Growing Luxury Retail in Saudi Arabia

Being a part of the luxury retail industry in the Middle East and Africa regions, we're excited about the booming market in Saudi Arabia. The country has positioned itself as a top destination for high-end shopping, with a retail market that has been growing rapidly in recent years. This is due to increasing consumer spending and a thriving economy.

The Saudi government's Vision 2030 aims to diversify the country's economy and reduce its reliance on oil, and luxury retail is an area that the government has been encouraging to invest in. This has resulted in the opening of flagship stores for major luxury brands like Gucci, Louis Vuitton, and Chanel, among others.

It has also been noticed that there is a generational change in luxury shopping among Saudi women since the amendment of the guardianship system. Heritage is an important consideration for them when it comes to high-end brands, and they prefer to make purchases in physical stores rather than online, despite the option to do so. For these women, the customer service they receive in stores is a crucial part of the overall "luxury experience."

With the increase in local consumer spending, the growing luxury retail market in Saudi Arabia is also attracting international investors who see the vast potential in the country. Global brands are partnering with local retailers to bring their products to the kingdom, and several international investors have acquired stakes in Saudi retail companies.

With a growing middle class, increasing tourism, and an expanding market, the kingdom is poised for continued growth in the luxury retail sector. Abra is excited to be part of this thriving market and we look forward to the opportunities it presents.