Middle East & Africa Gems & Jewelry Market Outlook, 2028

Middle East & Africa Gems & Jewelry Market Outlook, 2028
Jewelry is considered a trendy accessory in the Middle East region; hence, diamonds and gemstones are in high demand in the area. Gold is regarded as a sign of affluence and wealth in the Middle East culture, which is a significant factor propelling the demand for jewelry in the region. Jewelry designers in the Middle East focus on making modern jewels with unique designs that reflect Arabic history to the world. Middle Eastern countries, such as Saudi Arabia, United Arab Emirates, and Bahrain, are considered global shopping destinations for jewels and electronic items. Recently, tourism in the Middle East countries has become one of the fastest-growing industries for leisure, social, or business purposes and is expected to grow significantly soon, which will boost the demand for jewels and gems in the region. Many international brands such as Chanel, Louis Vuitton, and Tiffany & Co. focus on launching premium products in the Middle East due to the growing demand for modern jewel products. For instance, in May 2020, Louis Vuitton, a France-based company, launched an exclusive jewelry piece from its B Blossom Collection in the GCC region. The jewels and gems pieces were exclusively found for the Ramadan season in the Middle East region. Gems and jewelry have been a symbol of opulence, status, and cultural identity throughout history, transcending borders and generations. In the captivating regions of the Middle East and Africa, where rich traditions, diverse cultures, and vibrant histories intersect, the gems and jewelry market tells a story of heritage, craftsmanship, and timeless beauty. From the resplendent brilliance of precious stones to the intricate designs inspired by centuries-old traditions, the Middle East & Africa gems and jewelry market is a dazzling mosaic of culture, elegance, and symbolic significance.

According to the research report, “Middle East & Africa Gems & Jewelry Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 80 Billion market size by 2028. The Middle East has a long-standing tradition of using and trading gems and jewelry. Countries like Egypt, Iran, and Turkey have ancient civilizations that valued precious stones and intricate jewelry designs. The Middle East hosts some of the most extravagant and luxurious jewelry shows and events. The Doha Jewellery and Watches Exhibition in Qatar and the Jewellery Arabia event in Bahrain showcase high-end jewelry designs. Tanzania, in East Africa, is the only known source of tanzanite, a blue-violet gemstone. Discovered relatively recently in 1967, tanzanite quickly gained popularity due to its unique color. The African continent, especially countries like Sierra Leone and Angola, has faced issues related to conflict diamonds or ""blood diamonds,"" which are used to fund armed conflict against governments. Efforts have been made to implement ethical sourcing practices to combat this issue. Many countries in Africa and the Middle East have a deep cultural attachment to jewelry. Traditional jewelry designs often hold symbolism related to social status, spirituality, or tribal identity. Modern designers in the Middle East and Africa are blending traditional craftsmanship with contemporary aesthetics. This fusion results in unique and captivating jewelry pieces that appeal to a global audience. Furthermore, the opulence of the gems and jewelry market in places like Dubai has turned the region into a popular destination for luxury shoppers and tourists interested in high-end jewelry.

Based on the countries, Saudi Arabia is expected to cross USD 7 Billion by 2028. Saudi Arabia has one of the highest per capita gold consumption rates in the world. Gold is deeply ingrained in the culture, often worn by both men and women as a symbol of wealth and status. For instance, weddings in Saudi Arabia are lavish affairs, and jewelry plays a central role. Elaborate sets of gold jewelry, known as ""tahriri,"" are gifted to brides as part of their dowry. These sets can include necklaces, bracelets, earrings, and more. Traditional Saudi Arabian jewelry designs often feature intricate filigree work, calligraphy, and geometric patterns. These designs are influenced by the region's rich cultural heritage. While traditional designs remain popular, there's a growing trend toward modern and contemporary jewelry styles that cater to changing tastes and fashion preferences. The discovery of oil in Saudi Arabia has contributed significantly to the country's wealth, which, in turn, has boosted the demand for luxury items like precious gems and jewelry. Also, the wearing of jewelry in Saudi Arabia is not just about aesthetics; it often follows cultural norms and religious guidelines. For instance, some women may choose to only wear jewelry in the presence of female family members. Like many other markets, the online jewelry market is growing in Saudi Arabia, allowing consumers to explore a wide range of designs and make purchases from the comfort of their homes.

Based on the product type, the rings segment holds a significant share in the market, owing to increasing popularity among women and rising demand for traditional and ethnic jewelry. The rings segment is expected to grow significantly throughout the forecast period owing to increasing popularity and preference for corporate dressing rings and rising trends of personalized rings such as wedding rings, engagement rings, and promise rings in the Middle East and Africa. On the other hand, necklaces are also one of the most popular jewelry among women in the Middle East and African countries. Trending necklaces, such as diamond collars & chokers necklaces, chain link necklaces, celestial & locket necklaces, and charm necklaces, among millennial and the growing popularity of necklace layering are driving the jewelry market growth. Bracelets and earrings segments are also expected to grow steadily throughout the forecast period. The trend of hoop earrings with clustered diamonds, engagement bands, and tennis bracelets is driving market growth in Saudi Arabia, Turkey, South Africa, and the UAE. Based on the material, gold has been used for centuries to make jewelry, making it an integral part of lifestyles, cultures, and occasions. The rising demand for gold ornaments is boosting, owing to increasing consumer spending in wedding and festive seasons. The segment is dominating the market in 2022 with highest revenue generation. The Middle East is famous for its vibrant and bustling gold souks (markets). The Gold Souk in Dubai, United Arab Emirates, is particularly renowned for its vast selection of gold and jewelry.

