Operating in Uncertainty: How the GCC Fashion Ecosystem Is Adapting


A note from Karin & Liya

Welcome to our March newsletter. The past few weeks have continued to test the region in ways that extend beyond business. While day-to-day life has largely resumed, an underlying sense of uncertainty remains, shaping how companies operate, make decisions, and plan ahead. Logistics disruptions, softer demand, and increasingly unpredictable retail calendars have created real challenges for businesses of all sizes. At the same time, the region’s infrastructure and market dynamics have demonstrated a notable level of adaptability, accelerating a necessary shift towards resilience.

This month, we focus on what it takes to operate in this environment and the lessons emerging in real time as brands rethink how to future-proof their businesses.


NVIDIA x Catches = Next Gen of Virtual Try-On

Back in January, we tested out Zara’s virtual trying-on feature, and the big takeaway was that it did not solve the sizing issue. And that was largely the issue with all virtual try-on solutions - until now. At the NVIDIA GTC 2026 conference this month, AI startup CATCHES unveiled "RealFit," a generative AI sizing tool that finally brings the laws of physics to the digital fitting room. By simulating fabric drape, weight, and movement in real-time on a user’s "digital twin," the platform (already live with luxury brand AMIRI) aims to solve the $12B return problem by showing exactly how a garment fits before it's shipped.


Antler April intake in Dubai

In early March, Antler opened applications for its April 2026 Dubai residency, continuing to position the UAE as a launchpad for early-stage founders across AI, fintech, and consumer. The startup accelerator programme brings together individuals at the idea stage to build companies from scratch, with capital, mentorship, and access to a global network. While FashionTech is still emerging locally, this early-stage infrastructure is critical to shaping the next generation of founders building at the intersection of technology and commerce.

We would love to see more FashionTech founders applying. Recent cohorts have already produced companies like Enstyle, an AI-powered trend-forecasting and assortment intelligence platform for fashion teams, and Aesty, an AI closet companion app that helps users organise wardrobes, generate outfits, and discover shoppable looks. These are early signals of what the category can become in the region.


This month, we published a deep dive into one of the most pressing challenges facing the industry right now: logistics disruption across the Middle East.

The report unpacks how a third major shock to global supply chains is playing out in real time, and why its impact is not evenly distributed. While large retailers are able to absorb delays and reroute at scale, independent brands are facing a very different reality, with limited supplier optionality, rising costs, and increasing pressure on already tight margins.

More importantly, it explores what this moment signals in the longer term. The shift from reactive to intelligence-led operations is no longer theoretical. It is happening now, and the brands that build visibility and resilience into their supply chains will be the ones that come out stronger.

You can download the full report here


Webinar: Navigating the GCC Logistics Crisis

Following the release of the report, we will be hosting a LinkedIn webinar on Thursday, April 2nd, to unpack what is happening on the ground and what it means for fashion and e-commerce operators in the region.

If you are a founder, operator, or brand navigating supply chain uncertainty, this session will give you a clearer view of what to prioritise next.

→ Register for the webinar


This month’s Founder Spotlight features Yalla BB, a UAE-based pre-loved fashion marketplace rethinking how resale works in the region.

Founded by Muriel Espagnet and Sebastien Coquet, Yalla BB is building infrastructure to unlock one of the most underutilised assets in fashion: existing wardrobes. With over 15,000 items already on the platform and early signs of daily transaction activity, the model is beginning to validate both demand and liquidity in the local market.

What also stands out is the team’s focus on reducing friction, from AI-powered listings to pricing intelligence. In a region where resale has largely existed through informal channels, this signals a shift towards more structured, scalable circular ecosystems.

Read the full interview here


Catch up: Articles and Events from March 2026

Why Live Commerce Wins in the Age of AI Slop

As generative AI lowers the barrier to producing high-quality content, the competitive edge is shifting. When everything looks polished, differentiation comes from what feels real. This article explores why live commerce is gaining momentum as a more authentic, interactive, and commercially effective format in the age of AI-generated content.

TLDR:

  • Live commerce is shifting influence from static, curated content to real-time, interactive experiences
  • Authenticity and trust are becoming stronger drivers of conversion than visual perfection
  • The next phase of commerce will blend entertainment, community, and transaction in a single format

Read the full article here


WhatsApp EMEA Business Summit (online)

In the last week of February, Meta hosted an online event, which was a summarised version of their in-person summit hosted in January 2026 in Dubai for over 370 of their partners and clients from the EMEA region.

The summit highlighted how messaging has become the default way customers want to interact with brands, with over 70% of adults preferring it to traditional channels and businesses seeing higher engagement, conversion and satisfaction as a result.

Speakers from Meta, BCG, Air France, Alshaya and others showcased real case studies across industries, while Meta unveiled new features like ads in Status, call ads, WhatsApp usernames and Business AI agents. The core message: companies that redesign customer journeys around rich, AI-powered messaging will be best positioned to drive growth and loyalty in the years ahead.

Here are some key takeaways we found interesting:

  1. Messaging is now the primary customer channel. Across EMEA, customers overwhelmingly prefer messaging over calls and email, with 70%+ saying they trust and prefer brands they can message directly, making WhatsApp a core, not optional, channel.
  2. Rich messaging drives measurable business impact. Case studies from Air France, Lulu Hypermarket, Lenovo, Meta and others showed higher open rates, 3–10x stronger engagement and conversion, better ROI, and lower service costs when journeys are moved into WhatsApp.
  3. AI is shifting interactions from conversations to resolution. Predictive, generative and agentic AI are being layered onto messaging to personalise experiences, automate support, and actually resolve issues end‑to‑end, while still allowing seamless handoff to human agents.
  4. End-to-end journeys beat isolated use cases. Brands that connect multiple use cases (utility, authentication, service, marketing) into one continuous WhatsApp thread see significantly higher lifetime value, lower acquisition costs and better customer satisfaction.

Closing Thoughts

If you enjoyed this newsletter, please share it with anyone in your network who might be interested in how technology is reshaping fashion in the Middle East and beyond.

Follow us on LinkedIn and Instagram to stay updated… and if you’re building something exciting in FashionTech, we’d love to hear from you.

Until next month,
Karin & Liya
Co-Founders, FashionTech Middle East

Copyright (C) 2026 FashionTech Middle East. All rights reserved.

Dubai, UAE
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FashionTech Middle East

We are a tech-intelligence Hub at the intersection of fashion, luxury, and emerging technology. Based in the UAE, we help brands, retailers, and enterprises navigate the evolving landscape of AI, blockchain, and digital innovation.

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