RIYADH: Saudi Arabia is witnessing a rapid transformation in its fashion sector, bolstered by economic diversification and a youthful, digitally savvy population.
With projections pointing to a robust growth trajectory, the Kingdom’s fashion market is set to emerge as a driver of the nation’s non-oil economy under Vision 2030.
The fashion market in Saudi Arabia is expected to generate $4.37 billion in revenue in 2024, with a compound annual growth rate of 11.62 percent from 2024 to 2029, according to Statista.
This will lead to a market volume of $7.57 billion in the next five years, underscoring the rising demand for fashion products, fueled by a growing population, increased disposable income, and the government’s strategic focus on fostering non-oil industries.
E-commerce and online presence
One of the most dynamic segments of the fashion industry in Saudi Arabia is e-commerce. The online fashion sector is forecast to hit $2.5 billion in 2024, making up 17.8 percent of the country’s total online retail market.
With a projected CAGR of 4.4 percent between 2024 and 2028, this sphere is expected to grow to nearly $3 billion by 2028. This growth aligns with global trends as more consumers turn to online platforms for their fashion needs.
EcommerceDB highlights that in August, Saudi Arabia’s monthly e-commerce revenue for fashion reached $201 million, demonstrating a consistent interest in online fashion purchases despite a slight 6.1 percent decrease from the previous month.
More notably, this market continues to expand, with the share of online retail in fashion expected to surge from 40.6 percent to 68.9 percent by 2028, reflecting the growing preference for digital shopping.
As the online market grows, local companies are already capitalizing on this trend.
Saudi e-commerce retailer Namshi.com generated $167.2 million in revenue in 2023, making it a significant player in the Kingdom’s online fashion landscape.
This growth in internet sales has allowed local and regional brands to flourish, offering customers a wide variety of apparel, accessories, and footwear at the click of a button.
A shifting retail landscape
Saudi Arabia’s domestic fashion market has long been dependent on imports, with international brands dominating the retail scene.
In 2022 the Kingdom imported $2.6 billion worth of fashion goods from China alone. However, recent years have seen a pivot towards local production and the rise of Saudi brands.
In the same year, the Kingdom’s fashion industry was valued at $24.6 billion, contributing 1.4 percent of the nation’s GDP and employing 230,000 people.
This highlights the industry’s potential, which the Saudi government is keen to harness to reduce its reliance on foreign imports and support local talent.
Vision 2030 has identified the fashion sector as a significant contributor to non-oil GDP, and the Saudi Fashion Commission is at the forefront of these efforts.
The commission has