Saudi Arabia Luxury Market: Rising Affluence, Experiential Spending & Growth Momentum

According to IMARC Group's latest research publication, Saudi Arabia luxury market size reached USD 10.1 Billion in 2024. The market is projected to reach USD 23.3 Billion by 2033, exhibiting a growth rate (CAGR) of 9.7% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Luxury Market

• Personalized Shopping Experiences: AI-powered recommendation engines analyze customer behavior and preferences, delivering tailored product suggestions across digital and physical luxury stores, increasing conversion rates by 22% among Riyadh retailers.
• Virtual Try-On and AR Showrooms: Machine learning enables virtual fitting rooms and augmented reality experiences for luxury fashion and jewelry, reducing return rates while enhancing online luxury shopping engagement in key Saudi cities.
• Dynamic Pricing and Inventory Management: AI algorithms optimize luxury brand inventory forecasting and real-time pricing strategies, predicting demand patterns to ensure exclusive collections reach high-value Saudi consumers efficiently through omnichannel platforms.

• Enhanced Customer Service: AI-driven concierge services and Arabic natural language processing chatbots provide 24/7 personalized assistance, elevating the luxury shopping experience while maintaining human touchpoints for high-value transactions.
• Fraud Detection and Security: Advanced AI systems protect luxury transactions through real-time fraud detection and facial recognition technology at premium retail locations, reducing security incidents by 15% across major shopping districts.

How Vision 2030 is Revolutionizing Saudi Arabia Luxury Industry

Vision 2030 is fundamentally transforming Saudi Arabia's luxury sector by positioning the Kingdom as a global lifestyle and cultural destination. Mega-projects like NEOM, the Red Sea Project, Diriyah, and Qiddiya are creating entire luxury ecosystems worth over USD 63.2 billion, featuring flagship international brands alongside emerging Saudi designers. The government welcomed 60.9 million visitors in the first half of 2025, generating SAR 161.4 billion in tourism spending—a 4% increase year-over-year. Women's empowerment initiatives have dramatically expanded luxury consumption, with female workforce participation driving demand across fashion, automotive, and lifestyle segments. Regulatory reforms have removed entertainment restrictions and opened mixed-gender social spaces, while infrastructure investments include 186,000 square meters of luxury retail at Diriyah Square alone. Fashion retail sales are projected to reach USD 32 billion by 2025, with luxury posting 19% year-on-year growth—the fastest in the GCC region.

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Saudi Arabia Luxury Market Trends & Drivers:

The Saudi luxury market is experiencing explosive growth driven by rising affluence and economic diversification under Vision 2030. The Kingdom now hosts approximately 26 individuals with wealth exceeding USD 500 million, while ultra-high-net-worth individuals are projected to grow by 20% between recent periods. Riyadh and Jeddah lead this expansion with sophisticated shopping malls and exclusive retail destinations, while digital transformation accelerates with 79% of retail transactions now electronic, up from 70% the previous year. International luxury brands like Louis Vuitton, Gucci, and Chanel are rapidly expanding flagship stores in premium locations, tailoring exclusive collections to Saudi preferences. The Chalhoub Group's acquisition of 60% stake in luxury e-commerce platform Ounass for USD 150 million signals strong digital growth, complementing physical retail infrastructure expansion of nearly 1 million square meters under development.

Cultural liberalization and lifestyle aspirations are reshaping luxury consumption patterns, particularly among Saudi Arabia's young, fashion-conscious population. Women represent the largest luxury consumer segment, with female shoppers in beauty categories spending 55% more on average than men, according to Chalhoub Group data. The lifting of driving restrictions, expanded workforce participation, and growing social freedoms have fundamentally transformed female purchasing behavior across fashion, jewelry, and automotive luxury segments. Modest luxury fashion is thriving, with modern abayas and stylish modest wear becoming high-fashion statements rather than just traditional garments. Social media influence and celebrity endorsements drive demand, while events like Riyadh Season attract high shopping volumes. The 31-45 age demographic dominates luxury spending, characterized by higher disposable incomes reaching SAR 1.1 trillion projected levels and strong inclinations toward experiential luxury including wellness retreats, desert safaris, and exclusive cultural tours.

Experiential tourism and luxury hospitality investments are creating new consumption opportunities across the Kingdom. The tourism sector surpassed USD 10 billion in value, with anticipated visitor numbers reaching 100 million annually by 2030. Premium hotel chains including Ritz-Carlton, Four Seasons, and Waldorf Astoria are establishing properties linked to mega-projects, while branded luxury residences like the Armani Residences Diriyah attract international high-net-worth individuals. Heritage tourism at UNESCO sites combines with futuristic NEOM developments, appealing to diverse luxury travelers. Red Sea International Airport and enhanced connectivity facilitate affluent visitor access, while exclusive yacht charters, private golf courses, and gourmet culinary tours cater to experiential luxury demand. E-commerce platforms like Net-A-Porter, featuring Saudi brand Abadia, and luxury marketplace expansions by L'azurde on BigCommerce demonstrate omnichannel strategies. Virtual concierge services, AI-powered travel planning, and augmented reality sightseeing experiences are attracting tech-savvy luxury travelers, supported by Vision 2030's digital infrastructure investments that position Saudi Arabia as the region's innovation hub.

Saudi Arabia Luxury Market Industry Segmentation:

The report has segmented the market into the following categories:

Distribution Channel Insights:

• Mono-brand Stores
• Multi-brand Stores
• Online Stores
• Others

Category Insights:

• Travel and Hotel
• Cars
• Personal Luxury Goods
• Food and Drinks
• Others

Gender Insights:

• Male
• Female

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 Luxury Market

• August 2025: Rose Merc Limited announced the expansion of its Eternal Runway luxury fashion event to Bahrain and Saudi Arabia for Winter 2025, building on Dubai's success to elevate regional fashion storytelling and showcase local talent.
• July 2025: Saudi-founded luxury lifestyle brand Lavish Concepts opened its first permanent atelier in Chiswick, London, presenting curated fashion, jewelry, and art objects blending artisanal craftsmanship with cultural heritage and contemporary design.
• April 2025: Majid Al Futtaim revealed ambitious luxury retail expansion plans for 2025, introducing Italian brands Eleventy, Corneliani, and Poltrona Frau across UAE and Saudi Arabia following a 26% growth in its Lifestyle sector.

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