During the first quarter of 2025, Saudi Arabia’s gold jewelry market has shown incredible strength as demand rose by more than 30% despite an overall global trend which was declining due to record-breaking gold prices. This stands in direct contrast to other neighboring markets such as the UAE, where jewelry demand fell by 10% year-over-year, and the Middle East overall, which declined by 4%.
There are a number of reasons behind this strong demand in the Kingdom. Cultural practices are an important factor; gold jewellery is deeply rooted in Saudi traditions, particularly during weddings and important life occasions. Gold is also seen not only as an adornment but also as a safe investment, providing both beauty and financial returns.
Initiatives by the Saudi government, including the launch of the “Made in KSA” scheme and the setting up of the Saudi Gem and Jewelry Authority, have further strengthened the industry. These initiatives try to enhance domestic craftsmanship and lessen dependency on imports, creating a strong domestic market.
Looking forward, the Saudi gold and diamond jewelry market is expected to expand at a compound annual growth rate (CAGR) of 13.92% over the forecast period. This positive forecast reflects the Kingdom’s distinctive role in the global gold market, where cultural appeal and strategic efforts fuel continued demand, even during times of global economic volatility.
