RIYADH: As Saudi Arabia continues its remarkable journey toward economic diversification and modernization under Vision 2030, the Kingdom’s fashion and sportswear markets have become increasingly significant.

With the Saudi Fashion Commission projecting growth rates of 48 percent in apparel and footwear retail sales by 2025, international fashion brands are now competing for a foothold in the rapidly expanding market.

This trend was evident at the Saudi Lifestyle Week held recently at the Riyadh International Convention and Exhibition Center. The event attracted global fashion leaders from Italy, Portugal, Germany and Spain, all seeking to explore opportunities in the Kingdom’s booming fashion industry.

With Saudi Arabia’s non-oil economy experiencing 4.6 percent growth in 2023, sectors such as fashion and retail are expected to flourish.

According to the event’s organizers, the Kingdom’s retail space is growing, with 962,000 sq. meters of new retail development anticipated this year.

This expansion — coupled with a young, tech-savvy population increasingly drawn to e-commerce — offers fertile ground for international brands to enter and thrive in the Saudi market.

Alberto Scaccioni, CEO of Ente Moda Italia, shared his insights on the potential of the Saudi market, especially for Italian fashion brands.

He said: “Italian fashion brands are looking to engage with Saudi consumers by offering unique designs that appeal to the younger generation, who are increasingly setting the trends in this region.”

For countries like Portugal, renowned for its footwear industry, Saudi Arabia represents a key target for expansion.

The Portuguese Footwear Association has been closely monitoring the evolution of the Saudi market, especially the rise in demand for high-quality, durable products.

Joao Maia, general manager of the association, said: “Saudi Arabia plays a crucial role in our global strategy as it presents a growing demand for premium footwear, particularly among younger consumers seeking style and comfort.”

Similarly, Koray Suce from Expotim, representing Turkish brands, said that Turkish companies were increasingly focusing on Saudi Arabia as a market ripe with potential.

Suce said: “Growth opportunities for Turkish fashion brands in Saudi Arabia are significant, especially with the Kingdom’s Vision 2030 initiative, which is driving consumers toward more diverse and global fashion choices.”

The growth of e-commerce has also shifted the landscape for international fashion brands in Saudi Arabia.

The Kingdom is seeing a steady increase in online apparel stores, with more than 5,000 launched in 2024, according to the event’s organizers.

This trend aligns with the global shift toward online shopping, especially among younger consumers who value convenience and a broader selection of products.

Marlene Oliveira, head of the international unit at Centro de Inteligencia Textil, also known as CENIT, said: “Saudi consumers are increasingly shifting toward online shopping for both apparel and accessories.

“This presents a unique opportunity for brands to expand their digital presence and engage with consumers in a more personalized way.”

One of the main draws for international brands is Saudi Arabia’s growing interest in luxury goods.

The value of luxury fashion purchases across the Gulf reached $9.7 billion in 2021, with Saudi Arabia leading the growth at 19 percent, according to the Fashion Commission.

Rocio Minguez, secretary-general of the Spanish Fur Association, highlighted Spain’s role in meeting this demand.

Minguez said: “Spanish fashion and fur brands are implementing strategies to capture the attention of Saudi consumers by offering high-quality, luxury items that resonate with the Kingdom’s growing appetite for premium products.”

Germany is also looking to expand its footprint in the Saudi market, particularly in the footwear sector.

Manfred Junkert, CEO of the German Footwear Association, spoke about Germany’s interest in the Saudi market.

He said: “We see the Saudi consumer as sophisticated and increasingly drawn to well-made, sustainable products. German footwear brands are planning to capitalize on this by introducing more eco-friendly collections tailored to this market.”

Saudi Arabia’s commitment to diversifying its economy through Vision 2030 has paved the way for substantial growth in the fashion and retail sectors.

The Ministry of Culture’s Fashion Commission is playing a key role in guiding the expansion of the industry, with initiatives like Riyadh Fashion Week garnering international attention.

The commission’s focus on supporting local designers while attracting international brands is transforming Saudi Arabia into a fashion hub.

Federica Dottori, head of international promotion at Sistema Moda Italia, said: “The future of Italian textiles and fashion in Saudi Arabia looks promising, especially with the growing interest in high-quality fabrics and unique designs.

“We are excited to be part of this journey as the Saudi market continues to grow and evolve.”