Despite serious economic disruption at the turn of 2020, the global gems and jewellery market is forecast to grow at 5.5% CAGR by 2025*. Though shy of pre-pandemic projections at 8% CAGR** this outlook represents a significant hike from approximately 230 billion U.S. dollars in 2020 to roughly 292 billion dollars by 2025***.
* (Forecast made post-pandemic in 2020 by Mordor Intelligence.)
** (Grand View Research, June 2019)
*** (Satista, Feb 2021)
In the Gulf region, jewellery trade benefitted from a re-bound in the second half of 2020 spurred by local customers, especially in Saudi Arabia with the return of weddings, investment buying and the launch of new collections. Jewellery was the only luxury category to achieve value growth in 2020. [Bain & Company]
Saudi Arabia, the Arab world’s largest economy, will remain the biggest driver of growth for the regional luxury industry in the coming years due to population growth, new tastes and preferences, and the emergence of new luxury consumers, such as affluent working women. [Bain & Company]
Jewellery Trade in Dubai
Dubai’s exceptional stature in the global jewellery industry is perhaps best represented by two unique aspects in its history – its pearling traditions and its world-renowned Gold Souk (marketplace or bazaar). Today, Dubai is also known as an international diamond trading hub, with trade rising more than six folds from AED 13.2 billion (US$3.6 billion) in 2003 to AED 84 billion (US$23 billion) in 2019, according to Dubai Multi Commodities Centre (DMCC).
During 2020, Dubai’s non-oil trade (exports and imports) showed resilience despite the pandemic. Gold, diamonds and jewellery continued to top the list of non-oil trade commodities.