Saudi Arabia is cutting its cloth to become the next kingdom of fashion

Special Saudi Arabia is cutting its cloth to become the next kingdom of fashion
Under the Fashion Commission, which was one of 11 such bodies established in 2020 by the Ministry of Culture, a plethora of initiatives to further grow the sector both publicly and privately are being implemented. (Saudi Style Council photo)
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Updated 17 September 2023
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Saudi Arabia is cutting its cloth to become the next kingdom of fashion

Saudi Arabia is cutting its cloth to become the next kingdom of fashion
  • Saudi Arabia’s market for fashion is on the rise, thanks to both public and private players

RIYADH: Until recently, the Saudi capital of Riyadh was hardly ever looked upon as a hotspot on the global fashion circuit. New York, Milan and Paris — these are the mainstays for fashion weeks, the cities where established and aspiring designers, buyers, and journalists have long gathered.

But times are changing, and Gulf countries are quickly becoming new hubs for the industry, particularly Saudi Arabia, where retail demand for fashion products has been forecast to increase by 48 percent to $32 billion in 2025, with the luxury field set to enjoy a 19 percent growth.

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Times are changing, and Gulf countries are quickly becoming new hubs for the industry, particularly Saudi Arabia, where retail demand for fashion products has been forecast to increase by 48 percent to $32 billion in 2025, with the luxury field set to enjoy a 19 percent growth.

With the first ever Riyadh Fashion Week underway from Oct. 20 to 23, Saudi designers will come into the spotlight on the catwalk in the capital of their own country. It is one of several of the Fashion Commission’s recent initiatives, following the launch of the ‘Saudi 100 Brands’ exhibition during Paris Fashion Week in June.
“Fashion retail has always been an attractive sector, specifically for women in Saudi,” Marriam Mossalli, a Saudi lifestyle editor, journalist and founder of communications agency Niche Arabia, told Arab News. “From sourcing fabric to working with local tailors; to selling within their immediate community; the profession has fit comfortably within our local ecosystem.”

She added: “Today, however, the appeal is global. With social media and e-commerce, the potential for many designers has grown exponentially as it’s not limited to their local market.”
The attention being paid to the industry signals the government’s belief in the sector’s potential for economic growth.
This shift has not happened by chance. The fashion industry has been identified as a key avenue for economic diversification for Saudi Arabia and is one of the non-hydrocarbon sectors rapidly on the rise.
Under the Fashion Commission, which was one of 11 such bodies established in 2020 by the Ministry of Culture, a plethora of initiatives to further grow the sector both publicly and privately are being implemented.
The commission’s March 2023 report “The State of Fashion in the Kingdom of Saudi Arabia 2023” provides an analysis of the Kingdom’s fashion value chain.
It revealed Saudi Arabia’s plan to reduce reliance on overseas imports and put the country on the map by using homegrown talent. It also highlights the sector’s potential for growth.
In the report, Saudi Fashion Commission CEO Burak Cakmak said: “We are building the foundations for the future of fashion right now, here in Saudi Arabia.”
With retail demand for fashion products projected to increase by 48 percent to $32 billion by 2025, the Saudi fashion industry is positioned for significant expansion.
In 2021, Saudi Arabia’s fashion industry spent $7.3 billion on imported goods, showcasing the potential economic impact of fostering domestic capabilwities.

The report showcases the sector’s rapid development, its strategic alignment with the nation’s Vision 2030, and how the Kingdom’s youth are putting the country on the global fashion stage through new designs and product launches.
It states how the fashion ecosystem is estimated to contribute to 1.8 percent of the total Saudi workforce, employing 230 000 people. The industry has a 52 percent female participation in the Saudi fashion workforce and 66 percent Saudization within core fashion jobs. This workforce is made up of 90,000 core fashion occupations and 140,000 related roles.
Moreover, domestic retail sales in the Kingdom are forecasted to reach $32 billion in 2025, a 30 percent growth from 2021’s total of $24 billion. Luxury fashion is a significant driver of growth, with the market growing by 19 percent in 2021 due to repatriation of spending given travel restrictions, increased female empowerment and the continued rise of e-commerce.
The market for fashion in the Kingdom is also growing due to external players and their eagerness and readiness to do business in Saudi Arabia.
These include the major luxury and fashion retail powerhouse Dubai-based Chalhoub Group, which has increasingly been doing business in the Kingdom.
Jasmina Banda, chief strategy officer at Chalhoub Group, says the business has been operating in the Kingdom for over 30 years, and currently operates over 250 stores spread across the Kingdom.
It also has over 4,000 team members, six warehouses, and is currently building a state-of-the-art fulfillment facility in Riyadh. It has dedicated offices across the Kingdom, including retail academies.
“For Chalhoub, the Kingdom remains our second-largest market,” Banda told Arab News. “In the luxury space, Saudi Arabia is overall the second-largest market, even though that varies by category.
“For example, in prestige beauty, Saudi is a strong number two, competing with the UAE, while in high-end fashion it comes in at No. 4, after the UAE, Kuwait, and Qatar, as it is a category extensively bought abroad.”
She added: “Over the last few years the Saudi fashion market has seen a strong growth, especially during the COVID-19 years when the borders were closed.
“Since reopening, we continue seeing increased offshoring of luxury spend abroad and we expect major transformations in our retail categories to happen in the coming years, as new shopping malls open — currently there are more than five luxury destinations in different stages of construction in the Kingdom.”

