Face of Fashion in the Kingdom

“We are building the foundations for the future of fashion right now, here in Saudi Arabia” – Burak Cakmak, Chief Executive Officer, Fashion Commission.

A solid foundation has been created for the future growth of Saudi Arabia’s fashion industry, stated ‘The State of Fashion in the Kingdom of Saudi Arabia 2023’ report by the Kingdom’s Fashion Commission. Design and product development capabilities are being developed rapidly established, while local supply chain bottlenecks are steadily being resolved.

Importantly, the Kingdom is investing significantly to develop a robust fashion production-related talent pipeline through well-funded scholarship programmes to enable students to study at some of the world’s most prestigious universities. Moreover, as sustainability awareness grows, Saudi Arabia also recognises the importance of developing a fashion ecosystem that puts sustainability at its core by weaving sustainability practices into business models.

In terms of growth outlook, fashion sales in the Kingdom of Saudi Arabia are expected to surge by 48% from 2021 to 2025, at a compounded annual growth rate of 13%, the report indicated.

This growth is expected to be fuelled by the Kingdom’s economic expansion and a growing population, with apparel, accessories, footwear and luxury goods all poised for significant gains. While women’s apparel market is forecast to grow by 20% by 2027, men’s fashion market, although smaller than women’s, is expected to grow by 27% from 2022 to 2027. While the sportswear category is ripe for new opportunities across both established and emerging brands, the modest wear segment also continues to grow.

Given the boldness of Vision 2030 and its focus on growing the non-oil GDP contribution of the private sector to the Saudi economy and the greater inclusion of women in economic activity, fashion has the potential to be a major driver of the strategy.

If anything, the recently concluded Riyadh Fashion Week reflected this vision as 30 homegrown Saudi-born brands took over the runway offering a unique showcase of tradition merging with modernity.

In fact, in 2022, the Kingdom’s fashion industry contributed 1.4% of GDP, or SAR46.9 billion (approximately $12.5 billion), and employed 230,000 people – equivalent to 1.8% of Saudi Arabia’s total workforce. Importantly, the Kingdom’s fashion industry comprised 52% female employees. A total of 66% of all fashion jobs within the Kingdom were held by Saudi nationals. Of the total 230,000 fashion jobs, 90,000 were in core fashion occupations, where employment is strictly supporting the fashion industry, and 140,000 in non-core supporting/ancillary occupations existing in the fashion and other sectors.

Overall, confidence in KSA’s fashion sector is strong, as 70% of the Fashion Commission Outlook Survey respondents expect to see Saudi fashion sales grow over the next three years.

Offering a long-term view, in a statement Cakmak said, “A robust value chain is being set up in the Kingdom with all elements that are locally relevant, but also fully networked internationally. We need to develop the technical back end of the industry as the retail front-end grows. That includes everything from what material we produce here and how much of it is circular and sustainable, to what products we design, develop and even manufacture here. The vision would also include that we have a robust regulatory system in place that supports all the efforts, that will also allow us to be able to document and track all the progress being made. We play a key role in supporting the GDP of the Kingdom all the way from retail to brands and all the elements across the value chain. 2050 will see local brands sharing their journey and their identity to the rest of the world.”