According to the latest report by IMARC Group, titled “Saudi Arabia Luxury Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026,” the Saudi Arabia luxury market exhibited moderate growth during 2015-2020. Saudi Arabia represents one of the richest Arab countries and the fastest growing economies in the world. It also has the soundness of the banking and ?nancial system on account of the increasing foreign direct investments (FDI). Consequently, there is a rise in the demand for luxury goods, such as watches, fragrances, and leather products. This can also be accredited to the uniqueness and better quality of these goods as compared to necessity goods and services.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Saudi Arabia Luxury Market Trends:
Saudi Arabia has been completely dependent on the oil and gas sector for several decades. However, the governing agencies are now undertaking several initiatives to develop economic cities, foster internal trade, and diversify their economy into non-oil sectors. Apart from this, they are also encouraging public investments in retail infrastructure projects, which represents one of the key factors strengthening the growth of the market. Besides this, there is an increase in the number of mono-brand stores of global luxury brands like Prada, Tiffany, and Mulberry in the country, which is offering a positive market outlook. Additionally, rising upscale malls are offering numerous growth opportunities to luxury brands. This, coupled with the strong influence of social media platforms, is propelling young individuals to purchase luxury goods and services. Some of the other significant factors, including rising product sales via e-commerce platforms, thriving travel and tourism sector, and increasing population, are propelling the market growth. Looking forward, IMARC Group expects the market to expand at a CAGR of 6.5% during the forecast period (2021-2026).
- Based on the category, the market has been segregated into travel and hotel, cars, personal luxury goods, food and drinks, and others. At present, the travel and hotel segment accounts for the majority of the total market share.
- On the basis of gender, the male segment dominates the market, followed by the female segment.
- Based on the distribution channel, the market has been divided into mono-brand, multi-brand, online, and other stores. Presently, mono-brand stores hold the largest market share.
- The competitive landscape of the market has been examined, along with the profiles of the leading players operating in the market.
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