Saudi women have long been known as big buyers of luxury fashion, Banda said, adding that people in the Kingdom are known for following trends on social media and being well-traveled.
“That is further shifting with the socio-demographic changes in Saudi Arabia, stemming from female empowerment and increasing workforce participation, as well as changes in the habits driven by entertainment options – cinemas, restaurants, concerts, etc.,” she said.
Banda also explained how when it came to marketing to Saudi consumers, buying and merchandising are tailored to the consumer preferences in terms of silhouette, color palette and sizing.
“Especially important seasons, such as Ramadan, are addressed through dedicated capsule collections, and specific marketing campaigns and activations. It is important to be bring to the customer global brands, in a tailored ‘glocal’ way,” she said.
All of Chalhoub’s largest luxury fashion brands are already present in Saudi Arabia.
Banda notes how in the luxury sector, Saudi Arabia represents 9 percent of the global market, due to the offshoring of spend. Saudis are often the top nationality shopping in Dubai, and increasingly in Qatar. In prestige beauty, however, Saudi Arabia represents one third of the Gulf Cooperation Council market.
“On the other hand, for some of the leading watches and jewelry brands, Saudi Arabia is the No. 1 market in the region by size. Maturity really varies by category,” she said, adding: “However, Saudi consumers are also frequent clients of top luxury brands in Europe, previously in the UK and France, and now predominantly in France — since the UK stopped tax free.”
Saudi spending on fashion will likely grow “exponentially,” she emphasizes, “once the country fully delivers on its tourism ambitions.”
The Fashion Commission’s report states how major opportunities for economic growth now lie within the sector’s nascent domestic fashion industry.
Rajaa Moumena, who sits on the board of the fashion association that works directly with the commission, believes the local industry is still in the early stage of development.

She said: “It is currently at the phase of awareness and setting up the appropriate legislation to create an enabling environment for entrepreneurs to start their businesses.
“This involves addressing various aspects such as licensing, permits, and regulations that govern the industry.”
One of the primary focuses, stresses Moumena, of Vision 2030 is to promote local production and reduce reliance on imports. This includes the production of all types of clothing, ranging from ready-to-wear garments to high-end haute couture. By encouraging local production, Saudi Arabia aims to create job opportunities, boost economic growth, and retain revenue within the country.
She emphasized that education is key for the domestic sector to grow.
“As the industry evolves and adopts new concepts, it is essential for educational institutions to keep pace with these changes. This means updating curricula, offering specialized courses, and providing students with practical skills required for the fashion industry. This will help opening doors to many jobs where skillful people are needed in the industry,” said Moumena.
By encouraging the Saudi youth to be creative and business savvy, Riyadh may soon be a permanent fixture on the global fashion calendar.


Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal
Updated 08 December 2023
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Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal

RIYADH: Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin stressed in their meeting in Riyadh the need for OPEC+ members to commit to the group’s agreement, Saudi Press Agency said on Thursday, citing a joint statement.
They welcomed the close cooperation between their nations and the successful efforts of OPEC+, of which both are members, to provide stability in global oil markets.
They said it is important that this cooperation continues and stressed the need for all member states to adhere to OPEC+ agreements in a way that serves the interests of producers and consumers and supports the growth of the global economy.
OPEC+ is a group that constitutes the Organization of the Petroleum Exporting Countries and Russia and other allies.
Regarding Sudan, the two leaders stressed the importance of building on the Jeddah Declaration, which was signed on May 11 with the aim of protecting civilians during the conflict in the North African country.
On Iran, Putin welcomed the resumption of diplomatic relations between Riyadh and Tehran and expressed hope that this would lead to enhanced stability and security in the region.
Both sides also stressed their full support for regional and international efforts to reach a comprehensive political solution to the crisis in Yemen.
The two leaders said they were keen to enhance mutual and joint investments in their countries.
They welcomed a 46 percent increase in the volume of bilateral trade in 2022, compared with 2021, and affirmed their intentions to continue to work together to enhance and diversify trade relations.
Turning to the crisis in Ukraine, the Russian side praised the humanitarian and political efforts undertaken by Saudi Arabia.


Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject

Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject
Updated 07 December 2023
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Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject

Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject
  • He says the city aims to be the foremost global destination for entertainment, sports and culture, and to boost the Kingdom’s economic growth, international standing and strategic position
  • Qiddiya’s branding adopts ‘play’ as its main concept, based on research showing this to be vital for cognitive development, emotional expression, social skills, creativity and health

RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman on Thursday revealed the urban plan and global branding for Qiddiya City, a massive entertainment project under construction on the outskirts of Riyadh.

The crown prince, who chairs the board of directors of the Qiddiya Investment Company, said the city aims to quickly establish itself as the foremost global destination for entertainment, sports and culture, which will benefit the Kingdom by helping to boost its economic growth, international standing and strategic position, the Saudi Press Agency reported.

It is also designed to improve quality of life, the prince added, and to position Riyadh as one of the top 10 economies in the world.

The investment in Qiddiya is a cornerstone of Saudi Vision 2030, he said, which aims to develop and diversify the Kingdom’s economy, reducing the country’s reliance on oil revenues and creating thousands of job opportunities for Saudi youth.

Qiddiya, which is one of the major projects overseen by the Public Investment Fund, is envisioned as an essential source of support for the Kingdom’s ambitious tourism and economic goals, in addition to improving the quality of life for residents and visitors. It is expected to help attract local, regional and international investors, which will in turn provide support to Riyadh.

Work on the Qiddiya project, in the form of about SR10 billion ($2.7 billion) invested in construction projects, began in 2019.

It was revealed that the branding for Qiddiya will adopt as its main motif the concept of “play,” based on decades of research showing this to be vital for cognitive development, emotional expression, social skills, creativity and physical health.

Studies have also shown the positive effects of recreational activities on society, including their ability to help overcome differences and bridge divisions between individuals, and enhance empathy and social cohesion.

Qiddiya City, described as a one-of-a-kind destination that promises to provide endless fun and excitement for residents and visitors through unrivaled entertainment, sports events and activities, culture and exceptional urban living, will eventually include 600,000 residents and 60,000 buildings in an area covering 360 square kilometers.

It is expected to create more than 325,000 jobs, generate a nominal gross domestic product of SR135 billion a year, and attract 48 million visitors annually.

Located about 40 minutes from the center of Riyadh, overlooking the stunning scenery of the Tuwaiq mountains, Qiddiya City’s attractions will include a gaming and esports district, a motorsports racetrack, golf courses, a massive water park, and the Six Flags Qiddiya theme park. It will also be home to a sports stadium that includes the world’s largest Olympic museum. Its first facilities are expected to open within two years.


Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 
Updated 07 December 2023
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Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

RIYADH: Saudi Arabia’s Tadawul All Share Index experienced a slight rise on Thursday, gaining 51.33 points, or 0.46 percent, to close at 11,225.35.   

The benchmark index saw a total trading turnover of SR6.1 billion ($1.62 billion), with 107 listed stocks advancing and 107 retreating.  

Moreover, the parallel market Nomu witnessed an increase of 399.17 points, or 1.70 percent, to end the day at 23,949. The market had 24 listed stocks advancing and 31 retreating.  

The MSCI Tadawul Index also saw an increase, inching up by 4.56 points, or 0.32 percent, to close at 1,439.56.  

TASI’s top performer was Development Works Food Co., which saw its share price surge by 9.92 percent to SR135.20.   

Other significant gainers included Al-Omran Industrial Trading Co. and National Agricultural Development Co., with their share prices rising by 7.99 percent and 5.66 percent to SR37.85 and SR28, respectively. Leejam Sports Co. and ACWA Power Co. also reported strong performances.  

Conversely, Al-Baha Investment and Development Co. experienced a decline, with its share price dropping by 6.67 percent to SR0.14.   

Taiba Investments Co. and Savola Group also faced downturns, with their share prices decreasing by 5.35 percent and 3.38 percent to SR25.65 and SR38.55, respectively. Arabian Pipes Co. and Saudi Reinsurance Co. were among the day’s worst performers.  

On the announcement front, Riyadh Cables Group Co. has completed the second phase of its share buyback program, designed to support its long-term employee stock incentive program.   

The buyback, which occurred between Oct. 31 and Nov. 30, 2023, saw the repurchase of 252,500 shares, amounting to SR18.89 million, at an average price of SR74.82 per share, as per the company’s announcement to Tadawul.  

This step is part of a 12-month plan that commenced following approval at the company’s extraordinary general meeting.

Following this phase, Riyadh Cables’ treasury now holds 282,500 shares, acquired at an average price of SR74.68 each.  

