Saudi Arabia Leads Middle East in Gold Jewelry Sales Amid Sharper Regional Slump

RIYADH——Saudi Arabia retained its position as the Middle East’s largest gold jewelry market during the third quarter of 2026, even as regional demand plummeted, according to the World Gold Council.

According to the council’s latest Gold Demand Trends report, jewellery purchases in Saudi Arabia decreased by 12 percent year-on-year to 8.2 tonnes, down from 9.3 tonnes recorded in Q3 2025. Middle East demand overall slid 22 percent to 26.2 tonnes from 33.4 tonnes a year earlier.

The regional decline is primarily driven by elevated gold prices, economic uncertainty, and a reduction in consumer disposable income, which has heavily constrained discretionary spending on jewellery. While Saudi Arabia has not been entirely insulated from these pressures, its comparatively smaller annual decline has solidified its standing as the region’s leading jewellery market, demonstrating notable resilience against neighbouring markets.

“High gold prices, pressure on household purchasing power, and continuing geopolitical uncertainty—notably reflected in an anemic tourist sector—combined to constrain discretionary purchases across the region,” the report stated.

Regional Peers: The United Arab Emirates experienced one of the steepest declines, with jewellery demand falling 29 percent year-on-year to 4.5 tonnes from 6.4 tonnes. Kuwait also saw a similar 29 percent drop, with demand reaching 1.7 tonnes. Other Middle Eastern markets recorded an even steeper 43 percent decline to 2.5 tonnes. In contrast, neighbouring Turkiye remained relatively resilient, with demand slipping only 4 percent to 7 tonnes.

Cushioning Effect: “The gap between those two figures is the story: Saudi Arabia declined by roughly half as much as the region overall,” Aseel Al-Aranki, head of financial market analysis at CG Invest, told Arab News. She noted that the Kingdom’s share of regional demand rose to approximately 31 percent, from 28 percent, and accounted for roughly 1 tonne of the total regional drop. “The relative stability of the largest market therefore helped cushion the overall regional figure,” she said.

Quarterly Trend: Al-Aranki highlighted that Saudi demand fell 20 percent in Q3 from 10.3 tonnes in Q2, following a decrease from 12.7 tonnes in Q1. “The relative resilience is therefore a year-on-year story and does not indicate that the market is recovering,” she noted.

Investment Trend: Saudi bar and coin demand fell 9 percent to 4.1 tonnes amid profit-taking as investors awaited September’s interest rate hike. Overall regional investment demand declined 24 percent. At the time, Andrew Naylor, the council’s head of Middle East and public policy, told Arab News the Kingdom was poised to outperform regional peers, supported by this shift toward investment.

Global Picture: Worldwide, jewellery consumption fell 17 percent to 313 tonnes, marking the weakest quarter since record-keeping began in 2000 and the 13th consecutive quarterly decline. However, value rose 2 percent to $43 billion as gold averaged $4,262 per ounce, up 23 percent. The council projects global jewelry demand will continue to drop year-on-year in Q4, as elevated prices persistently weigh on volumes.

Al-Aranki noted that a meaningful recovery likely depends on prices easing or consumers fully adjusting their behaviour. “Until then, a pattern of smaller purchases and lower tonnage, even where spending holds up, is the most likely scenario,” she said.

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