and authenticity requirements are particularly important for categories including jewellery, watches, apparel and accessories.
International Groups Lead a Competitive Market
Mordor Intelligence describes Qatar’s luxury market as moderately concentrated, with major international groups competing alongside regional companies and local luxury brands.
Leading international players identified in the report include LVMH Moët Hennessy Louis Vuitton, Kering, Richemont, Chanel and Rolex.
International brands are estimated to account for approximately 70% of luxury purchases, while major destinations such as Place Vendôme combine global luxury brands with Qatar’s growing premium retail infrastructure.
Qatar also has an unusual connection with the international luxury industry through investments in global luxury assets and brands. The report points to Qatari-linked ownership interests in names including Valentino, Balmain, Harrods and Printemps, creating links between domestic luxury consumption and international luxury investment.
Sustainability Becomes Part of Luxury Strategy
Sustainability is also becoming more influential in purchasing decisions, particularly among younger affluent consumers.
Luxury businesses are responding through responsible sourcing, sustainable packaging, waste reduction, circular-economy initiatives and greater transparency in their supply chains. Mordor Intelligence estimates sustainability-related consumer preferences could contribute around 0.9 percentage points to forecast market growth.
Counterfeiting and Price Sensitivity Remain Challenges
Despite the strong outlook, the sector faces several constraints.
Counterfeit clothing, footwear and jewellery remain a challenge, requiring continued customs enforcement, market inspections, authentication technology and consumer education.
Price sensitivity is also emerging in some parts of the market. Consumers are becoming more selective, encouraging retailers to introduce entry-level luxury products and flexible payment options.
The expansion of pre-owned luxury products and rental platforms is another indication that some consumers are seeking alternative ways of accessing premium brands without paying full new-product prices.
Overall, the combination of affluent consumers, tourism growth, major retail and real estate developments, business reforms, digital commerce and Qatar’s international luxury investments is expected to keep the sector on a strong growth trajectory, taking the market from $1.62 billion in 2026 to $2.63 billion by 2031.
Source: Mordor Intelligence