On the other hand, diamonds are considered women’s pride and are more attractive owing to their ability to reflect light and sparkle. The demand for diamonds is growing across the Middle Eastern & African countries due to the growing popularity of mixed-cut diamonds, rose-cut diamonds, and briolette diamonds, offering a 360-degree view of the diamond. Furthermore, lab-grown diamonds are an important trend in the market and manufacturers are introducing fully-certified imported lab-grown diamond collections in the Middle East & African countries. Dubai has emerged as a major hub for the diamond trade in recent years. It has developed into one of the world's largest diamond trading centers, attracting buyers and sellers from around the globe. The Middle East jewelry Industry is also facing several restraints such as volatile nature of gold prices, high competition, changing consumer preferences, and geopolitical instability. Additionally, counterfeit jewelry products can undermine consumer confidence in the market, thereby affecting demand for authentic jewelry in the region. The Middle East jewelry market is highly fragmented with the presence of small and medium-sized players. The leading players in the market are focused on expanding their product offerings and geographical reach to gain a competitive edge over their competitors.

Market Dynamics

• Precious Stones and Noble Metals: The region is renowned for its abundant natural resources, with countries like South Africa being major players in the diamond industry. Diamonds, rubies, emeralds, and sapphires are prized for their dazzling beauty and enduring value. Gold also holds a special place in the hearts of Middle Eastern and African cultures, often used to create elaborate pieces that reflect cultural heritage and celebrate significant life events. In the Middle East and Africa, various life events such as weddings, engagements, and religious ceremonies hold immense importance. These occasions are often marked by the exchange of jewelry as gifts, which adds to the demand for gems and jewelry in the region. The Middle East, in particular, is known for its elaborate and grand weddings, where jewelry plays a central role in displaying affluence and social status.

• Gender Empowerment and Changing Demographics: As gender roles and societal norms evolve in the Middle East and Africa, the traditional market dynamics for gems and jewelry are facing shifts. Increasingly, women are becoming financially independent and making their purchasing decisions, including when it comes to jewelry. This change poses a challenge for the industry, as it requires adapting marketing strategies, designs, and customer engagement approaches to cater to a diverse and empowered customer base.

• Cross-Cultural Influences and Modern Designs: The Middle East and Africa gems and jewelry market is witnessing a trend of cross-cultural influences and modern design interpretations. As global communication and cultural exchange increase, designers are incorporating elements from different cultures and traditions into their jewelry creations. This fusion of styles creates a unique aesthetic that resonates with the region's diverse and cosmopolitan consumer base.

Key Players Insights

Key players like LVMH Moët Hennessy Louis Vuitton, Kering S.A., Compagnie Financière Richemont S.A, Ralph Lauren Corporation, Burberry Group plc, D. Swarovski KG, Prada S.p.A., Giorgio Armani S.p.A., Chanel Limited and Titan Company Limited compete fiercely in the gems and jewelry market. To enhance their geographic reach and consumer base, major businesses are concentrating on online distribution channels for the online marketing and branding of their products. Due to their rising income levels and cultural traditions, wherein people in China and India view giving jewelry ornaments as auspicious, leading manufacturers in the gems and jewelry industry are concentrating on utilizing the opportunities presented by these emerging markets to increase their revenue. To give their product offers a luxurious feel and flawless craftsmanship, the leading brands are launching innovative projects and new product advancements.

Recent Developments:

• In September 2022, Messika, a modern diamond jewelry house, launched a special Saudi limited edition of its iconic Lucky Move medium model necklace to mark Saudi Arabia’s National Day.

• In August 2022, EdgeStone, a contracting company, launched Rock Gold Mall, the first specialized mall in gold jewelry in Egypt.

• In May 2022, Kalyan Jewelers, an India-based company, recently launched its new showroom at the Dubai Gold Souk. The new store will offer designs from the exclusive collection showcasing bridal jewelry designs from India. The brand’s strategy is to increase accessibility for customers in the Middle East market, where they will attract tourists to the Dubai Gold Souk in the UAE.

• In May 2022, DAAMC Group, a UAE-based Property Development Company, announced the acquisition of Swiss luxury brand de GRISOGONO, a Switzerland-based company after the company filed for bankruptcy. De GRISOGONO is a manufacturer of necklaces, earrings, rings, and bracelets. The company's strategy is to expand its business in luxury and high-end fashion products.

• In March 2021, L’azurde, a jewelry brand headquartered in Saudi Arabia, launched its new jewelry collection that is glamorous, trendy, and made with high-quality gold and encrusted with diamonds, pearls, and precious stones for women. The company launched an advertising campaign to show selected pieces for Valentine’s Day collection in addition to a limited bridal jewelry collection in 2021.

Considered in this report

• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Middle East & Africa Gems & Jewelry with its value and forecast along with its segments
• Country-wise Gems & Jewelry market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• United Arab Emirates
• Saudi Arabia
• South Africa

By Material

• Gold
• Silver
• Platinum
• Diamond
• Others (Gemstones, palladium, titanium, bronze, copper, brass)

By Product

• Rings
• Necklaces
• Earrings
• Bracelets
• Chains and Pendants
• Others (brooches, cufflinks, and hair accessories)

By Application

• Weddings
• Collections
• Festive Blessing
• Fashions
• Others (birthdays, graduations, or religious holidays)

By Distribution Channel

• Jewelry Stores
• Multi Branded Stores
• Standalone
• Online
The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Gems & Jewelry industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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