Saudi Arabia the emerging player global fashion landscape, plans to reduce reliance on overseas imports and put the country on the map of homegrown talent.
According to a report titled ‘The State of Fashion in the Kingdom of Saudi Arabia 2023’, there is an extraordinary growth potential in the Saudi fashion industry, which is in line with the nation’s vision and how the Kingdom’s youth are putting the country on the global fashion stage.
The emergence of Saudi Arabia’s domestic fashion industry is part of Vision 2030, a comprehensive strategy aimed at diversifying the nation’s economy and reducing its dependence on oil. The report states that a thriving fashion sector can play in achieving these goals. Saudi Fashion Commission CEO Burak Cakmak says: “We are building the foundations for the future of fashion right now, here in Saudi Arabia.”
The report states that Saudi Arabia aims to reduce its reliance on imported fashion goods, by fostering a self-sufficient fashion value chain encompassing design, manufacture, logistics, and retail. It will create jobs and bolster non-oil gross domestic product (GDP).
Saudi Arabia’s fashion industry accounted for a substantial expenditure of $7.3 billion on imported fashion goods in 2021, underscoring the potential economic impact of fostering domestic fashion capabilities.
Saudi Arabia aims to reduce its reliance on imported fashion goods by creating a domestic value chain — from design and manufacture to logistics and retail according to the report. Currently, Saudi Arabia’s retail sourcing profile is overwhelmingly import-dependent. The total trade deficit for the Kingdom’s finished goods industry for fashion was $6.5 billion (SAR 24.4 billion) in 2021, an increase from $5.1 billion (SAR 19.1 billion) in 2017. The bulk of this trade deficit is driven by apparel and footwear.
International brands that have recently directly invested in the Kingdom include the Adidas Group and Nike Inc.
Much of the young Saudi population has studied abroad and is coming home to be part of the Vision 2030 evolution. With that international exposure, they are bringing back different cultures and mixing them with their own, the report states. It adds that the Saudi fashion industry has displayed remarkable growth, substantiated by tangible economic contributions.
In 2022, the industry’s GDP contribution had reached an impressive 1.4 percent, amounting to $12.5 billion. The sector also provided employment opportunities to 230,000 individuals, representing 1.8 percent of Saudi Arabia’s total workforce.
This remarkable growth trajectory is further highlighted by the industry’s value, which increased from $24.6 billion in 2021 to $46.9 billion in 2022, according to the report.
Around 52 percent of the fashion industry’s workforce comprises female employees. Additionally, 66 percent of all fashion jobs within the country are held by Saudi nationals, reflecting a commitment to local talent development and economic empowerment.
American fashion designer, Amina Ja’arah, walks on the catwalk during the Jimmy Fashion Show, where local and international fashion designers launched their collections, in Riyadh, Saudi Arabia, August 25, 2022. (Reuters)
Local design schools and universities, such as King Abdulaziz University and Princ-es Nourah Bint AbdulRahman University, are nurturing this creative energy, while international education bursaries enable Saudi creatives to imbue their designs with global perspectives. While the growth in design-related courses is apparent, the report notes the challenge lies in developing technical skills critical for production, such as pattern-making and garment technology.
Saudi Arabia also held its first-ever international wholesale event with 100 Brands during Milan Fashion Week in September 2022
As the global fashion industry turns its attention to sustainability, Saudi Arabia is no exception. The Saudi Green Initiative, aligned with Vision 2030, emphasizes environmental, protection, energy transition and sustainability. The National Center for Waste Management’s initiative to recycle discarded clothing, as well as the Fashion Commission’s “swap shop” promoting second-hand clothing, reflect Saudi Arabia’s commitment to circular fashion principles.
There is a big investment in innovation as well. The focus area is sustainable material solutions, from recycled materials and other alternative materials. A sustainable materials research center has been set up at King Abdulaziz University’s Science and Technology Center (KAUST) to help scale up solutions for more sustainable materials, not just for the benefit of Saudi Arabia, but for the rest of the world.
Saudi Arabia an emerging Fashion giant
