Last year I was on vacation in Dubai at the time of the annual Beautyworld Middle East trade show. I took an afternoon off from sightseeing and lounging by the pool to walk the aisles, and, seriously, all it took was one minute to see how huge the market and the opportunity is in this part of the world. Beauty and fragrance are big business; Euromonitor estimates the beauty and personal care market to top $60 billion in 2025. Given that number, in our final chapter of this series on the Middle Eastern approach to perfumery, we’ll get to know the consumer, we’ll look at the retail landscape and we’ll look into the future with an entrepreneur who’s hoping to change the way people shop for perfume.

A Consumer for the 21st Century

The Middle East is a rich and diverse region made up of 17 countries in the MENA group (Middle East – North Africa) stretching from North Africa to Western Asia while the Gulf Cooperation Council (GCC), includes the Arab countries of the Persian Gulf, except for Iraq. Each country and each culture is different, as are the preferences, but one thing that is common is the increased demand for beauty and fragrance products.

If we look at the GCC specifically, disposable income is estimated at $3 trillion and expected to grow. More than a quarter of the population falls into the Millennial to Gen Z generation, they are educated, ambitious, and tech savvy. This youthful demographic is mindful about respecting their heritage, and despite the tensions in this part of the world, they are positive and optimistic.

Contrary to what the West may think, the role of women in the region has changed tremendously as social reforms, particularly in Saudi Arabia, have opened new doors in terms of employment and career opportunities, which brings with it greater financial independence. Women have gained a greater role in society, they have more freedom over how to spend their money, and consequently, they are important consumers. And they love beauty and fragrance!

Beauty has come out of the private realm of one’s home due in part to the strength of social media, and in this part of the world, people are addicted to Snapchat and Instagram. It is reported that YouTube Beauty content has attracted over 1.9 billion views and has been rising at a rate of almost 187% each year. Women enjoy being feminine and using beauty as a means of identity and self-expression.

In parallel, fragrance communicates status and identity. For women, the daily act of perfuming their abaya (the over-robe worn to uphold modesty) is a way of making a personal statement, and the fragrance they wear today will be different tomorrow.

Given the importance of scent to the culture, as seen in our previous chapters, it’s no surprise that the average person is sophisticated, discerning, and demanding when it comes to fragrance. They have grown up around ingredients and have learned from a young age to layer, to blend and to appreciate fragrance in its many forms. They expect their fragrance to project and to be tenacious. With this information at hand, countless International brands have created Middle East specific fragrances and collections.

As much as Arabian fragrances connect the wearer to the history and roots of the region, the modern consumer is experimental, curious and interested in testing new things. Today’s consumers are looking for something different as Independent perfumer Alexandre Helwani concurs. “There is a resurgence in interest in fine French style fragrance. Floral aldehydic fragrances are new to this consumer. If something like Caleche goes through the Middle East lens, it may become fashionable again. “

An interesting phenomenon that exists in this part of the world is the perfume club. Similar to a book club in the West, it’s a community where people gather to talk about the fragrances they’re wearing, scents they’ve discovered and places they’ve shopped. It is just another example which indicates how passionate the consumer in this region is about fragrance.

Let us now turn to where people are going to purchase their perfumes.

The Market Dynamics

The Retail Landscape

The origins of the shopping mall as we know it today could be compared to what was the traditional souk (or souq) of yesteryear. The souk, which dates back to ancient times, was the hub of activity: the word itself means marketplace, and it’s here that people gathered not just to buy and sell goods, but to meet, to have discussions, to get information and to have social interaction. Souks attracted artisans and craftsmen as they were centers for trade. Some grew into entire compounds including public baths, mosques, schools and offices.

Although the souk still exists today in the Middle East, it appears the mall is the modern equivalent. In an interview, Lebanese-Iraqi architect Karl Sharro said “We don’t separate the idea of trade from our everyday social interactions. Going to the mall, like going to the souq, is not purely a matter of utility; it is a way to meet other people.” I asked Talal Beydoun, Business Development Director at import and distribution company Création Alexandre Miya Paris, based in Dubai, to comment on the role of the mall for local residents. “It is the only place to shop in the Gulf countries because of the weather factor. Very rarely will you have street shopping. In the Gulf people only go to the mall, whereas in Lebanon, Jordan, and other parts of the Middle East it’s a mix. Community malls are small but you can only have so many mega malls. You have to create a point of interest for everyone to come.” From experience I can say that the Mall of Dubai is the place to be. With over a thousand shops, more than 200 food and beverage options, an ice skating rink, an aquarium, cinemas and so on, there is something for everyone. You can walk for miles, it’s an air conditioned haven out of the 40°+ temperatures, with lots of underground parking. The malls are destinations that bring together shopping, entertainment, tourism and leisure.

