Inside Saudi’s luxury evolution: Gen Z, women, innovation lead

Who’s doing all the luxury shopping in Saudi Arabia? Here’s what The Future Laboratory’s latest report has to say.

Under Vision 2030, Saudi Arabia is entering a new era of innovation, enterprise, and openness — one that will turn the kingdom into a hub for luxury in the Middle East.

“I want it to be the number one luxury market in the world — to really be leading,” said Saudi Arabia’s Prince Bandar bin Saud bin Khalid Al Saud in a report. “We have what it takes. I don’t think we lack the will, and I don’t think we lack the imagination, or the ambition.”

Driving this growth is the country’s expanding number of affluent consumers, who are raising the standards for luxury brands and bespoke experiences, along with empowered women and a sizable youth population under 30.

These findings are outlined in a new report titled, “New Codes of Luxury in Saudi Arabia,” published by trend forecasting consultancy The Future Laboratory yesterday. The study delves into the Saudi consumer’s evolving preferences for luxury and the ways brands can approach the burgeoning market.

Saudi’s highly discerning ultra-rich
According to Euromonitor International, Saudi Arabia is expected to boast 203,000 millionaires by 2030. Meanwhile, the number of ultra-rich individuals with a net worth exceeding $30 million is forecast to grow by 10.4 percent in 2024, per Knight Frank.

These consumers, like their global counterparts, have the highest standards for brands. They’re well traveled, well educated, and often make their luxury purchases outside the kingdom, giving them exposure to the top luxury experiences across the globe.

“While some value is still placed on status and overt luxury, this is most definitely changing,” said Future Laboratory co-founder Chris Sanderson in a webinar held yesterday to present the report. “Gone are the days of conspicuous displays of wealth, which are now being replaced in favor of privacy, market know-how or savoir-faire, and hyper-personalization.”

“Gone are the days of conspicuous displays of wealth, which are now being replaced in favor of privacy, market know-how or savoir-faire, and hyper-personalization.
In a survey of Saudi nationals, 60 percent of those earning over $266,000 (SAR 1 million) said that personalized offerings significantly affect their decision to engage with a luxury brand or service. This embrace of personalization extends to services as well: 42 percent of this income bracket reported that they use concierge-style luxury services at least once a month.

As Georgia Fendley, founder of luxury design agency Construct, writes in the report: “At this level of luxury, we’re speaking to an audience of one. So we try to avoid ever thinking about a demographic.”