In recent years, a new growth dynamic has been observed in the art market, which is also influencing art law. The art world is moving to the Gulf States, particularly the United Arab Emirates (UAE), Qatar and Saudi Arabia.
This new dynamic is driven by the largest auction houses, art galleries, and museums, as well as by international collaborations. It brings new opportunities for entrepreneurs, artists, gallery owners, collectors, and other art lovers.
How the art market's activities shift to the Gulf States
The growing shift of the international art market's activities to the Gulf States indicates the emergence of a new cultural cluster. The art market is experiencing dynamic change, making the Gulf States one of the most important players, including in art law.
The emerging cultural cluster is being driven primarily by the initiative of government agencies and cultural institutions and the interplay between the gradual saturation of the European art market and the massive pent-up demand of the art market in the Gulf States.
The region boasts a rich cultural heritage and the financial resources to drive innovation and develop an art market infrastructure. This provides fertile ground for rapid and sustainable growth of the art market and cooperation with European countries on art law.
Alia Al-Senussi, PhD, Libyan Princess, Senior International Advisor for Art Basel Qatar and Advisor to the Saudi Ministry of Culture, says there are „incredible synergies" between Qatar, Saudi Arabia, and other art institutions: „I've built my career on helping everyone, and I firmly believe in the saying: 'A rising tide lifts all boats.'"
Pablo del Val, long-time artistic director of the Art Dubai art fair, also emphasizes that it's about building relationships in a region that will play an increasingly central role in the future of the global art market.
It is therefore worthwhile for entrepreneurs, artists, gallery owners, collectors, and other art lovers to familiarize themselves with the new growth dynamics of the art market and, with legal advice in art law, to develop a strategy for an early and efficient entry into it.
This requires specific expertise in art law with a focus on local and industry knowledge, enabling a step-by-step strategy to be developed to integrate into and benefit from the new art cluster.
Creating the Infrastructure for the Art Market
In recent years, the Gulf states have built bridges between the art and business worlds through cultural partnerships with each other and with European countries, continuous government investment in the art market, and the creation of financial incentives for art market participants.
Government funding for the art market is in the billions. The UAE government has now allocated almost 5.3 billion $ for the growth of art and cultural institutions. Forecasts predict that the market value of art tourism in the UAE will reach 1.3 billion $ by 2030.
The local art market infrastructure is being promoted by the emergence of new design districts and the establishment of numerous galleries, luxury hotels, and leisure facilities. For example, the former industrial district of Al Quoz in Dubai now houses more than 25 contemporary galleries.
In Doha, Qatar, countless galleries and public artworks are spread throughout the city, with investments also being made in European art. For example, Danish artist Ólafur Elíasson created the installation „Shadows Traveling on the Sea of the Day" in a nearby desert.
In addition, investments in the establishment of digital infrastructure through innovative platforms also benefit the art market and are becoming relevant in art law. Artists can present their art to a global audience using virtual galleries and online exhibitions, and entrepreneurs, gallerists, collectors, and other art lovers have a simplified way to discover and invest in local art.
Influence of (Ultra-)High-Net-Worth Individuals in the Gulf States
Evidence of the far-reaching growth of the art market is the migration of (Ultra-)High-Net-Worth Individuals (U/HNWIs), who view art as a commodity and an investment, to the Gulf States.
According to the 2024 Henley Private Wealth Migration Report, the UAE experienced a massive influx of U/HNWIs from Western countries, amounting to an increase of 6.700 millionaires by the end of 2024.
Regarding the Henley & Partners study, which predicts the number of millionaires in Dubai has doubled in the last ten years and is expected to double again by 2035, Ben Floyd, Managing Director of the Art Dubai Group, commented: „Undoubtedly, the luxury sector and art are benefiting from this."
„Post-COVID, Dubai has become a magnet for talent and money, and that means more people are buying homes, living here, and acquiring works of art," said Lebanese-French entrepreneur and art collector Elie Khouri.
The growing interest in art, the influx of U/HNWIs, and the cooperation between the Gulf states to create infrastructure are opening up new economic opportunities in the luxury and art sectors for art entrepreneurs. Legal advice on art law is essential when developing a business strategy and entering the Gulf States' art market.
Tax Advantages
A special feature of the Gulf States' art market infrastructure is the tax advantages. Entrepreneurs and artists, in particular, can benefit from attractive tax conditions.
For private individuals, tax advantages exist, for example, in the Emirates, where the tax rate for income related to private life is 0% (income tax). Thus, income that does not directly arise from entrepreneurial activity is classified as "private."
For example, wages and salaries from one's own business, rental income, and pensions can remain tax-free. Capital gains tax also does not exist in the Emirates, although dividends, profit distributions, and sales proceeds are also tax-free as private investments.
