Luxury spending in Saudi Arabia is on the rise, paving the way for new investment opportunities
Despite a global slow-down in luxury spending, demand for luxury goods in emerging markets like Saudi Arabia, Brazil and South Africa is showing remarkable resilience.
This was a crucial topic of conversation during the latestGlobal Summit at Château du Chantilly. During a panel focused on emerging markets, we heard from event partner Diriyah Company about the vast resources going into commercial real estate and infrastructure development in Saudi Arabia, where robust local demand is also proving an attractive opportunity for international investors.
Once a historic town in Saudi Arabia, Diriyah is now the epicentre of significant regional development, with an unprecedented level of investment aimed at creating the premier retail, lifestyle and residential destination of the Middle East. During the panel, guests heard from Nermeen Nosseir, Chief Retail Leasing Officer at Diriyah Company, on the plans for the destination.
“Diriyah is such a big project. Just to give you a feel of the scale of the project, it's almost the size of Geneva. So it's 14 square kilometers, Geneva is 15, so it's really a city,” she said.
However, Nosseir pointed out that this isn’t a development that has sprung out of nowhere: “It's not a new city because it existed 300 years ago and it used to be the first capital before it moved to Riyadh. So this is where the culture and historical elements are embedded in everything that we do.
Additionally, everything is inspired by this UNESCO Heritage Site that some of you might have visited at At-Turaif. ” In Saudi Arabia, Nosseir said the key drivers of retail and luxury consumption are born out of localised behaviours, explaining, “We have just had Eid al-Fitr, which is one of the strongest seasons in retail in the Middle East, and season to season actually its sales grew by double digits.
The primary reason is because Saudis stayed in the country, and they were loyal to their country, spending on key categories like new clothing, as is the custom during this celebration. ” She stressed the importance of embedding the cultural heritage of the region into the ambitious aims of the development to ensure cultural assets are safeguarded.
“We're also building and delivering cultural assets to showcase the history and heritage and art of Saudi Arabia. All of this will be complemented by diversified offerings of luxury retail and lifestyle propositions. ”Importantly, Nosseir highlighted the unique needs of native Saudis, explaining that they possess a strong sense of pride in their Arab identity: “They're very proud of their country, so they like the green color because it's the color of their flag”.
However, she notes that their standards are uncompromising, especially when it comes to personalization - a key strategy for elevating luxury products.
“They want extravagance. They want something that is unique and something that is personalized. So extravagance means pieces not made with the regular leather, so not from an off-the-shelf collection. They want, for example, crocodile leather.
…They like to buy the limited edition ranges. They like engraving, embroidering. This is something that will connect and resonate. ” The first luxury brand that has taken residence in Diriyah is Dolce & Gabbana, where a 1,500sqm store features the brand’s first D&G cafe outside of Milan.
The store has tailored the assortment to local cultural tastes, including a unique range of dresses designed for Saudi styles. Nosseir added that a dedicated retail precinct, Raya Square, is set to be home for all major luxury maisons that establish a presence in Diriyah, with many occupying a space double the size of conventional flagship stores.
The elite mix of brands extends to hospitality too, demonstrating not only the levels of luxury the destination aims to attract, but also the standards shoppers have come to expect: “When you visit a Saudi for lunch or dinner, and they like to host big gatherings, they usually welcome you with dates and coffee. And then they will take you to a living room, and they will serve you tea and treats, and then they will take you to the dining room where you will have multiple courses.
It's like a Michelin star experience. This is their hospitality, and this is what we are trying to reflect in Diriyah... So each destination will have a mix of hotels. Diriyah Square is where we have boutique hotels like Baccarat, Four Seasons and Armani, and today we talked about how important luxury wellness is now, so we have this type of resort, like Aman and Six Senses.
All of these are integrated with culture and lifestyle because Saudis expect hospitality in every touch point. ” Crucially, Nosseir says that there is significant headroom for growth in Saudi Arabia, but the brands and businesses that will do well are the ones who take the time to understand the power of culture and the distinct needs of the local consumer.
Please follow us on Google to support usUnited States Latest News, United States Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
UK Caravan Holidays Surge as Staycations Replace Overseas Luxury TripsThe UK caravan holiday industry is booming, driven by cost-conscious Brits opting for domestic staycations. From celebrity endorsements to personal stories of empowerment, caravan parks offer an affordable and stress-free escape. A single mother shares how local trips built her confidence and provided quality time with her son without the financial strain of foreign travel.
Read more »
ZEGNA Names Ousmane Dembélé as Its New Global Brand AmbassadorAs sport and luxury become increasingly intertwined, this partnership arrives at exactly the right moment.
Read more »
Luxury Massage Chairs in Migrant Hotel Raise Questions Over Standard of LivingThe footage from inside a four-star migrant hotel in Solihull, England, has sparked concerns over the standard of living for asylum seekers. The hotel, which is funded by taxpayers, features luxurious amenities including massage chairs, a well-stocked gym, and flat-screen TVs. The footage was captured by a vlogger who visited the hotel and spoke with some of the male guests. The hotel's website describes it as a 'welcoming atmosphere' and features photos of the gym and rooms. However, a hotel source has claimed that the massage chairs have not been operational since migrants have lived at the building. The Government has faced scrutiny over its use of hotels for asylum seekers, with concerns over costs, security, and the use of high-standard facilities. The projected cost of accommodating migrants in hotels over the next decade is estimated to be £15.3 billion.
Read more »
Saudi Arabia's Futuristic Neom Project Hits SnagsThe Crown Prince of Saudi Arabia's ambitious Neom project, a carbon-neutral city in the desert, faces financial struggles and cost-cutting measures.
Read more »