Saudi Arabia Stays Top Middle East Gold Jewellery Market as UAE Demand Falls 29%

Saudi jewellery purchases fell 12 per cent year on year to 8.2 tonnes, from 9.3 tonnes. Demand across the Middle East dropped 22 per cent to 26.2 tonnes, from 33.4 tonnes a year earlier.

The UAE had one of the steepest falls, with jewellery demand down 29 per cent to 4.5 tonnes from 6.4 tonnes. Kuwait also fell 29 per cent, to 1.7 tonnes, and the remaining Middle East markets fell 43 per cent to 2.5 tonnes. Egypt fell 12 per cent to 3.8 tonnes, which Arab News attributed to subsidy cuts, inflation and very high interest rates. Turkiye declined only 4 per cent, to 7 tonnes.

The council blamed high gold prices, pressure on household budgets and ongoing geopolitical uncertainty, including weak tourist numbers, for holding back discretionary spending across the region.

Relative Resilience

Aseel Al-Aranki, head of financial market analysis at CG Invest, told Arab News that Saudi demand fell about half as much as the regional total. As a result, the kingdom's share of regional demand rose to about 31 per cent from 28 per cent. She said Saudi Arabia accounted for only about 1 tonne of the roughly 7-tonne regional drop.

She cautioned that this is a year-on-year comparison, not a recovery. Saudi demand fell 20 per cent from 10.3 tonnes in the second quarter, which itself followed 12.7 tonnes in the first quarter.

Saudi demand for gold bars and coins fell 9 per cent to 4.1 tonnes as some investors took profits around September's interest rate rise, the first since 2023. Regional investment demand fell 24 per cent.

Global Picture

Worldwide, jewellery consumption fell 17 per cent to 313 tonnes. It was the weakest third quarter since records began in 2000 and the 13th quarterly decline in a row. Because gold averaged $4,262 an ounce, up 23 per cent, the value of jewellery demand still rose 2 per cent to $43 billion. The council expects global jewellery demand to fall again year on year in the fourth quarter.

For Gulf retailers, the figures point to customers buying fewer, lighter pieces while total spending holds up better than volumes. Al-Aranki said that pattern is likely to continue until prices ease or buyers fully adjust.