The company has indicated that this buyback process is not expected to have a significant impact on its financial results. This move aligns with Riyadh Cables’ strategy to invest in its workforce while ensuring the company’s continued financial stability and growth.  


Saudi-Vietnamese Joint Committee explores ways to boost trade

Saudi-Vietnamese Joint Committee explores ways to boost trade
Updated 07 December 2023
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Saudi-Vietnamese Joint Committee explores ways to boost trade

Saudi-Vietnamese Joint Committee explores ways to boost trade

RIYADH: Trade exchange between Saudi Arabia and Vietnam is on course to prosper following discussions in a ministerial meeting.  

The fifth Saudi-Vietnamese Joint Committee, taking place in the Asian country’s capital of Hanoi, saw the participation of the Kingdom’s Assistant Deputy Minister for Mining Enablement Abdulaziz Al-Ahmadi, Vietnam’s Deputy Minister of Industry and Trade Phan Thi Thang, as well as joint representatives from several government agencies.  

During the meeting, the two nations reviewed the trade volume between them and expressed their intent to enhance it, broadening the range of exchanged products.  

This aligns with both countries’ efforts in recent years to bolster economic and trade relations.  

During the talk, the officials also discussed implementing support initiatives to facilitate trade exchange by encouraging the exchange of trade missions and participating in the economic activities held in the two countries.

The meeting also shed light on ways to enhance relations and common interests in accordance with the economic, scientific, and technical cooperation agreement concluded in Hanoi on May 25, 2006.

Additionally, both sides discussed increasing the volume of investments in priority sectors between them and elevating partnerships in trade, exports, and investments.

As the assembly concluded, both nations pledged to continue working to develop bilateral cooperation in key areas, including foreign relations, trade, energy, and industry.

Additional sectors included investment, finance, development support, health, as well as education, training, human resources development, media, and justice.

Other areas of interest entailed culture and tourism, security and defense, science, technology and innovation, among others.

The Kingdom is a significant market for Vietnam and a vital partner in the Middle East and Africa.

The region’s exports to the Asian country during 2022 included plastic products, mineral products, and organic chemicals. They also entailed animal food and fish meat preparations.  

Meanwhile, Saudi Arabia’s imports from Vietnam included electrical appliances, equipment and their parts, and metal products. They also included copper and its products, shoes, machinery and tools.    

The Saudi-Vietnamese Joint Committee was established in 2006 to promote cooperation across various sectors for mutual development.


Central Bank of UAE’s assets rise 1.3% to $1.08tn

Central Bank of UAE’s assets rise 1.3% to $1.08tn
Updated 07 December 2023
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Central Bank of UAE’s assets rise 1.3% to $1.08tn

Central Bank of UAE’s assets rise 1.3% to $1.08tn

RIYADH: Total assets held by the Central Bank of UAE rose to $3.95 trillion dirhams ($1.08 trillion) by the end of September 2023, representing a 1.3 percent increase compared to the previous month.

According to CBUAE’s statistical monthly bulletin, this growth in assets was complemented by a 1.4 percent rise in the volume of bank credit, which went from 1.95 trillion dirhams at the end of August to 1.98 trillion dirhams at the end of September.

CBUAE revealed that the surge in bank credit in September was driven by a significant 7.3 percent surge in foreign credit and a modest 0.7 percent increase in domestic credit.

According to the central bank, the domestic credit increase was attributed to a 3.3 percent increase in the public sector, 3.8 percent in non-financial institutions, and a 0.2 percent increase in the private sector.

The report added that banking deposits hit 2.42 trillion by the end of September, representing a rise of 0.7 percent compared to August.

“The growth in total bank deposits was due to an increase in resident deposits by 1.8 percent, overshadowing the reduction in non-resident by 10.1 percent,” said CBUAE in the report.  

Additionally, CBUAE said the monetary base expanded by 0.4 percent from 595.1 billion dirhams in August to 597.3 billion dirhams by the end of September. The expansion included a 0.5 percent increase in issued currency and a significant 13.1 percent rise in the reserve account.

CBUAE added that the overall money supply indicators also witnessed growth in September. M1, which signifies the most liquid form of money, observed a rise of 2.2 percent to 795.5 billion dirhams in September compared to August, while M2, which includes M1 and also less liquid short-term time deposits, grew by 2.6 percent to 1.90 trillion dirhams during the same period.

M3, which comprises M2 and includes less liquid assets and large time deposits, grew by 1.6 percent month-on-month to 2.35 trillion in September.

Earlier this month, CBUAE and Bank Indonesia signed a memorandum of understanding aimed at expanding cooperation across various sectors.

The MoU entails the extension of the already established framework of cooperation between both central banks, which seeks to strengthen their relationship, enhance information exchange, and collaborate across various areas.