Saudi Arabia's shoppers are picking more gold jewellery
Dubai: Saudi shoppers are definitely not holding back when it comes to gold jewellery purchases. Even when their counterparts in the rest of the world are going light on buying jewellery because of the never-before-seen price gains in the year-to-date. It also meant that last week gold surged to $3,500 an ounce. (Currently, it is at $3,313.)
In fact, during the first three months of 2025, Saudi shoppers 11.5 tonnes of jewellery, which is a staggering 35% up on the 8.5 tonnes in Q1-2024, according to the latest global market update from World Gold Council.
In comparison, shoppers in the UAE picked up 7.9 tonnes of gold jewellery in Q1-2025, down 11 from the 9.6 tonnes a year ago,
'Saudi Arabia's had robust growth on the economic front and that's being reflected in the positive consumer sentiments,' said Andrew Naylor, Head of ASEAN Markets and Public Policy at World Gold Council. 'That bullish sentiment plays a key role in consumer spending, especially in the jewellery market.
'That's probably the main reason why Saudi gold consumers bucked the global trend in jewellery demand.'
Over and above the gold price and making charges, Saudi Arabia also has a 15% VAT. Unlike in the UAE, Saudi gold and jewellery demand mostly derives from its domestic consumers.
'Yes, Saudi Arabia is less internationally exposed to the tourist trade,' said Naylor. 'But when you look at similar markets such as Kuwait, they too had a decline in jewellery spending.'
How did rest of the world fare on jewellery?
There was a 21% drop in global demand for gold jewellery in Q1-2025 to 380.3 tonnes from 480.1 tonnes, with Chinese buyers pitching in with 125.3 tonnes (184.4 tonnes in Q1-24). Indian shoppers helped out with 71.4 tonnes against 95.5 tonnes a year ago.
'The headline-grabbing gold price rise dominated the jewellery sector in Q1 causing a notable decline in global volumes through its impact on consumer affordability,' says the World Gold Council report.
'But the value of Q1 gold jewellery consumption increased 9% to $35 billion. Value growth was seen in every market except China, suggesting that consumers were prepared to stretch their budgets.'
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