Saudi Arabia Luxury Watches Retail Market Size, Consumer Segments, Brand Landscape & Forecast 2025-2030

Saudi Arabia luxury watches retail market valued at USD 1.2 billion, driven by rising disposable incomes, affluent population, and luxury consumption trends among younger buyers.

The Saudi Arabia Luxury Watches Retail Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by increasing disposable income, a growing affluent population, and a rising trend of luxury consumption among younger consumers. The market has seen a significant uptick in demand for high-end timepieces, reflecting a shift in consumer preferences towards luxury goods as status symbols.

Key cities such as Riyadh, Jeddah, and Dammam dominate the luxury watch market due to their affluent demographics and concentration of luxury retail outlets. Riyadh, as the capital, serves as a hub for luxury brands, while Jeddah's coastal location attracts affluent tourists. The presence of high-end shopping malls and luxury boutiques in these cities further enhances their market dominance.

In recent years, the Saudi government has implemented regulations to promote the luxury goods sector, including the introduction of a VAT exemption for certain luxury items. This initiative aims to stimulate consumer spending and attract international luxury brands to the Saudi market, thereby enhancing the overall growth of the luxury watches retail sector.

Saudi Arabia Luxury Watches Retail Market Segmentation

By Type:

The luxury watches market can be segmented into various types, including Mechanical Watches, Quartz Watches, Smart Watches, Luxury Fashion Watches, Vintage Watches, Limited Edition Watches, and Others. Among these, Mechanical Watches and Quartz Watches are the most popular due to their craftsmanship and reliability, respectively. The demand for Smart Watches is also increasing as technology integrates with luxury, appealing to tech-savvy consumers.

By End-User:

The luxury watches market is segmented by end-user into Men, Women, and Unisex categories. Men’s watches dominate the market due to traditional preferences for luxury timepieces as status symbols. However, the women’s segment is growing rapidly, driven by increasing brand awareness and the introduction of stylish designs tailored for women. Unisex watches are also gaining traction as consumers seek versatile options.

Saudi Arabia Luxury Watches Retail Market Competitive Landscape

The Saudi Arabia Luxury Watches Retail Market is characterized by a dynamic mix of regional and international players. Leading participants such as Rolex SA, Patek Philippe SA, Audemars Piguet, Omega SA, TAG Heuer, Hublot, Cartier, Montblanc, IWC Schaffhausen, Jaeger-LeCoultre, Chopard, Breguet, Longines, Baume & Mercier, Seiko Holdings Corporation contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Luxury Watches Retail Market Industry Analysis

Growth Drivers

Increasing Disposable Income:

The average disposable income in Saudi Arabia is projected to reach approximately SAR 85,000 (USD 22,666) per capita in future, reflecting a significant increase from SAR 80,000 (USD 21,333) in the previous year. This rise in disposable income enables consumers to allocate more funds towards luxury items, including high-end watches. As the economy diversifies and employment opportunities expand, the purchasing power of the middle and upper classes is expected to grow, further driving demand for luxury watches.

Rising Demand for Luxury Goods:

The luxury goods market in Saudi Arabia is anticipated to grow to SAR 22 billion (USD 5.86 billion) in future, with luxury watches being a significant segment. This growth is fueled by a cultural shift towards luxury consumption, particularly among younger consumers who prioritize status and brand prestige. The increasing number of affluent individuals, estimated at over 220,000 in future, is expected to further enhance the demand for luxury watches, making it a lucrative market segment.

Growth of E-commerce Platforms:

E-commerce sales in Saudi Arabia are projected to reach SAR 55 billion (USD 14.67 billion) in future, up from SAR 50 billion (USD 13.33 billion) in the previous year. This growth is driven by increased internet penetration, which is expected to exceed 97% in future, and a growing preference for online shopping among consumers. Luxury watch retailers are increasingly leveraging e-commerce platforms to reach a broader audience, enhancing accessibility and convenience for consumers seeking high-end timepieces.

Market Challenges

Economic Fluctuations:

Saudi Arabia's economy is heavily reliant on oil, which can lead to volatility in economic conditions. The World Bank forecasts a GDP growth rate of 2.8% in future, down from 3.5% in the previous year, primarily due to fluctuating oil prices. Such economic instability can impact consumer spending on luxury items, including watches, as consumers may prioritize essential goods during economic downturns, posing a challenge for luxury watch retailers.

High Import Duties and Taxes:

The Saudi government imposes import duties of up to 20% on luxury goods, including watches, which can significantly increase retail prices. In future, the total tax revenue from luxury goods is expected to reach SAR 5.5 billion (USD 1.47 billion). These high costs can deter potential buyers and limit market growth, as consumers may seek alternatives or delay purchases due to inflated prices, impacting overall sales in the luxury watch segment.

Saudi Arabia Luxury Watches Retail Market Future Outlook

The Saudi Arabia luxury watches retail market is poised for significant growth, driven by increasing disposable incomes and a cultural shift towards luxury consumption. As e-commerce continues to expand, retailers will have greater opportunities to reach affluent consumers. However, challenges such as economic fluctuations and high import duties may temper growth. The market is expected to adapt by enhancing online shopping experiences and focusing on brand heritage, ensuring resilience in a competitive landscape while catering to evolving consumer preferences.

Market Opportunities

Growing Tourism Sector:

With Saudi Arabia aiming to attract 120 million visitors in future, the luxury watch market can capitalize on the influx of tourists. This growth in tourism is expected to boost sales, as visitors often seek luxury items as souvenirs, enhancing the market's potential for expansion in retail outlets and online platforms.

Increasing Online Shopping Trends:

The shift towards online shopping is creating new opportunities for luxury watch retailers. With e-commerce sales projected to grow by 12% annually, brands can leverage digital marketing strategies to engage consumers effectively. This trend allows retailers to reach a wider audience, particularly younger consumers who prefer online shopping for luxury goods.