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Sun, Nov 16, 2025 | Jumada al-Awwal 26, 1447 | Fajr 05:17 | DXB 
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How UAE's perfume industry is heading towards billion-dollar future
Craftsmanship, storytelling, and an unmatched sense of what works takes UAE’s scent game to a whole new level
The UAE — long recognised as a hub of perfumery in the Arab world — is poised to elevate its olfactory legacy to new heights. According to a recent report by a global management consulting firm, the UAE perfume market is expected to surge from $748.9 million (Dh2.75 billion) in 2024 to $1.72 billion (Dh6.3 billion) by 2033, at a compound annual growth rate of 9.22 per cent.
IMARC Group noted this robust growth is being driven by a confluence of factors: “The enduring popularity of oriental fragrances, a digitally savvy new generation of consumers, luxury tourism, and an increasing focus on sustainability and innovation.”
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But as the UAE’s perfume sector strides towards a billion-dollar future, it remains grounded in the elements that first set it apart: craftsmanship, storytelling, and an unmatched sense of scent. With Dubai continuing to evolve as a global luxury capital, fragrance has become a vital expression of identity, culture, and status.
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“While international brands have firmly established their presence in the Arabian Peninsula starting with the UAE, traditional oriental fragrances continue to be the heart of the region’s olfactory identity — highly sought after not only by locals but also by Western consumers,” said Abdulla Ajmal, CEO of Ajmal Group.
From its humble roots, beginning with Dh25 and the vision of late founder Haji Ajmal Ali, Ajmal Perfumes has grown into a regional empire and global player. The company opened its first Dubai store in 1976 and continues to innovate while holding fast to its heritage.
“The future of fragrance retail lies in balance. While nothing will ever fully replace the sensory richness of walking into our perfume stores, convenience-first consumers are rewriting how luxury is accessed,” said Ajmal, the founder’s grandson.
“Digital innovation, personalised experiences, and strategic sampling have redefined how people explore and purchase perfumes, paving the way for a more accessible and experiential online fragrance market.”
Ajmal pointed out that consumers still prefer in-store purchases for items like agarwood chips and Dahn Al Oud oils, but spray perfumes are increasingly bought online, especially for repeat purchases.
Other scent designers also highlighted that for local perfumers today, one of the key challenges is standing out in a fast-paced, trend-driven digital landscape.
“With consumers in Dubai becoming more convenience-focused and digitally native, it’s crucial to capture their attention quickly and meaningfully. But that’s also where the opportunity lies — by embracing e-commerce, storytelling, and social media, local brands can build direct, authentic connections with niche audiences. Success now depends on being agile, innovative, and deeply in tune with both global trends and local cultural preferences, all while staying true to your brand’s identity,” said Munira Rahman, chief marketing officer, director, and brand ambassador of Al Haramain Perfumes.
Tradition and trend
While global brands remain influential, UAE-based companies are innovating with distinctly local flavours. Homegrown brand Enliven Perfumes, for instance, is turning to a hybrid of tradition and trend. “As UAE’s homegrown perfume brand, we have looked into the needs of the younger GenX and their tastes. We found that they want something new that has the local Arab touch – such as Oudh-based perfumes – but it must smell modern,” said Khandaker Hashibuzzaman, managing director at Enliven Perfumes. “We maintain a higher level of concentrate — at least three times higher than the average perfume available in the market — so that they last at least 18–24 hours,” he added.
With new generations seeking not just scents, but stories behind them, social media has become the new scent strip. “Fragrances come with stories and this needs to be communicated to the consumers loud and clear… We need more interesting stories behind perfume notes — that will go a long way in getting customer loyalty,” added Hashibuzzaman. “Sustainability is gaining popularity in business activities. It is important to be trendy and if one could build in sustainability, then the story gets interesting to the customers.”
Niche is the new normal
Meanwhile, brands like Ahmed Al Maghribi Perfumes are curating unique, limited-edition offerings to cater to young, experience-driven shoppers.
“Ahmed Al Maghribi Perfumes is embracing this shift by creating modern, niche collections that reflect a fusion of Emirati heritage and contemporary taste,” said Kafeel Ahmed Gudekar, CEO and founder of the brand.
“We partner with regional influencers and reviewers to build trust and connect with digital-native audiences. We offer personalised gifting options and exclusive lines that feel bespoke and culturally relevant.”
Culture meets commerce
With Dubai welcoming more than 17 million visitors in 2023, the synergy between tourism, luxury retail, and perfume culture is stronger than ever. The sensory appeal of the UAE’s fragrance offerings often becomes a tangible souvenir for travellers seeking an immersive experience.
According to Euromonitor, the GCC region’s appetite for premium and niche scents has grown significantly over the past five years, with the UAE leading the charge. The rise of experiential perfume bars, custom blending studios, and AI-powered scent consultations across the Emirates signals a new phase in fragrance retail — where legacy meets lifestyle.
Dubai Duty Free recently announced that half-year sales posted a 5.34 per cent year-on-year increase, with turnover reaching Dh4.118 billion for the first six months of 2025.
Perfumes, beverages, cigarettes and tobacco, gold, and confectionery retained the top five category positions. Perfume sales reached Dh744.24 million, contributing 18 per cent of total revenue and showing an increase of five per cent over the same period last year.
Sharon Beecham, senior vice-president — purchasing at Dubai Duty Free, said: “The key drivers in fragrances growth are the niche perfumes, the Dubai Duty Free or Travel Retail exclusive products and the strong new launches. We will continue to expand the offer of niche fragrances, which are already showing a double-digit growth. In partnership with the top perfume brands we have plans for the second half of this year and for 2026, to launch new exclusive products and activate tactical promotions.”
Nandini Sircar
Nandini Sircar has a penchant for education, space, and women's narratives. She views the world through a prism of learning: whether it's the earthly pursuit of wisdom or the unearthly mysteries of space. In her written universe, women and children take centre stage.
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