RIYADH: Saudi Arabia is experiencing a swift metamorphosis in its fashion landscape, propelled by economic diversification and a youthful, tech-savvy populace.
Aiming to become a key player in the nation's non-oil economy under Vision 2030, the Kingdom's fashion market is projected to grow significantly. By 2024, it is anticipated to generate $4.37 billion in revenue, with a compound annual growth rate of 11.62 percent from 2024 to 2029, as per Statista.
This growth will culminate in a market volume of $7.57 billion over the next five years, reflecting the escalating demand for fashion products, driven by a burgeoning population, higher disposable incomes, and the government's strategic emphasis on non-oil sectors.
One of the most vibrant segments of the fashion industry in Saudi Arabia is e-commerce. The online fashion sector is expected to reach $2.5 billion by 2024, accounting for 17.8 percent of the country’s total online retail market. With a projected CAGR of 4.4 percent from 2024 to 2028, this segment is set to expand to nearly $3 billion by 2028, mirroring global trends where more consumers are opting for online platforms for their fashion needs.
Saudi Arabia’s domestic fashion market has traditionally relied on imports, with international brands dominating the retail scene. However, there has been a noticeable shift towards local production and the emergence of Saudi brands. The Saudi government is keen to harness the industry’s potential to reduce reliance on foreign imports and support local talent.
Vision 2030 identifies the fashion sector as a significant contributor to non-oil GDP, with the Saudi Fashion Commission leading initiatives to develop a comprehensive fashion value chain. These efforts include fostering local talent, supporting SMEs, and creating a robust ecosystem for local designers.
The Saudi government has recognized fashion as a vital sector for cultural and economic growth. The Fashion Commission aims to build a thriving local fashion ecosystem by reducing reliance on imports and promoting Saudi designers globally.
As Saudi Arabia’s fashion industry expands, it presents opportunities to contribute to other sectors of the economy, such as luxury tourism and entertainment. The fashion industry is well-positioned to support broader economic goals, including reducing dependence on oil and fostering innovation.
Saudi Arabia’s fashion market is set for rapid expansion, driven by government initiatives and a growing consumer base. With a focus on local talent development, sustainability, and international expansion, the Kingdom is on track to build a fashion industry that supports its economic goals and celebrates its cultural heritage.
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