Talal told me that most of the Gulf countries have at least one or two major malls. To give an idea of the volume generated, he told me that 70% of the beauty sales in the UAE are done at Dubai Mall and Mall of the Emirates.

What are the prospects for entering other countries, I asked him? “When you talk about Jordan, Lebanon, Egypt, it’s quite different. It’s developing. The cost of entry into Egypt is quite different in terms of customs duty. In the Gulf it’s 5%, in Egypt it’s from 25 – 55% depending on various factors. Then there’s the VAT, the margin for the retailers…. Iraq is developing but it’s very traditional. Syria, Lebanon, Iran….it is challenging to enter these markets.”

Single Brand Boutiques vs Department Stores

I had more questions for Talal in terms of the retail channels. Do single brand fragrance boutiques have an important presence or are consumers going to multi-brand shops (like Sephora, Niche Gallery) and department stores? “Stand alone boutiques, which we see for Creed and Memo in terms of niche, are able to give a unique experience that can’t be done in a multi-brand store. It is becoming more lucrative for the brand because they have the full margin which facilitates the ability to cover the costs such as rental and staffing, and they control the DNA, so they can provide an experience which wows the consumer. But it’s only the top tier brands who can do this, and for some it is now part of their business strategy.”

Similarly, the department stores are prioritizing brands with means. “If you go into Bloomingdales you will see they are focused on the big players – remember retail space is limited. They need brands that can bring something different, that can invest in education, personalization, staffing, promotional activities – events, sampling, etc. Smaller brands aren’t able to provide this.”

In regards to artisan fragrances, “they are available in the souk but then they are also sold in shops in the mall. Kiosks in the mall can have fragrances from all over the world, some are dupes and some are not. What is sold in the souk can be really high quality so you can’t judge the fragrance by the surroundings or the ‘marketing’ or the lack thereof.”

In terms of the retailers, Talal gave me a great snapshot of what is happening in the region. “The retail market has evolved as some retailers in the region have exited: Paris Gallery shut down, the Alshaya group, which had Debenhams exited the Saudi market. Sephora is controlling about 50% of the structured market in Saudi, then Faces comes in second with a huge gap, and after that there is a void. The void is being replaced by a lot of local brands who are flourishing at kiosks and stands. Two Russian retailers (Apple and Etoile) have entered the market this year first in Qatar and then in the UAE and Saudi. It will take them a while before they create a shift in market share, they will go through some challenges, they will need to understand the market. But it is someone new coming into the region. Alshaya is closing some markets (Egypt, Oman and may close Qatar). In short, there is a lot of change and consolidation.”

Online Shopping

Given the oppressive heat, and the fact that the young consumer is so digitally connected, do people shop from home and order online? “Online shopping has developed, and of course it accelerated during COVID. Those who had well established ecommerce platforms and proper service to the last mile succeeded. For the Al Tayer group which includes Bloomingdales, online is 65% to 35% of the business, at Faces/Sephora it’s 10 to/15%. We see healthy growth and improved services in both online and brick & mortar. There is access to good delivery including 3rd party deliveries. Some mono brands do the delivery themselves, the last mile: someone comes in a L’Occitane outfit to deliver the goods, not a random driver who doesn’t know the brand.”

Although eCommerce is growing, consumers in the Middle East still prefer to visit physical stores, and the mall culture continues to thrive. Young consumers go to the mall because it’s a hobby and clearly, they want the in-store experience.

State of Fragrance Today

Our journey has almost come to an end but first we need to understand some of the challenges and opportunities found in the Middle East today.

The World Traveler

On the High Street in London, on the Via Montenapoleone in Milan, on Rue Saint Honoré in Paris, people from the Middle East are travelling to Europe and they are shopping. What brands sometimes fail to understand is that the consumer really values bringing back gifts from their travels, and the success may not be replicated if the brand opens in the Middle East. Let’s take an example I discussed with Talal. “Thameem was exclusive at Harrods, it was doing well, and then they wanted to enter the market here but it was not successful. Nationals from the Gulf are happy to bring back gifts that they can claim as something that can’t be found in the region. Being exclusive and not available in the region has a higher value because not everyone has access. Brands need to consider that not everything that works in Europe will work here. Maybe you open one point of sale and make it extremely exclusive.”

