Luxury in Saudi Arabia: The Story of Unlimited Opportunities

March 2023

The global luxury goods industry is witnessing a recovery, and is expected to reach pre-pandemic levels in 2023. Gulf Council Countries like Saudi Arabia and the UAE witness are recovering, as the countries welcome tourists. The outlook remains optimistic, as Saudi Arabia is seeing economic growth and meeting international standards of entertainment and leisure. Businesses are aligning with consumers’ perception of heritage, sustainability and digitalisation for a luxury experience.

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This report comes in PPT.

Key findings

A solid vision with a focus on diversification of the economy is apparent in major projects, all enabling luxury

The diversification of the economy and the improvement of consumers’ lifestyle are crucial factors in the growth of the luxury sector. Diversification will be largely generated by “giga projects” and other major developments, worth hundreds of billions of dollars. These projects will create a fertile environment for luxury brands in Saudi Arabia, and the country is expected to become a top global tourist destination by 2030.

Demand for luxury is being driven by affluent groups, Gen Z, female consumers and wealthy tourists

Saudi Arabia was home to 117,000 millionaires in 2022, with a considerable number of UHNWIs and a large Gen Z population who support the luxury sector, as luxury shoppers around the world are getting younger. The increasing participation of women in the workforce and recent social changes further support consumers’ appetite for luxury. The boom in tourism, in particular luxury travel, will be an asset in developing the country’s luxury market.

Connecting with the culture is critical to personal and experiential luxury brands, with diversification efforts introducing new destinations

Luxury brands need to understand that connecting with local culture and heritage are still an essential element of luxury for Saudi consumers, despite the country’s increasing openness to the world. This is already being witnessed among fashion, beauty and jewellery brands. A wellness island, a luxury island catering to the yachting community, and a ski resort in the desert are among the destinations that are expected to attract luxury travellers.

Saudi’s luxury market is home to a growing number of local brands, along with the international behemoths

International luxury brands should leverage the government push and tap into the attractive Saudi market to capture the growth in sales, while local brands can leverage their understanding of local consumers and their cultural connection.

Key findings
Saudi Arabia is a key wealth market, home to over 117,000 affluent adults in 2022
One of the fastest economies in the world, fuelling growth for luxury
Understanding the rising sophistication of Saudi luxury consumers is critical to success
Opening Saudi Arabia to the world through Vision 2030
Giga projects by the Public Investment Fund (PIF)
Ministry of Culture showcasing the country’s rich heritage to people globally
Core industries to benefit from premiumisation to complement Saudi consumer lifestyles
Arab world’s local flavour and benefits of global and regional collaborations
Premium beauty and personal care market supported by health and wellness trend
Luxury beauty brands benefit from trends in personal care routines
Arabian Oud representing the story of heritage and landmarks through scent
Saudi Arabia opening to the world through international luxury beauty brands like Dior
Luxury fashion brands help to bridge communication between local and international players
The National Museum of Saudi Arabia hosts Van Cleef & Arpels exhibition
Fashion Commission communicating fashion through a unified ecosystem
Gucci Nojum collection influenced by Arabic word for “stars”
Transformation in retail infrastructure to complement luxury market
Destination VIA Riyadh brings a new era of luxury
Luxury travel anchored by sustainable tourism set to be a government-led focus
Diversification in entertainment destinations attracts wealthy tourist from around the globe
Mega projects to meet Vision’s 2030 goal for unrivalled luxury
Saudi Arabia has the world’s largest hotel pipeline, and leading luxury hotels begin to open
PIF’s hospitality brand Boutique Group will transform historic palaces into ultra-luxury hotels
The Chedi Trojena, the first luxury snow retreat in the region, to open in Neom in 2026
Concierge services introduced to cater to wealthy tourists
Strong push from fine dining restaurant as luxury destinations emerge in the country
MAIZ, the first Saudi fine dining restaurant backed by the Ministry of Culture and DGDA
Saudi Arabia’s vision for innovative mobility ecosystem solutions to benefit luxury cars
KSA’s first car brand, Ceer, to have licensed component technology from BMW
Key takeaways: the three pillars of strength

Luxury Goods

This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.

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