KSA Gold and Diamond Jewelry Market Outlook to 2028

KSA Gold and Diamond Jewelry Market Overview

• The KSA Gold and Diamond Jewelry market is valued at USD 5 billion, driven by the growing affluence of the Saudi population and a cultural preference for precious metal and gemstone jewelry. Demand for high-end gold and diamond jewelry remains robust, fueled by increased disposable incomes and the popularity of luxury goods in Saudi Arabia, particularly for weddings and special occasions. Additionally, global gold prices have influenced consumer spending on gold jewelry, contributing to this sector's market size.

• The primary cities driving the market are Riyadh, Jeddah, and Dammam. Riyadh's position as the capital and largest economic hub enables higher consumer spending on luxury items, including jewelry. Jeddah's historical and cultural affinity for gold jewelry further solidifies its role in the market, while Dammams proximity to oil wealth and an affluent population make it another key player in the market. These cities hold substantial economic power, leading to greater demand for high-end jewelry.
• The Saudi government has allocated SAR 120 million to support local jewelry brands in expanding internationally. This fund encourages exports by providing tax incentives and logistical support to Saudi brands, helping them reach markets across Europe and Asia and boosting the global footprint of KSAs jewelry industry.

KSA Gold and Diamond Jewelry Market Segmentation

By Type of Jewelry: The market is segmented by jewelry type into gold, diamond, gemstone, and platinum jewelry. Gold jewelry holds a dominant position in this segmentation, largely due to its deeply rooted cultural significance and preference for gold as a traditional investment and a symbol of wealth in Saudi Arabia. This segment is further driven by a wide array of gold jewelry designs catering to varying occasions, from weddings to festivals, reinforcing its position as the leading segment.

By Product Type: The market segmentation by product type includes rings, necklaces, bracelets, earrings, and pendants. Rings have a dominant share due to their popularity for both wedding and personal adornment purposes. The continuous demand for rings, especially among young consumers who seek fashionable and personalized pieces, has helped solidify their place as a top product choice in the market.

KSA Gold and Diamond Jewelry Market Competitive Landscape

The market is characterized by the presence of both regional and international brands, offering a diverse range of luxury jewelry. Leading players such as Lazurde, Damas Jewellery, and Malabar Gold & Diamonds dominate the market with extensive retail networks and brand equity.

KSA Gold and Diamond Jewelry Market Analysis

Market Growth Drivers

• Rising Consumer Demand for Gold and Diamond Jewelry in KSA: In 2024, KSA saw over 900,000 units of gold and diamond jewelry purchased, largely driven by local celebrations and gift-giving traditions. This demand surge aligns with KSAs growing population, projected to reach around 37 million in the near term, highlighting a robust consumer base. This cultural affinity, combined with a significant shift towards luxury goods among high-net-worth individuals (HNWIs) with assets totaling over $800 billion in KSA, strengthens the jewelry markets growth trajectory.
• Increasing Investment in High-Value Jewelry Products: The KSA market has seen a notable rise in the acquisition of high-value jewelry, with investments in gold and diamond products valued above 100,000 SAR steadily increasing. This is supported by the growth in private wealth assets in KSA, which are anticipated to cross SAR 3 trillion, reflecting a strong propensity for luxury asset investment.
• Expanding Tourism Sector Bolstering Jewelry Sales: With tourism receipts in KSA expected to surpass SAR 90 billion in 2024, especially with projects like NEOM and Red Sea tourism, gold and diamond jewelry sales are seeing growth in high-end retail locations in key tourism destinations. Tourists, particularly from high-spending regions like China and Europe, have contributed to a 15-20% spike in jewelry retail revenues in tourism-centric areas, making this an influential driver for the market.

Market Challenges

• Fluctuating Gold Prices Affecting Consumer Purchase Behavior: Global economic instability in 2024 has led to fluctuations in gold prices, reaching highs above SAR 225 per gram, which has led consumers to be cautious with high-value purchases. This instability impacts the gold jewelry segment, creating unpredictability in sales and causing certain consumer segments to seek alternatives or delay purchases.
• Limited Skilled Workforce in Jewelry Crafting and Design: KSAs jewelry market has been constrained by a shortage of locally skilled artisans, with only 12,000 qualified craftsmen for a market with a substantial demand for uniquely designed pieces. This talent gap affects local production capabilities, driving up costs for imported or outsourced labor, which in turn influences pricing and limits local creative expansion.

KSA Gold and Diamond Jewelry Market Future Outlook

Over the next five years, the KSA Gold and Diamond Jewelry industry is anticipated to experience consistent growth, supported by continued consumer demand for luxury products and the cultural affinity for gold and diamond jewelry.

Future Market Opportunities

• Expansion in Digital Jewelry Sales Channels: In the coming years, KSAs jewelry market will see a shift towards digital platforms, with sales through online channels projected to exceed SAR 500 million by 2028. The growth in e-commerce will cater to younger, tech-savvy customers, with an emphasis on convenient and transparent shopping experiences.
• Increased Integration of Sustainable and Ethical Sourcing Practices: As demand for ethically sourced products continues, the KSA jewelry market will focus more on sourcing diamonds and gold through certified ethical channels. By 2028, nearly 250,000 ethically certified diamonds are expected to enter the market annually, driven by heightened consumer awareness and stricter regulatory requirements.