Key Insights

Saudi Arabia is the world’s 18th largest economy with an evaluated GDP per capita of US$27,941 (SAR 104,778) in 2023, making it one of the wealthiest nations in the world.

The economy is driven by the oil sector which accounts for 80% of all export earnings and 43% of the nation’s GDP. As a result of Vision 2030, the economy is now undergoing significant structural transformation to reduce dependence on oil through economic diversification.

The Saudi fashion ecosystem is a broad ecosystem that accounts for 1.4% of the Kingdom’s GDP and that is responsible for approximately 230,000 jobs, or 1.8% of the total labour force. A full 60% of all ecosystem value is presently created within the retail and wholesale value chain components.

Saudi Arabia's fashion sector is vibrant and valued at $24.6bn (SAR 92.2billion) in 2021, with a predicted rise in demand for fashion goods by a CAGR of 13% from 2020 to 2025. This represents a total growth of 47.9%. Growth is anticipated across all fashion categories—apparel, accessories, footwear, and luxury goods—with luxury expected to surge by 30% from 2022 to 2025.

Import substitution presents a major opportunity. Indeed, the local production displacement of only a fraction of the US$7.3 billion (SAR 27.4 billion) imported annually within the fashion value chain, opens huge opportunities for firms in the domestic supply chain, including manufacturers, logistics and transport service providers, and specialist machinery suppliers. 

Saudi’s clothing and textiles MVA of US$2.3 billion (SAR 8.6 billion) in 2019 was substantially larger than any other GCC economy, and nearly a full US$1 billion (SAR 3.75 billion) higher than the next largest GCC producer, the United Arab Emirates (UAE).

Saudi fashion consumers proved also resilient amid Covid-19, where private consumption only decreased 8.1% during the height of the Covid-19 pandemic in 2020 relative to 12.5% (UAE), 13.2% (UK) and 8.1% (France).