Retail fashion sales in Saudi Arabia are set to surge by 48 per cent and reach $32 billion by 2025, according to the report The State of Fashion in the Kingdom of Saudi Arabia by the Saudi Fashion Commission.
This represents an annual growth rate of 13 per cent, with luxury retail posting a 19 per cent growth.
CEO of the Fashion Commission, Burak Cakmak, said: “The ‘State of Fashion in the Kingdom of Saudi Arabia’ report tangibly demonstrates what we have long known to be true: the scale of the opportunity that now exists for Saudi Arabia’s emerging domestic fashion industry can hardly be overstated.”
The trend is said to be fuelled by the country’s economic expansion and growing population, with apparel, accessories, footwear and luxury goods poised for significant gains.
Saudi Arabia’s fashion industry holds the largest projected growth rates of any other large, high-income market, the report noted.
“Saudi Arabia’s fashion industry is well-positioned to succeed. We are building the foundations for a robust, internationally networked value chain. Our vision is to develop a circular and sustainable industry, with a robust regulatory system, which allows local brands to share their identity with the rest of the world and presents opportunities for global brands and entrepreneurs,” said Mr Cakmak.
The fashion report provides a detailed overview of the industry’s size, growth and key trends, alongside an analysis of the competitive landscape, consumer preferences, emerging designers and sustainable practices within the sector.
Founder and CEO of The Webster, Laure Heriard Dubreuil, said: “Over recent years, we have witnessed the extraordinary transformation of Saudi Arabia’s role in fashion. The transition from a predominantly domestic-focused market to one that is now participating on the global stage demonstrates a clear intention to invest in the industry.
“The report and its manifestation in a unique design is but one example of what we can expect from Saudi’s burgeoning fashion scene, as the Fashion Commission continues to drive progress.”
The report demonstrates how the transformative nature of Saudi’s cultural development as a key pillar of the Saudi Vision 2030 led to an upsurge in sportswear and general athleisure apparel.
As a result of the government initiatives, sports apparel has become a fast-growing product category in Saudi with $1.4 billion in sales in 2022, which is bound to grow by 21 per cent by 2027.
In 2022, Adidas Group, Nike and Puma goods accounted for more than 50 per cent of total sales in Saudi.
