Saudi Arabia Precious Metals Market

Saudi Arabia Precious Metals Market Size and Share:

The Saudi Arabia precious metals market size was valued at USD 7.16 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 12.51 Billion by 2033, exhibiting a CAGR of 6.08% from 2025-2033. The market is primarily driven by growing industrial demand, particularly in sectors such as electronics, automotive, and healthcare. The country’s increasing investment in gold and silver as safe-haven assets further enhances market growth. Moreover, global market trends, including inflation concerns and geopolitical tensions, also contribute to higher demand for precious metals as a store of value.

The Saudi Arabia precious metals market is primarily driven by strong domestic demand, fueled by both cultural and economic factors. Gold, in particular, holds significant cultural value in Saudi Arabia, often regarded as a symbol of wealth and social status. This cultural affinity for precious metals, especially gold, continues to sustain demand across various segments, including jewelry, investment, and gifting. Therefore, this is acting as one of the key Saudi Arabia precious metals market drivers. Furthermore, Saudi Arabia's growing wealth, driven by the oil industry and its economic diversification plan, has influenced increased disposable income, enabling more citizens to invest in precious metals as a store of value and hedge against inflation. On 4^th September 2024, Saipem secured contracts worth USD 1 Billion for two offshore oil and gas projects in Saudi Arabia with the help of Aramco. The company will be engaged in the engineering, procurement, and installation of subsea pipelines, power cables, and production modules for the projects on the Marjan, Zuluf, and Safaniya fields.

In addition to cultural factors, economic drivers such as inflation and currency fluctuations play a crucial role in Saudi Arabia precious metals market growth. Saudi Arabia's central bank reserves increased 2.8% from a year ago to SR1.69 Trillion (USD 450.31 Billion) in November, helped by Saudi Aramco's USD 31.1 Billion dividend on 21^st January 2025. Foreign assets, including foreign securities, accounted for 94.6% of the reserves, marking a growing aspect of the Kingdom's diversification strategy. As a result of global economic uncertainties, investors in Saudi Arabia turn to precious metals, particularly gold and silver, as safe-haven assets. Precious metals are perceived as stable, tangible investments that can retain value during periods of economic instability. Additionally, government policies that promote investment in precious metals, including tax incentives and ease of access to metal trading, further support the market. These combined factors contribute to a positive precious metals market outlook in Saudi Arabia.

Saudi Arabia Precious Metals Market Trends:

Increasing Interest in Investment Gold

A prominent trend in Saudi Arabia’s precious metals market is the growing interest in investment-grade gold. Gold in Saudi Arabia escalated to SAR 4,019 per tola on February 11, 2025. The price of 10 grams of gold is now SAR 3,450 and an ounce SAR 10,730 due to global market volatility. Moreover, the open market saw a hike in the value of the Saudi Riyal (SAR) against the Pakistani Rupee (PKR) to Rs74.45. As global economic uncertainties persist, Saudi investors are increasingly turning to gold as a safe-haven asset. This shift is particularly evident in the rising demand for gold bars, coins, and ETFs (Exchange-Traded Funds), which offer a more accessible and liquid means of investing in gold compared to traditional jewelry. This trend is also bolstered by local financial institutions offering easier access to precious metal investment products. According to the Saudi Arabia precious metals market analysis, as the Saudi government continues its Vision 2030 initiatives, which encourage diversification and wealth preservation, there is a stronger push for retail and institutional investors to diversify their portfolios with gold, mitigating risks posed by market volatility and inflation.

Expansion of Local Precious Metals Refining Capacity

Saudi Arabia is witnessing a significant expansion in its domestic precious metals refining capacity. This trend is fueled by both the country’s growing demand for high-quality refined metals and the strategic drive to strengthen its position as a key player in the global precious metals supply chain. On 26^th November 2024, Platinum Group Metals Ltd. and Ajlan & Bros entered into an MOU with the Saudi Ministry of Investment to set up a platinum group metals smelter, a base metal refinery in the Kingdom, in support of Saudi Vision 2030. The project, including the Waterberg Project in South Africa, will be aimed at diversifying the mining and minerals industry of the region. According to the Saudi Arabia precious metals market research report, the government has incentivized the development of refining infrastructure to enhance the value-added processing of raw materials. The establishment of local refineries reduces the country’s reliance on foreign imports and aligns with Saudi Arabia’s vision to develop a robust and diversified economy. This trend is encouraging the growth of a local market for high-grade precious metals, thus increasing Saudi Arabia's attractiveness as a regional and global center for precious metals trading.

