The global AI race could significantly influence how luxury brands serve customers in the Middle East, with the UAE and Saudi Arabia identified as emerging AI hubs backed by state investment, sovereign wealth funds and digital infrastructure.
According to a report in Vogue Business, both Gulf countries are using public capital and policy support to position themselves as serious players in artificial intelligence. It highlights the UAE’s Mubadala-backed ecosystem, Abu Dhabi-based G42, and startup platform Hub71, alongside Saudi Arabia’s Public Investment Fund and Riyadh-based venture capital firm STV.
The UAE, and Saudi Arabia are among the countries such as the US, China, France, the UK, Japan, Singapore, and more, who have formally identified AI as central to their national, economic, and security strategies.
This matters for luxury brands because AI is expected to reshape shopping journeys, personalization and customer service differently across regions. In fast-adopting markets such as the Gulf, younger consumers are increasingly open to AI-led recommendations, digital discovery tools and smarter retail experiences, the report said.
The, according to the report, could create opportunities for luxury houses to localize services in the region — from AI-powered clienteling and tailored product suggestions to seamless online-to-store experiences — while still preserving the human touch central to high-end retail.
Rather than one global AI model, the report argues that luxury brands will need separate regional strategies. In the Gulf, where governments are aggressively investing in future technologies and consumers are digitally engaged, brands may face pressure to offer more advanced experiences sooner than in slower-moving markets.
The top-tier ultra-luxury clients are likely to continue valuing personal relationships and exclusive human service, meaning AI will work more as an enhancer than a replacement in the premium segment, the report added.