Clones

The topic cannot be ignored: many Middle Eastern fragrance brands make clones of top selling western fragrances. Some make the fragrance stronger or they add notes that may have greater regional appeal. The fragrances can be produced locally because manufacturing facilities exist in the UAE plus labor and production costs are less expensive than in Europe. Consequently, the price points are very attractive to the consumer, and given the high fragrance consumption, it can be a deciding factor.

The Clone Culture has gone viral as well, with countless videos on YouTube and TikTok, pushing this option which a short time ago was not something anyone would admit to buying. Perhaps, however, this phenomenon has also led to the surge in online searches for Arabian perfume which, according to a Spate report, has an average of 25.1K monthly searches and +173.9% YoY growth.

New Horizons

From a development standpoint, Rawya points to the challenge of being distinctive. “Remember Dubai is a huge perfumery hub of production that exports all over the world. The main challenge for everyone is differentiation. How do you stand out? What is different about you? “ CPL Aromas has taken inspiration from local culinary influences to create fragrances based around traditional foods. “We created a fragrance called mhalabia musk, which mhalabia is an Arabic dessert based on orange flower and milk powder. The scent is a white musk designed with this dessert as inspiration.” Another food related scent came by way of kamardeen, a drink which is typically served during Ramadan. “It’s based on apricot paste with a little bit of sourness to it, so we created a fragrance playing on something cultural. It’s a tangy osmanthus, apricot, pistachio scent.”

There is also a new sense of freedom of expression and an excitement about the natural beauty of the region. Influencers in Saudi, Kuwait, and the UAE, can freely communicate about fashion, taste, and travel. There are more choices on how to spend money with the proliferation of concerts, restaurants, local tourist attractions and sports. Saudi based influencer Mohammed Abu Hajar, commented on the relaxation of advertising and packaging standards. “Several years ago you couldn’t use images of people on the bottles or in the advertising – the restrictions have really relaxed! For decades companies had difficulty in how they could communicate on their image. It’s a significant change.”

Entrepreneurial Spirit

We have seen that fragrance is an integral part of personal grooming and self-expression in the Middle East, and that age-old customs and traditions are followed to create a unique scent impression. Paul Houlsby, CEO and Founder of The Perfume Movement is looking to bring a new retail concept into the fold with what he has called “the world’s first AI-powered luxury fragrance retail brand”. AI technology will develop a unique olfactory profile for each individual based on their preferences, and then it will blend a personalized scent made from exclusive in-house fragrances. Users can create their own library of fragrances which also extends to ancillary products.

I asked, why launch in the Middle East? “Consumers here are true connoisseurs of perfume, cherishing it as both an art form and a personal signature. Our concept of helping individuals discover their unique olfactory identity aligns seamlessly with the region's appreciation for bespoke, luxurious fragrance experiences. For these consumers, a perfume is not a standalone product but the heart of a carefully layered ritual. Each step draws upon their signature scent, highlighting the importance of quality complementary products to enrich and extend the fragrance.”

The Perfume Movement is set to revolutionise the fragrance industry with the unveiling of its online platform in April 2025, followed by the launch of its first immersive experience store in November 2025.

Parting Words

We have come a long way on our olfactory journey of discovery in this region, but the story is far from over. The Middle Eastern approach to perfumery is a testament to the region’s rich cultural heritage; it goes way beyond what we cursorily think of it. It’s been a fundamental part of daily life for centuries. It is treasured and revered. It’s a source of hospitality, respect and generosity. It has now penetrated the global fragrance industry bringing its appreciation for luxurious, powerful and opulent scents to the rest of the world. May the allure of Middle Eastern perfumery be a fragrant bridge between the past and the present and between all peoples.

Thank you to the incredible individuals without whom this series would never have been possible.

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Note: The Middle East is a very complicated region to define, and in fact definitions have changed over the years. When I sourced this question, World Atlas stated “The Middle East is a geographically and culturally diverse region made up of 17 countries spanning northern Africa and western Asia.”

The Levant includes the historic areas of Lebanon, Jordan, Israel, Syria, Cyprus and the Hatay Peninsula, located in modern-day Turkey, although a broader description defines it as the territories from Greece to Egypt.

The Gulf Cooperation Council (GCC) includes the Arab states of the Persian Gulf, except for Iraq. This is a regional organization of six oil-rich countries who share common cultural and religious identities and seek to achieve regional cohesion.

SOURCES

Decoding The Middle East Beauty Market Opportunity | BeautyMatter

Arabian Perfumes Invasion Of The West Market

Mega Malls And The Middle East | BeautyMatter

www.moabuhajar.com/

CPL Aromas Introduction to Middle Eastern Perfumery

The History & Heritage of the Souk