Saudi Arabia can soon emerge as the top luxury destination of the Middle East, according to market research company IMARC Group.
The Group expects the segment to reach $15.8 billion by 2028, growing at a compound annual growth rate of 11.6 per cent between this year and 2028.
This comes as high-end brands such as Gucci, Louis Vuitton and Chanel have unveiled flagship stores in the country, while fashion houses Tiffany and Mulberry have ramped up their presence by establishing mono-brand outlets.
Thanks to the Saudi Arabia’s focus on its economic diversification, improvement of consumers’ lifestyles and high per capita income, the country has witnessed increased spending on luxury products.
Apparently, the surging demand for luxury is driven by affluent groups, namely Gen Z, female consumers and wealthy tourists.
The country had 117,000 millionaires in 2022, according to Euromonitor International’s data, which implies a strong presence of ultra-high-net-worth individuals.
“Unique offerings boasting excellent service quality, premium and personalized experiences, and constant innovation, are winning consumers’ loyalty in Saudi Arabia.”
Accelerating the participation of women in the workforce and recent social changes also fuels consumers’ zest for luxury.
Last year, Saudi’s luxury goods retail market was estimated to be worth $14.24 billion by 2027.
It has become a consensus that the proliferation of cutting-edge shopping malls grants luxury labels ample space to broaden the scope of their operations in the region.
