Saudi Arabia jewelry Market Outlook to 2028

Saudi Arabia Jewelry Market Overview

• The Saudi Arabia jewelry market, valued at USD 3.80 billion, is primarily driven by a combination of rising disposable incomes, increased tourism, and a growing demand for luxury goods. With the countrys Vision 2030 program encouraging diversification away from oil, there has been an increase in consumer spending on high-end products, including gold and diamond jewelry. Additionally, Saudi Arabia has a strong cultural preference for gifting jewelry during weddings and festive occasions, which continues to propel the market.
• Dominant cities like Riyadh and Jeddah are key hubs for the jewelry market in Saudi Arabia due to their affluence and concentration of high-net-worth individuals. Riyadh, being the capital and economic center, hosts the highest number of luxury jewelry brands. Meanwhile, Jeddah's proximity to Mecca makes it a hotspot for pilgrims who purchase jewelry as souvenirs or gifts, particularly during religious festivities. Both cities benefit from robust retail infrastructure and a high influx of tourists.
• The implementation of a 15% Value Added Tax (VAT) on luxury goods, including jewelry, has affected pricing strategies across the Saudi market. This tax has led to an increase in the overall cost of jewelry, prompting retailers to adjust their pricing models to remain competitive. In 2024, VAT revenue from jewelry sales contributed to a significant portion of the governments total tax income, highlighting its impact on both consumers and businesses. The Saudi governments taxation policies continue to influence market dynamics.

Saudi Arabia Jewelry Market Segmentation

Saudi Arabias jewelry market is segmented by product type and by distribution channels.

• By Product Type: Saudi Arabias jewelry market is segmented by product type into Gold Jewelry, Diamond Jewelry, Silver Jewelry, Gemstone Jewelry, and Platinum Jewelry. Among these, Gold Jewelry holds a dominant market share due to the cultural affinity for gold in Saudi society. Gold jewelry is deeply ingrained in local traditions, particularly for weddings and religious events, where gifting gold is considered auspicious. Additionally, fluctuations in global gold prices impact this segment, with consumers often purchasing during price drops. Popular brands like L'azurde Company have capitalized on this demand by offering a wide range of gold products to cater to various customer preferences.
• By Distribution Channel: The market is also segmented by distribution channels into Online Retail, Specialty Stores, Department Stores, Gold Souks, and Direct Selling. Specialty Stores dominate this segment, accounting for the highest market share in 2023. Consumers prefer purchasing high-value items like gold and diamonds from trusted, established stores that offer a guarantee of authenticity. Specialty stores are well-regarded for providing a personalized experience and offering a curated selection of luxury items, making them a popular choice for high-end consumers in Riyadh, Jeddah, and Dammam.

Saudi Arabia Jewelry Market Competitive Landscape

The Saudi Arabia jewelry market is characterized by a mix of local and international players, with a few key companies dominating the landscape. Major brands like L'azurde and Damas have a strong foothold, offering a wide array of products that cater to both high-end and mid-range customers. In addition to these, international luxury brands like Cartier and Bvlgari continue to expand their presence in the region, leveraging Saudi Arabias growing appetite for luxury items. These companies have the advantage of strong brand recognition, extensive retail networks, and the ability to meet the local demand for high-quality, certified jewelry.

