Dubai: Vertu, the UK-based manufacturer of luxurious diamond-studded smartphones, is bullish on growth prospects in the UAE despite a slowdown in the global luxury retail market, according to its chief executive, Gordon Watson.
A Vertu store at the Mall of the Emirates in Dubai. Luxury sales in the UAE were weak for most of last year, Image Credit: Zarina Fernandes/ Gulf News
Luxury goods companies in the UAE are posting lower sales growth as oil prices drop and consumer confidence weakens. Vertu?s sales have been ?steady? in the Middle East so far this year over 2015, Watson said, without giving actual sales figures.
Vertu operates 11 outlets in the Middle East ? of those five are in the UAE ? and has 41 points of sale
?In the Middle East, the immediate growth will come from Dubai ? I think Dubai will bounce back again quite quickly in the coming months. It is a unique place. You have certain tourists that have been relatively high spenders in the past,? Watson told Gulf News by phone. Luxury sales in the UAE were weak for most of last year, but picked up slightly during the last quarter helped by buying from Gulf shoppers. However, since the beginning of this year, the pace of decline accelerated.

?Several key macroeconomic events in 2015-2016 hampered the UAE retail market, with a strong impact on [the] luxury sector, due to stagnating tourist spending and suppressed local spending appetite across all segments,? said Cyrille Fabre, partner at Bain and Co.
Watson said th...