Saudi Arabia’s style market is poised for explosive development, in line with the Saudi Style Fee’s “State of the Style Sector 2024” report launched this week. The Saudi style trade, valued at $30 billion in 2023, is predicted to achieve $42 billion by 2028, with Style contributing 2.5 % to the Kingdom’s GDP.
In an interview with WWD, Burak Cakmak, chief government officer of the Saudi Style Fee, mentioned the fast-paced development of style is in sync with nation’s broader technique to turn out to be a worldwide style and tourism vacation spot. “The trade right here was greenfield so we’re seeing a hockey stick impact on development, with this sudden acceleration, which may be very thrilling,” he mentioned. “Being linked with Saudi Arabia’s Imaginative and prescient 2030 gives an enormous alternative,” mentioned Cakmak, referring to the nation’s strategic plan to diversify the economic system and scale back dependence on oil.
The report highlights a number of key elements driving this strong development. The rising participation of ladies within the workforce, which elevated from 22 % in 2018 to 34 % in 2022, is boosting buying energy and demand for numerous style merchandise. And with 60 % of the inhabitants below 30, younger Saudis have altering style preferences that mix international developments with cultural heritage.
Cakmak famous this mixture of custom and modernity is a benchmark of Saudi style. “The mixing of traditions with up to date life in Saudi brings out numerous choices by each worldwide and native manufacturers and enhancing retail experiences.”
The rise of native designers in Saudi Arabia has seen a major surge, supported by initiatives from the Style Fee just like the Saudi 100 manufacturers program, which for the final three years has given Saudi designers entry to mentorship, funding and each home and international visibility. “We’re beginning very humbly, recognizing that it’s a brand new enterprise for many of those manufacturers, however we have now a secure atmosphere the place we’re in a position to give them the steerage, the assist wanted to have the ability to ship it on the highest stage potential.”
Final 12 months noticed the launch of two marquis style weeks within the Kingdom, Riyadh Style Week, in addition to Purple Sea Style Week. Cakmak emphasised the position of those occasions in shaping the trade’s construction. “It creates a calendar and a schedule for manufacturers on the right way to function their companies and a whole ecosystem round it.”
Tourism has been vital consider propelling the expansion of the style sector, with inbound tourism projected to develop from 27 million guests in 2023 to greater than 75 million by 2030. Camak mentioned this can considerably affect retail spending. “The funding in tourism and the variety of vacationers anticipated is kind of vital,” he mentioned. The Style Fee seized the chance to launch the area’s first ever resortwear, targeted style week on the Purple Sea final Might.
“With so many lodge megaprojects opening, I feel it’s nice alternative, particularly as a result of tourism right here may be very a lot focusing on a premium luxurious viewers. There are few spots all over the world positioned this manner,” Cakmak mentioned.
The retail panorama can also be quickly evolving, which is constant to draw extra worldwide manufacturers into the nation. Greater than 20 new retail initiatives throughout the nation will remodel the procuring panorama over the following decade, including 8 million sq. meters of gross leasable space. Cakmak mentioned the Style Fee helps worldwide manufacturers exploring entry into the market with a knowledge pushed method, explaining that so as to entice investments, the fee supplies deep dive information on markets and sectors within the Kingdom.
One information level that has been a degree of satisfaction are the numbers pointing in direction of gender equality in style in Saudi Arabia, the report notes. Ladies now make up 52 % of the style workforce in Saudi Arabia, with 90,000 new jobs for girls within the final two years. This spans throughout numerous roles within the trade, from designers and entrepreneurs to retail professionals and executives.
As they stay up for 2025, Cakmak mentioned the objective is to “be sure we’re touching each ingredient of the worth chain in style.” That additionally consists of investing and increasing their a state-of-the-art product growth studio supporting native designers with superior manufacturing amenities and applied sciences. “That is one are we wish to go deeper into: textiles and manufacturing,” Cakmak mentioned.