Dubai and luxury are nearly synonymous. The city is home to the world's tallest tower, massive man-made islands in the shape of palm trees and a fleet of police cars that includes a Ferrari, a Lamborghini and a $US2.5 million ($A2.68 million) Bugatti Veyron.

Now, to boost its glamour factor and economy, the city has its eyes set on the multi-billion-dollar-a-year global fashion industry, which is currently dominated by the US, Europe and Japan. But in the Middle East, Dubai is the powerhouse, raking in almost half of the region’s market share of retail…