Saudi Arabia Clothing Market

The Saudi apparel retail industry is one of the high-growth markets in the Arab region especially in the women and children segments.  

The apparel business grew rapidly over the last few years as people became more fashion-oriented. The growth in the sector is attributed to the high young population and increasing purchasing power in the backdrop of the recent economic boom.    

Clothing style in Saudi Arabia

Considering the clothing style in Saudi Arabia, men mostly wear the traditional white thobes along with the red shemaghs. Women on the other hand, wear the black abayas and tarhas for everyday use. Despite the fact that all women wear the traditional abaya on top of their clothes, underneath the abaya, Western dress is most common. Western dress is adopted more by the younger Saudi generation outside of school. Non-Saudi adults usually wear the Western dress code.

The Saudi Arabian apparel market is heavily reliant on imports especially when it comes to fabric, cloth, accessories and ready-made Western style clothes. These imports come from all over the world depending on price range and quality. There is a noticeable distinction and a clear line between the high-end and low-end types of clothes. European and American clothes are usually classified as high-end and targeted towards the upper social class, whereas, garments imported from the Far East especially from China offers much lower prices and quality and is geared towards the lower social class, which represents the largest section of the pie. Saudi manufacturers, on the other hand, mainly supply military uniforms and traditional abayas.

In Saudi Arabia, Riyadh is currently the largest market for retail apparel in Saudi Arabia accounting for around 40% of total apparel sales, and is followed by Jeddah (around 30%) and Dammam/Khobar (around 20%).

The growing presence of international branded apparel in these big cities has contributed to growth in branded apparel sector. Jeddah is larger on the mid-tier segment due to the large number of pilgrims it receives during the Hajj and Umrah seasons, while Riyadh is more important for the top end of the market due to the presence of a larger base of wealthier consumers.

Dammam/Khobar comes in the third place, although it does gain some seasonal importance during Hajj and Umrah seasons when pilgrims coming from Bahrain and Kuwait stop over for shopping on their way back form the pilgrimage.

Market segments

The major market segments in retail apparel include womenswear, footwear, childrenswear and menswear.

Some segments of the market like womenswear are more developed whereas other segments are yet to catch up. Menswear represents a small segment of the ready-made clothing sector in comparison to womenswear and childrenswear.  

Womenswear is the largest retail apparel segment in the Saudi market. Womenswear accounts for around half of the total branded retail sales, and is considered the most mature segment of fashion retail. In the Womenswear, casual and evening dress accounts for the major share.  

Sales of childrenswear are high in Saudi Arabia due to the young population and the high birth rate. Childrenswear account for around 15% to 20% of total sales. The influence of global media on the young population (representing around half of the total population in Saudi Arabia) is also a driving factor. This segment is becoming more fashion-oriented and brand-conscious. In the childrenswear segment, babywear, newborn, and pre-natal clothing are all relatively under-penetrated.  

Menswear is a minor segment in the Saudi fashion retail market accounting for less than 10% of total apparel sales. Men still prefer to wear the national traditional clothing at home, at work, and in public. With the majority of the Saudi population at a young age, a shift in consumer tastes may be the catalyst for the future growth in this segment.

Economic growth an important driver of retail sector  

The oil boom led to the increase in government revenue and expenditure, which in turn boosted the economy. The impact of a healthy economy on clothing spending is notably positive. With higher levels of disposable income, and consumer confidence, Saudi consumers are spending more money, particularly on non-necessities such as mass market branded clothing.

Shopping malls a growth enabler  

The construction boom of residential, commercial, and leisure projects, which has taken place all over the kingdom in the last few years, has led to the availability of large retail space. Openings of numerous shopping malls and the ease and convenience this has provided shoppers with has contributed to growth.  

Back to Index of August 2008