The numerous freeports in the Gulf region also allow the storage of works of art and collections without the levy of goods and services taxes (More about freeports).
For artists, basing their work in the Gulf region can also be advantageous from a tax perspective. If their activity is classified as „entrepreneurial," a uniform tax rate of 9% is only due if the annual profit exceeds €100.000.
When examining the specific tax law requirements and relocating one's tax residence, it is important to specifically examine whether and how individual income sources are relevant. Legal advice with expertise in tax and art law is therefore essential.
Auction Houses
The entry of the largest auction houses, Christie's and Sotheby's, is further evidence of the growth of the art market in the Gulf States, opening up entrepreneurial and artistic opportunities and and opens up new customer groups.
Sotheby's held the "Origins" auction in Saudi Arabia in February 2025 to mark the auction house's expansion and the opening of an office in Riyadh's iconic Al Faisaliah Tower. The inaugural auction was held in the historic At-Turaif district of Diriyah, near Riyadh, a UNESCO World Heritage Site.
It raised 17 million $ and attracted bids from 45 different countries. Approximately one-third of the buyers were from Saudi Arabia.
The auction house Christie's, which has had an office in Dubai since 2005, reports that 15% of its new clients in the last three years come from the Gulf region and Africa. Anthea Peers, President of Christie's Europe, the Gulf States and Africa, comments: „The United Arab Emirates and the entire Gulf region are a market with great potential. We are very excited about this."
The auction house Sotheby's also has its own gallery in Dubai, where it hosts events, lectures, and exhibitions, and initiates sales. Most recently, an exhibition was organized in collaboration with the Abu Dhabi Investment Office in the cultural district of Saadiyat Island. A collection of colored diamonds valued at 100 million $ was exhibited at the private Bassam Freiha Art Foundation.
Collaborations with international art and cultural institutions
The new growth dynamic of the art market in the region is particularly evident in the realization of large-scale art projects in collaboration with international art institutions and the increasing success of art fairs.
For example, the Louvre Abu Dhabi on Saadiyat, which opened in 2017 following an agreement with the French government and cost over 650 million $. It has been declared the „world's first universal museum" because it presents "the connections between seemingly disparate civilizations and cultures around the world" through a chronological exhibition.
The Guggenheim Abu Dhabi, which, at 42.000 square meters, will be the largest of the four Guggenheim outposts, is expected to open in 2026. Like the Guggenheim Bilbao, it will be designed by architect and designer Frank Gehry.
H.E. Mohamed Khalifa Al Mubarak, Chairman of the Department of Culture and Tourism in Abu Dhabi, said: „Guggenheim Abu Dhabi strengthens Abu Dhabi's position as a dynamic center for art and culture. As the region's leading museum for global modern and contemporary art, Guggenheim Abu Dhabi will provide a fair platform for art from around the world. [...] Guggenheim Abu Dhabi, along with other cultural institutions such as Louvre Abu Dhabi and Zayed National Museum, will undoubtedly make a significant contribution to a thriving creative scene."
Art Fairs: Art Basel Qatar and Art Dubai
Another significant development is the expansion of one of the world's most important art fairs, Art Basel, to Doha, Qatar, in 2026. Alia Al-Senussi, who played a key role in the development of Art Basel Qatar, anticipates that the new fair „will help attract collectors and foster dialogue," not only in Qatar but throughout the region.
Noah Horowitz, Managing Director of Art Basel, emphasizes that the growth of the global art market, the support of artists and galleries, and the development of new collectors are at the heart of Art Basel's mission. The art scene in the Gulf states has „experienced exponential growth in recent decades, with the establishment of world-class institutions, the launch of leading cultural events, and the growth of a vibrant community" of artists, galleries, and professionals.
The art fair's expansion is not only creating new economic opportunities directly in the art sector and art law. For example, the airline Qatar Airways has signed a partnership with Art Basel Qatar.
In addition, the established art fair Art Dubai has developed into an institution for international collectors, artists, gallerists, entrepreneurs, and art lovers in recent years. Its last edition attracted over 15,000 visitors from all over the world and brought together more than 400 artists and galleries from 65 countries.
It also demonstrates that alongside high-end art, there is a market for more affordable art, offering art collectors, entrepreneurs, and potential investors exciting prospects for diverse new art. New artists are being promoted, for example, through initiatives such as the WAD Emerging Artist Prize from Art Dubai and Rove Hotels.
Résumè
Government investment, the development of an art market infrastructure, tax incentives, and strong networking are making the Gulf region a significant new location for entrepreneurs, artists, and collectors, which is being tapped into by world-renowned auction houses, museums, and art fairs.
This is also the view of dtb-attorney and art law and luxury brands expert Leon van Lee. „The growth dynamics of the global art market are increasingly shifting to the Gulf States. Early positioning with legal support is crucial to benefit from this new development."
Status 03.07.2025