Since 2021, fashion spending in Saudi Arabia has grown sharply, reflecting wider social, economic and cultural shifts. According to a report by the Saudi Fashion Commission in collaboration with Chalhoub Group, this rise is not temporary but the result of several interconnected factors.
Women entering the workforce
Women now make up about 33% percent of the workforce, which is double the share from just five years ago. This change has not only raised household income but also diversified purchasing decisions. Demand is expanding for clothing that suits professional life as well as social occasions.
Retail expansion and domestic tourism
The opening of new tourist destinations and entertainment hubs has turned shopping into a leisure experience. Stores have become part of a lifestyle ecosystem that attracts both citizens and international visitors, increasing the visibility of local and global brands.
The rise of e-commerce and flexible payments
E-commerce has been the strongest driver of growth. Companies such as Ounass and Boutiqaat invested in local warehouses to cut costs and speed up delivery. Flexible payment options like Tabby and Tamara have also widened access, especially for younger consumers. In some cases, adoption of buy-now-pay-later services in Saudi Arabia has moved faster than in parts of Europe, showing how eager local shoppers are for digital-first solutions.
Cultural and experiential marketing
From Dior’s fragrance launch in AlUla, to fashion shows in Riyadh, and the unveiling of Cartier’s Pasha at Al Faisaliah Tower, events have become powerful cultural marketing tools. These experiences increase sales and at the same time deepen consumers’ emotional connection with brands.
Where is the market heading?
Together, these factors show that higher spending on fashion in Saudi Arabia is not simply the result of greater purchasing power. It is linked to changes in lifestyle and shifting consumer priorities. With a new generation entering the workforce, women playing a stronger role in society, and Saudi brands rising alongside international names, the years ahead are likely to bring even more growth.
The key question now is whether this spending will continue to strengthen global luxury houses or whether we will see a stronger rise of Saudi fashion labels that are beginning to carve out their own space in the market.
