Arab News, Mon, May 27, 2024 | Dhu al-Qadah 19, 1445
Saudi fashion industry projected to expand by 48% by 2025
Saudi Arabia:
Saudi Arabia’s fashion industry is set to post a cumulative annual growth of 48
percent from 2021 to 2025 as the Kingdom diversifies its economy, a report
said.
In its latest quarterly release, the Small and
Medium Enterprises General Authority said that Saudi Arabia’s Fashion Commission
is playing a crucial role in building a more robust ecosystem to propel the
sector’s growth.
The authority, also known as Monsha’at, revealed
that the fashion industry contributed 1.4 percent of the Kingdom’s gross
domestic product in 2022.
The report added that the total value of the
fashion sector in Saudi Arabia, including international brands, stood at $24.6
billion in 2022.
On the other hand, the domestic fashion industry
in the Kingdom was worth $12.5 billion in 2022.
“Saudi Arabia has embarked on a profound
transformation across multiple industries. This renaissance spans architecture,
music, film, art, food, and more. Through diverse initiatives at the Fashion
Commission, we are revolutionizing the fashion sector and elevating our talents
to global stages while adhering to the core pillars that drive growth and
sustainability,” said Burak Cakmak, CEO of the Fashion Commission.
He added: “Due to several strategic initiatives
that fostered a dynamic ecosystem of creativity and business acumen, the growth
of the fashion industry in Saudi Arabia over the past few years has been
unprecedented.”
Cakmak said that developing local talent in the
Kingdom is one of the crucial missions of the Fashion Commission.
He added that the organization has initiated
comprehensive educational programs, workshops, and mentorship opportunities to
develop the growth of Saudi nationals in the sector.
The official also noted that the commission
assists small and medium enterprises operating in the sector in growing and
expanding their businesses.
“We also advance the industry by providing
essential support to entrepreneurs and SMEs, offering assistance and resources
that help businesses scale. Regulatory frameworks are established and enforced
to ensure ethical practices and sustainability, while cultural preservation
initiatives highlight Saudi heritage, promoting it both locally and
globally,” said Cakmark.
The Monsha’at report added that the fashion
industry in Saudi Arabia has employed over 230,000 people as of 2022, and 52
percent of the workforce is female.
The authority revealed that the women’s apparel
market in the Kingdom will witness a 20 percent growth by 2027, while the men’s
market is set to expand by 27 percent during the same period.
Cakmak added that participation in international
fashion events by Saudi companies will help affirm the place of the Kingdom in
the global arena.
“Market expansion efforts, including marketing
campaigns and participation in international fashion events, further enhance the
visibility and competitiveness of Saudi fashion brands. All of these are core
strategic pillars that effectively nurture a vibrant, dynamic, and globally
competitive fashion industry in the Kingdom,” Cakmak noted.
He concluded: “We believe that the future of Saudi
fashion lies in the hands of our talented designers and visionary entrepreneurs.
As we continue to support and nurture these individuals, we are confident that
the Kingdom’s fashion industry will continue to flourish.”