Beautiful Dubai

Beauty is blooming in the United Arab Emirates. With substantial and tax-free per capita income, 65% population between the ages of 20 and 40, and dramatic growth in retail development, the UAE -and Dubai in particular- is now a haven for local, regional and international beauty brands. In 2005, the cosmetics and personal care market in the UAE alone was worth more than $414 million in retail sales an increase from $382 million in 2004. And get this: the 2007 cosmetics and toiletries market in the UAE was valued at $725 million; Dubai accounts for 70% of that UAE total, or (WWD, Vol. 195, No. 55, March 14, 2008),or $507.5 million.

Average luxury and mass channel growth rates are between 10% and 15% in the UAE, but Dubai's leading luxury retail chain, Faces (similar to Sephora in concept), is logging 55% growth. However, Faces is owned and operated by the Chalhoub Group, who has been leading the luxury retail and beauty business in the Middle East since 1955. They have a head start on you.

The Chalhoub Group holds about 35% of total regional beauty market share. With Dubai home to 140 nationalities, competition among brands is fierce-natural kohl eyeliner from Saudi Arabia will give Benefit's Bad Gal mascara a run for its money any day. Still, color cosmetics and skin care have the highest forecast growth (50/55%) in the beauty category; haircare and fragrance currently lead. Euromonitor forecasts beauty sales for the UAE to exceed $900 million by 2010. For Dubai that's $630 million. Projected value of the same market in the United States is $7.6 billion for 2010.

Tempting.