**Watches as Investment: A Long-Term Perspective

The luxury watch market presents both challenges and opportunities for investors in the Gulf region, where long-term wealth preservation is prioritized over short-term gains.** In an exclusive interview with Arabian Business, Robertino Altiero, CEO of WatchGuys.com, emphasized the importance of viewing watches as a form of portable wealth rather than a quick investment opportunity. He noted that while the luxury watch market is currently experiencing fluctuations, it can serve as a reliable store of value with the potential for appreciation over time. Altiero suggested that significant gains in this sector typically require a long-term commitment, with a minimum holding period of 120 years for optimal returns. The global luxury watch market, valued at approximately US$53.9 billion in 2024, is projected to grow to nearly US$60 billion in 2025 and reach around US$134.5 billion by 2032, reflecting a compound annual growth rate of 12.23 percent. However, these figures conceal notable regional and brand-specific variations that shape the market's dynamics. Experts indicate that while luxury watches may not consistently outperform traditional assets, selecting the right models at appropriate prices can yield favorable outcomes, sometimes surpassing the performance of gold or cash when inflation is taken into account. Recent trends in luxury watch exports reveal a mixed landscape. In 2024, Swiss watch exports totaled CHF25.9 billion (US$32.62 billion), yet the sector faced a decline of 2.8 percent compared to the previous year, largely influenced by reduced demand in China and Hong Kong. Conversely, North and South America emerged as the most dynamic markets, with a growth rate of 5.4 percent, and the United States solidified its position as a leading market for Swiss watches. The secondary market, which had been in decline since March 2022, began to show signs of recovery in 2025. Key indices tracking the performance of luxury watch brands indicated positive trends, suggesting a stabilization after years of decline. Altiero observed a shift in collector behavior, with buyers now prioritizing rarity, condition, and resale potential over mere speculation. The Gulf Cooperation Council (GCC) markets hold a distinctive role in the global luxury watch ecosystem. Altiero noted that Middle Eastern collectors tend to purchase fewer watches but select high-quality models, often holding onto them for extended periods. This approach influences global pricing trends, as these collectors typically do not engage in frequent buying and selling, thereby reducing supply and potentially enhancing the long-term value of their collections. In 2023, the Middle East saw a growth rate of 6 percent in the luxury watch market, with the UAE experiencing a notable increase of 12.2 percent. The Saudi Arabian luxury watch market was valued at US$270.11 million in 2024 and is expected to grow further by 2030. The region's affluent demographic, particularly in cities like Riyadh, has contributed to this growth, with a significant increase in the number of millionaires over the past decade. Looking ahead to 2026, experts predict a buyer's market, with ongoing interest from enthusiasts driving prices upward. However, trade policies, particularly tariffs affecting Swiss watch exports to the United States, have introduced complexities into the market. Despite a significant drop in exports following the implementation of higher tariffs, brands have adapted by increasing inventories in the U.S. market, leading to overall growth in the sector. In conclusion, Altiero advised potential investors to focus on timeless pieces that maintain their value, steering clear of trendy purchases. As the market continues to evolve, watches remain a viable asset for value storage and personal passion, provided they are acquired thoughtfully.

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