Saudi Arabia’s diamond market has transformed in the past decade from a niche luxury segment into a shining dynamic force within the global industry.
Driven by a blend of deep-rooted cultural traditions and the kingdom’s burgeoning economic affluence, the demand for these jewellery items has surged.
This growth reflects not only the country’s rich heritage but also a broader shift toward luxury experiences, underscoring a new era of opulence in one of the world’s most affluent markets.
“The rise in the demand for diamonds, particularly within the luxury sector, is driven by growing affluence and the desire for high-end experiences,” Anne Larsen, an expert gemologist and high jewellery adviser said.
“The surge for luxury experiences and products within the luxury sector has been the biggest factor to this change, especially within the last few years.”
This trend has accelerated as more consumers seek unique items as a form of self-expression.
This surge in demand is mirrored by a shift in consumer behaviour, with young, independent women entering the market. They are increasingly opting for mid-range jewellery, focusing on quality and design rather than large, ostentatious pieces.
Saudi Arabia has made significant strides as a key exporter in the global diamond market. In 2022, the kingdom exported $47.2 million in diamonds, placing it as the 36th largest diamond exporter globally, according to a report by the Observatory of Economic Complexity.
The main destinations for Saudi diamonds were Singapore, the UK and Hong Kong, among others.
The market has grown swiftly, and with ongoing developments, Saudi Arabia could potentially increase its influence within the global diamond trade.
Diamonds have risen as a unique alternative investment, and have outperformed traditional assets such as the S&P 500.
With prices demonstrating long-term stability and impressive gains, they have become attractive to investors seeking diversification.
According to Larsen, however, in the last year colourless diamond prices fell by 20 per cent, thanks to a combination of the lab grown diamond market, geopolitical tensions and change in supply.”
Jewellery shows across the kingdom have become essential platforms to showcase Saudi Arabia’s influence in the diamond industry.
Although the kingdom does not have its own diamond mines, its strategic position in the global supply chain is underscored by its strong export performance and growing consumer base.
“As women are the primary buyers of gemstones in the kingdom, the design of women’s accessories is prioritised, followed by men’s rings,” Nawwaf Al Luhaibi, a specialist in the gemstone industry told Arab News.
Al Luhaibi said that dealing in gemstones is becoming a prosperous business in Saudi Arabia due to the availability and quality of gems.
Many Saudis are increasingly entering the industry by creating innovative and distinctive masterpieces.
“There is a great demand from those interested, and amateurs in the field of gemstones are increasing significantly,” he said.
According to a report by the Observatory of Economic Complexity, the kingdom’s diamond imports reached $33.3m in 2022, making it the 42nd largest importer globally.
&uuid=(email))