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.
This report comes in PPT.
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.
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.
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.
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.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.See All of Our Definitions
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