Editor’s Note
This article provides a concise overview of the Middle East and Africa jewelry market, highlighting its current valuation and projected growth to 2032. It also touches on key regional cultural drivers, such as the demand for diamonds and the status of gold as a symbol of prosperity.
The Middle East and Africa jewelry market was valued at USD 9.55 billion in 2024. The market is projected to grow from USD 9.75 billion in 2025 to USD 11.75 billion by 2032, exhibiting a CAGR of 2.71% during the forecast period.
Precious ornaments are considered fashion-forward in the Middle East region. Consequently, diamonds and gemstones are in high demand. Gold is viewed as a sign of prosperity and wealth in Middle Eastern culture, a key factor driving product demand in the region. Population growth, infrastructure development alongside increasing tourism, rising spending power of tourists, and shifting consumer preferences coupled with demand for premium, high-end, and designer products are propelling the growth of the Middle East and Africa jewelry market.
Increasing e-commerce trends among consumers are driving product demand.
The e-commerce industry in Middle East and African countries is rapidly evolving. At a macro level, growth in tech-savvy population, online penetration, and rising demand for luxury products are fostering market growth. E-commerce platforms are gaining momentum across Saudi Arabia, the UAE, and Bahrain as consumers shifted from physical stores to online shopping during the pandemic. Furthermore, the availability of multiple product offerings and price comparisons on online shopping sites has significantly increased the number of online shoppers, making it convenient for retailers as it involves zero spending on physical outlets or stores.
Leading brands in the Middle East region such as Hand Diamond & Jewelry LLC, L’Azurde, Safa Group, and Chanel increased their online retail platforms in 2021 to expand their share in the Middle East and Africa jewelry market.
Rising consumer spending and population growth are fueling market growth.
Global market growth is attributed to increasing disposable income of the population, and changing lifestyles of individuals in Arab countries are set to drive market growth. Improving living standards of the middle-class population and rising spending power fuel market growth. The growing female workforce in the Middle East region, along with rising awareness about modern products and premium-class jewelry, will further ignite market growth.
Furthermore, the population in the Middle East and Africa is gradually leaning towards sophisticated designer, premium products. Luxury brand manufacturers such as L’Azurde and Ghassan are developing contemporary designer products, further boosting market growth.
Implementation of Value-Added Tax is limiting market growth.
On January 1, 2018, Middle Eastern governments announced that gold, silver, and platinum jewelry in the UAE would be subject to a 5% value-added tax (VAT). The tax is applied to the piece of jewelry rather than charging a fee, making the product more expensive. The wholesale sector, which relies on product sales, is adversely affected by rising gold prices and increased VAT rates, putting pressure on company business or profits in the short term.
On January 1, 2022, Bahrain’s standard VAT rate increased from 5% to 10%, making Bahrain the second GCC country to raise its VAT rate from the initially agreed 5% under the GCC VAT Framework Agreement. The VAT rate is estimated to increase government revenue by 1.5% to 2% of GDP. Therefore, changing taxation policies on gold may lead to higher gold prices, restraining market growth.
By Product: The market is segmented into necklaces, earrings, rings, bracelets, and others. The ring segment holds a significant market share due to rising popularity among women and high demand for traditional and ethnic products. The ring segment is expected to grow substantially throughout the forecast period, driven by increasing popularity and preference for corporate dressing rings, and the rising trend of personalized rings such as engagement rings, promise rings, etc., in the Middle East and Africa.
By Material: Based on material, the market is segmented into gold, diamond, platinum, and others. The gold segment holds a significant market size. Gold has been used for centuries to make ornaments and has become an integral part of lifestyle, culture, and occasions. Rising demand for gold ornaments is increasing due to growing consumer spending on wedding and celebration seasons.
The diamond segment is expected to grow significantly during the forecast period. Diamonds are considered a woman’s pride and are more attractive due to their ability to reflect light and brilliance. Demand for diamonds is increasing in Middle East and African countries due to the rising popularity of mixed cuts, rose cuts, and briolette diamonds, which offer a 360-degree view of the diamond.
By End-user: Based on end-user, the market is divided into men and women. The women’s segment holds a significant market share due to the wide availability of products and interest in products among women. Rising preference for ornament enhancement among women and wide product availability are fostering market growth. Manufacturers are launching new unique products specifically for women, driven by increasing demand for ethnic looks and simple modern designs for working women, alongside growing demand for vintage styles.