Saudi Arabia Jewelry Industry Analysis

Market Growth Drivers

• Rising Disposable Income (Luxury Consumption Patterns): Saudi Arabias per capita income increased to USD 26,400 in 2024, driven by the Kingdom's diversification efforts under Vision 2030. This growth in disposable income has directly influenced consumer spending on luxury goods, including high-end jewelry. The demand for gold, diamonds, and luxury watches has surged as affluent consumers prioritize investing in fine jewelry as a status symbol. The countrys upper-middle-class population, comprising over 12 million individuals, continues to exhibit a robust demand for luxury items. These trends are supported by government data on household income and spending patterns.
• Increased Tourism (Cultural Jewelry Demand): Tourism in Saudi Arabia saw a notable rise, with 23 million visitors in 2023, according to official statistics. This influx, particularly during Hajj and Umrah seasons, significantly boosted demand for cultural jewelry pieces like traditional Arabian designs, gold necklaces, and gemstone-embedded ornaments. Foreign tourists frequently purchase jewelry as souvenirs, especially items reflecting Saudi craftsmanship. The government's initiatives to enhance the tourism sector, such as the introduction of e-visas and promoting cultural heritage, directly fuel the growth of the jewelry market. Source.
• Evolving Fashion Trends (Influence of Western Styles): Western fashion influence has seen substantial growth, with younger Saudi consumers increasingly opting for contemporary and minimalistic jewelry designs inspired by global trends. In 2024, 40% of the urban population in major cities like Riyadh and Jeddah adopted Westernized fashion preferences, integrating Western jewelry styles like silver and platinum pieces. This shift is a result of the growing exposure to international media and the increase in high-end international jewelry retailers entering the Saudi market, enhancing consumer choices.

Market Challenges

• Fluctuating Gold Prices (Impact on Consumer Spending): In 2024, the average price of gold hovered around USD 1,920 per ounce, a considerable fluctuation from previous years. These variations have directly impacted consumer purchasing behavior in Saudi Arabia, particularly among middle-class buyers who are sensitive to price changes. This volatility affects the jewelry market as gold accounts for 60% of the materials used in Saudi jewelry, making affordability a significant concern. The Saudi Ministry of Finance has acknowledged that unpredictable gold prices are a key challenge for jewelry retailers. Source.
• Regulatory Restrictions (Customs and Import Duties): Saudi Arabia imposes a customs duty of 5% on imported jewelry, as outlined by the General Authority of Zakat and Tax (GAZT) in 2024. These duties increase the cost of imported luxury jewelry, limiting access to international brands for the average consumer. Additionally, bureaucratic delays in customs clearance often disrupt supply chains for retailers, particularly those relying on imported goods. The GAZTs regulatory framework continues to present challenges for market entrants and businesses importing large volumes of jewelry.

Saudi Arabia Jewelry Market Future Outlook

Over the next five years, the Saudi Arabia jewelry market is expected to experience steady growth, supported by the increasing disposable incomes of Saudi citizens and an influx of foreign tourists. Furthermore, government initiatives such as Vision 2030, which aim to diversify the economy and promote local manufacturing, are anticipated to boost the demand for domestically produced jewelry. The shift towards e-commerce platforms for luxury goods is another factor likely to influence the market as consumers increasingly opt for the convenience of online shopping. Sustainability concerns and ethical sourcing are expected to play a larger role in consumer decisions moving forward.

Market Opportunities

• Increasing E-Commerce Adoption (Digital Jewelry Sales Platforms): In 2024, Saudi Arabia recorded a 32% year-on-year increase in online retail, driven by growing consumer confidence in e-commerce platforms. Jewelry sales via digital platforms surged, contributing to over USD 500 million in online transactions. The Saudi Communications and Information Technology Commission (CITC) reports that 90% of urban consumers in Riyadh and Jeddah are now comfortable purchasing luxury items, including jewelry, online. This growing trend offers an opportunity for jewelry retailers to expand their digital presence and reach a broader audience.
• Demand for Bespoke Jewelry (Customization Trends): Customization is emerging as a key trend in Saudi Arabias jewelry market. In 2024, bespoke jewelry sales grew by 18%, reflecting a rising demand for personalized designs. This trend is particularly strong among high-net-worth individuals, who seek exclusive, custom-made pieces. The availability of advanced technology, such as 3D printing, enables jewelers to offer intricate designs tailored to individual preferences. Saudi jewelers are increasingly offering custom-made jewelry to cater to this growing demand, supported by government-backed SME programs promoting artisanal businesses. Source.