Growth in Jewelry Demand Driven by Consumer Preferences

One of the significant Saudi Arabia precious metals market trends is the continued demand for high-quality jewelry, particularly gold. The country’s long-standing cultural appreciation for gold jewelry as a symbol of wealth, tradition, and status remains a key driver of the market. However, recent shifts in consumer preferences towards unique, personalized, and ethically sourced jewelry have started to influence the local jewelry market. Consumers are more interested in exclusive, high-end designs that reflect individual tastes, alongside an increasing desire for transparency regarding the sourcing and production processes. On 21^st January 2025, Sotheby's announced its first international auction, taking place on February 8, 2025, in Diriyah, and features more than 100 luxury items, such as a Richard Mille watch estimated at USD 1-1.5 Million and a Cartier Crash watch that may sell for up to USD 260,000. The auction aims to feature fine jewelry, watches, and luxury goods ahead of the Diriyah Season. In addition, many jewelers in the region are using these tastes in their product line, while international luxury brands are opening more stores in Saudi Arabia in order to take advantage of the increasing demand for high-quality jewelry.

Saudi Arabia Precious Metals Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia precious metals market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on metal type and application.

Analysis by Metal Type:

• Gold
  • Jewelry
  • Investment
  • Technology
  • Others
• Platinum
  • Auto-catalyst
  • Jewelry
  • Chemical
  • Petroleum
  • Medical
  • Others
• Silver
  • Industrial Application
  • Jewelry
  • Coins and Bars
  • Silverware
  • Others
• Palladium
  • Auto-catalyst
  • Electrical
  • Dental
  • Chemical
  • Jewelry
  • Others
• Others

A significant part of Saudi Arabian precious metals remains gold. The market is driven by both investment demand and cultural preferences. Gold jewelry has been well patronized for its relevance as a symbol of wealth and status. Gold is also widely perceived as a haven and remains an investment tool, especially during times of economic uncertainty. Its consumption ranges from retail to institutional investment, making it a central player in the market.

Platinum occupies a niche but stable position on the market of precious metals in Saudi Arabia. Basically used in high-end jewelry, platinum demand is provided with the stimuli of its rarity and luxury appeal. It is also in demand in the automotive and industrial sectors, though its use in Saudi Arabia tends to be more concentrated in the luxury goods market. The growing affluence of Saudi consumers has led to a steady, albeit moderate, increase in Saudi Arabia precious metals market demand.

Silver is becoming increasingly popular in Saudi Arabia, both as an investment tool and in jewelry form. Although gold is the most traditionally pursued, lower prices of silver make it more competitive for younger consumers and first-time investors. Silver demand is also driven by the industrial use of the metal in electronics and solar technology. Its increasing adoption in fashion jewelry further enhances Saudi Arabia precious metals market share, creating broader appeal across different demographics.

Palladium, being relatively a newcomer in the Saudi market for precious metals, is experiencing gradual growth. Its major usage is in the automotive industry in catalytic converters, though lately, there has been increased usage in jewelry, as it does not causeallergies and leaves an attractive shiny shine. Investors also have a strong interest in diversifying precious metal portfolios through this metal due to its volatility that creates opportunities in trading.

Analysis by Application:

• Jewelry
• Investment
• Electricals
• Automotive
• Chemicals
• Others

Jewelry is one of the most important sectors in Saudi Arabia's precious metals market. The demand for gold and platinum jewelry is increasing as they have a cultural value attached to them, besides their status symbol appeal. With the rise in affluent consumers, demand for high-quality and custom-designed jewelry is growing. Moreover, growing interest in sustainable and ethically sourced products among consumers has impacted the market and compelled jewelers to opt for more transparent production practices.

The investment sector in Saudi Arabia is driving the precious metals market, and the most in-demand asset in the country is gold. The reason for the increased demand is that precious metals, especially gold, act as safe havens for investors during periods of inflation and economic uncertainty. Increasing disposable income and better financial education increase the demand for metal-based investment vehicles such as ETFs, gold bars, and coins. Thus, precious metals are a must in diversified investment portfolios.

Precious metals such as silver, platinum, and palladium are applied for electrical applications mainly because of their good conductivity and anti-corrosion properties. The electrical segment in Saudi Arabia is rapidly increasing with growing electronics and renewable energy technologies such as solar panels and batteries. The demand for precious metals is stable in the electrical segment as the high-performance components are required for smartphones, computers, and industrial machinery.

The main consumers of the automotive industry include palladium, platinum, and rhodium for catalytic converters to reduce toxic emissions. With domestic production increasing alongside imports in the Saudi automobile market, demand for these precious metals has kept pace. More recently, growing Saudi attention to environmental and sustainability requirements has continued to fuel precious metals usage in cleaner automotive technologies, thus reinvigorating their role in the industry.

