Saudi Arabia Gears up to Become a Hub of Global Luxury Retail

The Kingdom of Saudi Arabia (KSA) is emerging as a global hub for luxury retail development, thanks to the government's remarkable efforts through the Vision 2030 campaign. Their investments towards infrastructure, digitization, technological advancements, and large-scale operations have broken down barriers for the global luxury market to thrive in KSA.

With an expected population of 203,000 millionaires by 2030, as projected by Euromonitor International, the Saudi Arabian economy is diversifying beyond its dependence on oil. Moreover, it is also a youth-driven market, with the majority of the population being Gen Z. As per Arab News, "Saudi Arabia stands out as a youthful market overall, where the Gen Z population stood at 8 million in 2021, whilst almost half of the total population is below 29 years old." The changing demographics with increasing purchasing power and tourism have given rise to several opportunities for global brands. The country has witnessed a surge in spending on luxury products, with renowned international brands such as Gucci, Louis Vuitton, Chanel, and others opening their flagship stores.

In addition to the investment in tech and infrastructure, KSA has taken the luxury experience a step ahead by creating major attractions across multiple megacities, such as Jeddah Park in Makkah Province and Riyadh Boulevard in Riyadh Province, as well as the upcoming NEOM city in Tabuk Province. This is starkly different from global precedents where countries usually have a single city as the hub of fashion and luxury - like Milan in Italy or Paris in France.

With this economic shift, the country has opened several opportunities for different players in the market. As global brands enter the KSA markets, the next step for luxury retail companies is to blend the global brand expressions with the cultural subtleties of this vast country. The focus is to build a thriving space that makes room for local nuances of luxury alongside international sensibilities.

Elevating brand spaces while maintaining cultural relevance is essential to luxury retail development in the region. At Abra, we share the government's Vision 2030 and are committed to contributing to it by transforming spaces into luxury experiences for the discerning Saudi shopper. With established experience in catering to the complexities of this region, we are well-positioned to deliver efficiently in this thriving retail market.

In 2022, Saudi Arabia's luxury market was valued at $8.3 billion, with an anticipated CAGR (Compound Annual Growth Rate) of 11.6% from 2023 to 2028, proving it to be a growing fit for luxury goods. To meet this future requirement, we have expanded and opened our doors at the heart of Saudi Arabia - Riyadh, in addition to our Dubai location. Our production facilities - with specialized processing of materials used in luxury retail - are purpose-built with the region's growing demands in mind. With strong local connections, our team of skilled craftsmen focuses on building an immersive experience for elite shoppers whilst paying heed to local nuances.

We are proud to be a part of this exciting vision and help build a foundation for the future of luxury.