Sotheby’s Abu Dhabi Collectors Week is about the luxury market, not the art

Editor’s Note: This story is part of a new series about the fusion of art and luxury. See all reports on this topic here.

Billionaire Patrick Drahi’s master plan turns Sotheby’s into a luxury retail beast to get steroid injections in December, when the house held Abu Dhabi Collectors Week, its first luxury luxury goods sale in the emirate. Formula One, the fastest Aston Martin, heavy diamonds, rare Rolex and other expensive shining things will be from December 3 to May 5. In the promotional video that Sotheby’s described it as the “world’s new capital of art, culture and luxury” everyone will be in the city.

Sotheby established a relationship with Gulf State officials last summer when it sold its minority stake to Abu Dhabi’s sovereign wealth fund and investment company ADQ. As part of the deal, ADQ purchased the newly issued Sotheby stock to “reduce leverage and support the company’s growth and innovation plans,” a statement said at the time. Despite this, Drahi remains a major shareholder and sends additional funds to the auction business under the agreement. The total planned investments for ADQ and Drahi are $1 billion. Now you can add Sotheby’s to get Collector Week support from the state-owned Abu Dhabi Investment Office.

This is far from the only money in the UAE in arts and culture. In 2021, Abu Dhabi set aside $6 billion to develop its creative industry, and in addition to the $27 billion allocated to Saadiyat Island to Saadiyat Island, featuring the Louvre Abu Dhabi, Louvre Abu Dhabi, incoming Guggenheim Abu Dhabi and Zayed National Museum.

But, there is no doubt that the UAE’s desire for art has become fainter than the desire for luxury goods, and there is no doubt that it is a true follower of Sotheby’s market.

According to a latest report by Dubai retailer and distributor Chalhoub Group, the Middle East luxury market soared 6% last year to nearly $13 billion. A survey published by Boston Consulting Group in partnership with Italy’s top luxury record company Altagamma predicts that the size of the Middle East luxury market will grow to 2030 and to $3.5-40 billion, especially driven by the UAE, especially Saudi Arabia.

For comparison, Arttactic reported that sales of contemporary art at auctions in the Middle East and North Africa generated only $22.8 million in 2024. Demand is growing, which is 223% in 2023.

Still, it makes it clear that Sotheby’s didn’t hold an art sale during Collectors Week, it’s just a non-sales show that includes works from old masters to modern ones. Sotheby’s’s art sales in 2024 fell 31% from the same period last year, generating $3.8 billion. On the other hand, consolidated luxury sales for the home have tripled since 2019, exceeding $2 billion last year, accounting for one-third of the $6 billion of Sotheby’s in 2024.

Is it reasonable that Sotheby’s luxury sales may one day surpass its art deal? He said Artnews This luxury is part of Sotheby’s growth strategy and is also an “important addition to the business arts.”

“Creating value not only involves more sales, more categories and more customers, but also related to the interaction between art and luxury,” he wrote in an email. “From Patek to Patek, Fontana to Ferrari to Birkel to Basquiat, we’ve been seeing art collectors involved in luxury goods, luxury collectors pursuing fine art.”

Despite the obvious demand in the region, Sotheby’s first shot of selling luxury goods in Saudi Arabia in February this year is incredible, although it is indeed valuable market research. The two-part auction was in the first half of the year, which included Western and Islamic modern and modern art, while the second half of the year offered luxury goods, totaling $17.3 million (only below its $14 million, estimated at $20 million). One third of the land sold to local buyers. One-third of bidders are under 40 years old. However, only 77 of the 117 batches sold (a 65% sell rate), with price confidence (% of lots sold above sold) at just 17.9%. About half of the 28 jewelry lots are not sold, and 8 of the 17 handbags are not sold.

Daniel Langer, founder and CEO of global luxury brand strategy company Équité, told Artnews While Sotheby’s Saudi outing is “decent”, the speed of selling and unsold plots make it clear that “momentum won’t happen alone on the brand name.”

“The Saudi results show what global data have told us: the demand for luxury goods is not an agent for strong auction results,” Lange continued. “The top of the art market is soft, interest rates remain a headwind for art-backed financing, and globally, some highly promoted batches are struggling.”

When asked whether Saudi results shaped Sotheby’s strategy for Abu Dhabi Collector Week, Puran avoided the question.

“We have taken a completely unique approach in every way, and in December we expect a hybrid of global, regional and local engagement to participate and compete for the incredible property we curated,” said the luxury director of the house. “The focus of Abu Dhabi Collectors Week is really on planning. These are things you can’t just walk into a boutique to buy – they are unique or super rare, often unique, often unique, and often have extraordinary sources. This level of exclusivity is the level of sales.”

Among the top cars offered are a one-off 2017 Pagani Zonda 760 Riviera, pearl white, with blue trim and exposed carbon fiber (estimated: $95 to $10.5 million), and the rare 2010 Aston Martin One-77 (estimated: $1.6 million to $1.6 million). Sales also include the “unusually rare and coveted” Rolex Oyster Albino’ Daytona Watch (estimated: $500,000 to $1 million), and the largest “fancy vivid orange pink” diamond ever, almost 32 carats (estimated: $50,000 to $7 million). The last batch was part of a single-person sale, with a total estimated $20 million.

Sotheby’s had three high estimates of their luxury goods sales in New York in June: its handbags and accessories auctions totaled $2.5 million (estimated: $22-3.2 million); fine jewelry made $8.4 million (estimated: $64-6.5 million); high jewelry generated $31.4 million (estimated: $21-21.6 million). That was a nice form to enter Abu Dhabi.

Langer of Équité believes that for Sotheby’s success in Abu Dhabi, it must “curate cultural relevance, clear source and cautious rarity, rather than chasing headlines.” Second, he added that the house should turn a week into a “learning and belonging journey, not just sales.” According to Langer, this means building a close relationship through a private preview in the collector’s home or providing tailored financing guidance. Finally, sales must act as the “social core of multi-day planning.”

“If Sotheby’s implements education-first, hyper-personalized client strategies and treats the collector’s week as a cultural moment rather than a transaction event, Abu Dhabi can surpass Saudi debut and set a new benchmark for the region,” he said.