Platinum, palladium, and rhodium are notable in catalytic processes for industrially used things such as refinery of petroleum and fertilizers alongside chemical production. Petrochemical, being one of the country's significant industries set under the nation's diversification strategy, 'Vision 2030', translates to a giant demand for noble metals in chemically based manufacture. The necessity of these materials will remain unabated due to efficiency, decreasing emissions, and improvement in product quality over time.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Demand for precious metals in both the Northern and Central regions of Saudi Arabia is average. Their demand is primarily for jewelry and investment markets. The capital, Riyadh, accounts for a vast portion of the market due to its economic influence and because many high-net-worth individuals call this city home. Gold remains the most popular metal, with increasing investment interest influenced by economic growth and rising awareness of alternative investment opportunities including gold bars and coins.

The Western region, including Jeddah and Mecca, exhibits a strong demand for both jewelry and investment-grade gold. The region’s cultural and religious importance, particularly Mecca as a pilgrimage destination, drives demand for gold as a symbol of wealth and tradition. Additionally, the growing number of affluent consumers in urban areas such as Jeddah has spurred interest in luxury items, such as high-end platinum jewelry and exclusive gold investments, enhancing market growth.

A thriving precious metal market exists in the Eastern region, driven mainly by industrial sectors, mainly petrochemicals and automobiles. Platinum and palladium are among the precious metals in high demand for catalytic converters and chemical processes. The affluent population in Dammam and Khobar creates an extensive jewelry market, where gold is also a first choice for personal ornamentation and investment.

The demand for precious metals is more moderate in Saudi Arabia's Southern region, corresponding to cities such as Abha and Khamis Mushait. Gold jewelry is mostly present in demand. Local market: The local market is predominantly driven by cultural traditions, as gold is always considered valuable for marriage and social occasions. Though the region has far less of an overall wealth mark than other areas, rising consciousness and economic development are slowly but surely creating a consistent increase in demand for both jewelry and investment-grade gold.

Competitive Landscape:

The competitive landscape of the market is impacted by a blend of local and international players having dominance in the market for several segments, particularly gold, platinum, and silver. The major market participants are expanding their refining capacities and are taking steps to upgrade supply chain efficiencies to serve the increasing demand for quality precious metals. Some of them are diversifying product lines in an attempt to keep up with the Saudi Arabia precious metals market growth drivers. Moreover, players are also heavily investing in technological advancement to help enhance customer experience such as offering online platforms for metal trading and easy access to investment products. Strategic partnerships including bank and financial institutions partnerships have become common practices to extend solutions to both retail and institutional investors that enhance the growth of the market.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia precious metals market with detailed profiles of all major companies.

Latest News and Developments:

• January 22, 2025: Saudi Arabia's Manara Minerals Investment Company announced purchasing a 10-20% stake in Pakistan's Reko Diq mine, considered the world's largest copper and gold mine project, for USD 500 Million to USD 1 Billion. The 400,000-ton copper and half a million ounces of gold to be produced annually by the mine are already developed by Canada-based mining company Barrick Gold.
• November 26, 2024: Saudi Arabia has signed a USD 9.32 Billion of mining deals with a USD 2 Billion investment by Vedanta Copper to build a copper smelter and refinery in the kingdom, which is aimed at increasing mining activity and lowering the import-dependent nature of its economy under the Vision 2030.
• November 24, 2024: Bagatyan Gold and Jewelry, a leading Saudi company, declared plans to expand into the Egyptian market, with a focus on the 24-karat bullion sector, which recorded 7.6 tons of demand in Q2 2024. The company has more than 60 years of experience and will be targeting Egypt's growing gold market as well as government initiatives aimed at attracting investment.
• October 16, 2024: Egypt-based jeweler Azza Fahmy has opened its first boutique at Riyadh's Kingdom Centre, creating a 55-year legacy for exclusive collections. The 80-square-meter Attar United-developed store carries jewelry that celebrates Egyptian artistry and regional craftsmanship.
• June 24, 2024: PDPAOLA, a Spanish jewelry brand, marked its entry into the Saudi market with new stores in Dammam, Madinah, Riyadh, and Jeddah. The PDPAOLA brand offers modern stylish jewelry. The company plans further regional expansions into the UAE, Qatar, Kuwait, Bahrain, and Oman.

Saudi Arabia Precious Metals Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia precious metals market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia precious metals market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia precious metals industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.