Despite soaring global gold prices and subdued demand in many parts of the world, Saudi consumers have displayed a remarkable appetite for gold jewellery, purchasing more of the precious metal in the first quarter of 2025 than ever before. According to the latest figures released by the World Gold Council, shoppers in the Kingdom acquired a staggering 11.5 tonnes of gold jewellery between January and March—marking a 35% surge from the 8.5 tonnes recorded in the same period of 2024.
This sharp rise in demand comes at a time when global jewellery markets have shown significant weakness due to unprecedented gold price hikes. At its peak last week, gold reached a jaw-dropping $3,500 per ounce before settling around $3,313, a level still far higher than previous years. In contrast to Saudi Arabia’s bullish trend, consumers in the neighbouring United Arab Emirates showed restraint, purchasing only 7.9 tonnes in Q1 2025, a decline from the 9.6 tonnes they bought during the same period last year.
Economic analysts attribute Saudi Arabia’s resilient demand to a combination of robust domestic growth and high consumer confidence. Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council, noted that strong economic indicators in the Kingdom have directly translated into positive consumer sentiment. “That confidence has a ripple effect, especially in discretionary spending sectors like gold jewellery,” Naylor explained. “While other countries are tightening their belts, Saudi shoppers are still spending.”
Notably, Saudi Arabia’s gold market is largely driven by local consumption rather than international tourism, unlike the UAE, where tourist spending plays a key role in jewellery sales. Despite facing a 15% value-added tax on gold purchases—along with making charges—Saudi buyers remain undeterred, reinforcing the idea that cultural and economic factors are heavily influencing their buying behaviour.
Neighbouring Kuwait, which shares similar market conditions, did not mirror this trend. Instead, it witnessed a decline in gold jewellery demand, reinforcing Saudi Arabia’s outlier status in the region.
Globally, gold jewellery demand suffered a steep decline in the first quarter of 2025. The World Gold Council reported a 21% drop in total consumption, with buyers worldwide acquiring 380.3 tonnes compared to 480.1 tonnes in Q1 2024. China, traditionally a powerhouse in gold consumption, registered a notable slump—purchasing only 125.3 tonnes versus 184.4 tonnes a year earlier. India also recorded a drop, with demand falling to 71.4 tonnes from 95.5 tonnes in the same quarter of the previous year.
“The historic spike in gold prices severely impacted affordability for consumers across global markets,” the Council noted in its latest report. However, despite this volume decline, the overall value of jewellery bought globally rose by 9% to $35 billion, suggesting that while buyers purchased less, they were still willing to pay more. Interestingly, value growth was reported in nearly every market except China.
In summary, while the rest of the world wrestles with the cost implications of rising gold prices, Saudi Arabia’s market stands resilient. The Kingdom’s domestic strength, cultural affinity for gold, and a population willing to stretch their budgets appear to have created a golden opportunity—literally and figuratively—in the global jewellery trade.
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