Updated Oct 17, 2022 01:31

Gold Market in Saudi Arabia

Market Overview
Please note: Annual data for 2022 are preliminary and subject to revision
The Saudi gold market contracted sharply to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, showed prominent growth. Gold consumption peaked at $ in 2015; however, from 2016 to , consumption remained at a lower figure.

In value terms, gold production fell remarkably to $ in estimated in export price. Overall, production, however, showed strong growth. The pace of growth was the most pronounced in 2012 when the production volume increased by % against the previous year. Over the period under review, production attained the maximum level at $ in , and then dropped remarkably in the following year.


Consumption
Please note: Annual data for 2022 are preliminary and subject to revision
In , consumption of gold in Saudi Arabia rose notably to tons, picking up by % against the previous year. Overall, consumption enjoyed a moderate increase. Over the period under review, consumption hit record highs at tons in 2015; however, from 2016 to , consumption remained at a lower figure.

The revenue of the gold market in Saudi Arabia expanded notably to $ in , with an increase of % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption enjoyed strong growth. Over the period under review, the market attained the peak level at $ in 2015; however, from 2016 to , consumption failed to regain momentum.


Market Forecast
Please note: Annual data for 2022 are preliminary and subject to revision
Driven by increasing demand for gold in Saudi Arabia, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Please note: Annual data for 2022 are preliminary and subject to revision
Gold market in Saudi Arabia remained dependent on supplies from foreign countries. In , the share of imports in total consumption was % in value terms and % in physical terms. Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Saudi Arabia domestic supply is expected to continue its growth. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Please note: Annual data for 2022 are preliminary and subject to revision
Saudi Arabia remains a net importer of gold; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.