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Saudi Arabia’s luxury market reached a value of $13.5 billion in 2017. Looking forward, the market value is expected to grow to $20.8 billion by 2023, exhibiting a CAGR of 7.5 percent during 2017-2023, according to a report by ResearchAndMarkets.com.
“With its huge oil wealth, Saudi Arabia represents a nation having one of the highest concentrations of super rich households across the globe. Driven by rising income levels, the country's luxury market has been exhibiting a continuous growth,” noted the report.
Noting that more than half of the total population in the country is below 25 years of age, the report added, “It is the country’s young population that represents the biggest catalyst of the luxury market.”
“With this generation of the population being brought up during has the country’s economic rise, they consider luxury not given but as a gift,” it noted.
Moreover, it added, infrastructure development, strong growth of the e-commerce industry, increasing internet penetration, and growing travel and tourism sector in Saudi Arabia are further expected to bolster the luxury market in the country.
Based on the category, the market has been segmented into travel and hotels, cars, personal luxury goods, food and drinks, and others. Currently, travel and hotels dominate this market followed by cars, personal luxury goods, and, food and drinks, the report added.
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