Home Furnishings Market in Saudi Arabia: Modern Interiors, Smart Living, Vision 2030 & Growth Outlook

According to IMARC Group's latest research publication, Saudi Arabia home furnishings market size reached USD 20.57 Billion in 2024. The market is projected to reach USD 43.79 Billion by 2033, exhibiting a growth rate (CAGR) of 8.76% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Home Furnishings Market

• Personalized Design Recommendations: AI-powered apps analyze room scans and style preferences to deliver customized furniture suggestions, with 40% of shoppers seeking personalized designs in Saudi Arabia's USD 1.2 billion smart home market.
• Augmented Reality Shopping: IKEA's AI Kreativ tool enables Saudi customers to scan rooms, remove existing furniture virtually, and test new pieces in augmented reality, reducing product returns and boosting buyer confidence in major urban centers.
• Smart Furniture Integration: Vision 2030's smart home initiative, valued at SAR 5.5 billion, incorporates AI into adjustable beds and tables that automatically adapt lighting and height for Riyadh's tech-savvy homeowners.
• Inventory Optimization: AI analytics help Saudi retailers minimize inventory waste by optimizing stock across 5.9 million urban households through real-time demand forecasting, improving supply chain efficiency and reducing costs.
• Sustainable Shopping Tools: Retailers like Almutlaq Furniture and Namshi use AI-driven AR previews to offer eco-friendly, space-efficient furniture options that appeal to environmentally conscious homeowners while cutting returns through better visualization.

How Vision 2030 is Revolutionizing Saudi Arabia Home Furnishings Industry

Vision 2030 is fundamentally transforming Saudi Arabia's home furnishings landscape through unprecedented infrastructure investments and housing initiatives. The government's USD 40 billion housing commitment aims to deliver 400,000 residential units through ROSHN, while major giga-projects like NEOM, Qiddiya, and The Red Sea Project are driving massive demand for both residential and commercial furnishings. The homeownership rate already reached 63.7% by 2023, moving closer to the 70% target, with over 700,000 housing units completed or under construction. Saudi Arabia's USD 150 billion construction spending allocation for 2025 creates systematic furniture requirements across luxury hotels, residential communities, and commercial facilities. The hospitality sector alone plans to open over 200 luxury hotels by 2030, generating substantial demand for custom and branded furniture. These initiatives are supported by regulatory reforms like the Privileged Residence Program and expanded mortgage financing, making property ownership more accessible to citizens and expatriates while fueling sustained growth in the home furnishings sector.

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Saudi Arabia Home Furnishings Market Trends & Drivers:

Saudi Arabia's rapid urbanization is reshaping the home furnishings market, with the urban population projected to reach 36 million as cities like Riyadh, Jeddah, and Dammam experience explosive growth. Riyadh alone has over 70,000 new housing units under construction, each representing complete furniture package opportunities. This urbanization wave is accompanied by rising disposable incomes, with average household income reaching approximately USD 3,197 monthly, enabling families to invest in premium and contemporary furnishings. The development of smart cities and mega-projects under Vision 2030 is creating massive demand for modern, functional furniture that matches the contemporary aesthetics of new residential properties. First-time homebuyers and young couples, particularly those benefiting from government housing programs, are actively furnishing their residences shortly after moving in, creating sustained demand across multiple furniture categories.

The digital revolution is dramatically reshaping how Saudis shop for furniture, with e-commerce furniture sales expected to grow by 15% and the online furniture market projected to reach USD 13.16 billion by 2034. Internet users for e-commerce reached 33.6 million in 2024, representing a 42% increase from 2019, while smartphone penetration at 99% enables seamless mobile shopping experiences. Major retailers have transformed their stores into fulfillment hubs, with digital furniture revenue tripling for IKEA Saudi Arabia between 2021 and 2024. Buy-now-pay-later services like Tamara's "Split in 6" option have lifted average order values by double digits, removing price barriers for mid-range buyers. Augmented reality room planners let customers visualize furniture dimensions and colors in their actual spaces before purchase, dramatically cutting return rates. E-commerce platforms offer convenience, vast product selection, and competitive pricing that traditional retail struggles to match, fundamentally changing consumer behavior.

Saudi consumers are increasingly drawn to modern, contemporary designs that reflect global trends while incorporating smart home features. The younger generation, comprising millennials and Gen Z who make up 27% of the population, favors sleek, minimalist furniture with multifunctional capabilities. Social media platforms like Instagram and Pinterest heavily influence purchasing decisions, with consumers seeking furniture that expresses individuality and sophistication. The cultural emphasis on well-furnished homes drives spending on quality pieces, while 80% of households expect furniture to accommodate work, study, and entertainment in multi-functional living arrangements. Local manufacturers now integrate wireless chargers, USB ports, and app-enabled lighting into tables and wardrobes, bridging technology and décor. This shift toward premium, customizable, and technologically integrated furniture is supported by expanding middle-class wealth and exposure to Western lifestyle trends. The hospitality sector's growth, fueled by tourism expansion, creates additional opportunities for commercial furniture suppliers targeting hotels, resorts, and restaurants seeking high-quality furnishings that meet international standards.

Saudi Arabia Home Furnishings Market Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

• Home Furniture
• Home Textile
• Wall Decor
• Others

Price Insights:

• Mass
• Premium

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Stores
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Home Furnishings Market

• October 2025: IKEA Alsulaiman invested SAR 70 million to expand its presence in Saudi Arabia, reinforcing the company's commitment to making home furnishings more accessible across the Kingdom and supporting Vision 2030's housing development goals.
• March 2025: Diriyah Company launched Armani Residences Diriyah, introducing Giorgio Armani's first branded residences in Saudi Arabia with 15 exclusive units featuring interiors personally curated by Armani, reflecting growing demand for premium home furnishings.
• March 2024: Al-Futtaim IKEA unveiled its innovative "Store of Tomorrow" in Saudi Arabia, designed to revolutionize retail by emphasizing play, discovery, and family-focused shopping experiences while maintaining accessibility and affordability.
• December 2024: Bentley Home expanded its luxury furniture presence in the Middle East with new showrooms in Riyadh and Jeddah housed within Dar Al Arkan Interiors, showcasing the 2024 collection including signature pieces like the Styal desk and Bayton sofa.

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