Saudis Purchased More Than 360 Tonnes of Gold Over Five Years as Investment Demand Gains Ground Against Jewelry

 Marsad Al Dahab has revealed that Saudi Arabia's gold market recorded one of the strongest periods of gold demand in the Middle East over the past five years, with total purchases reaching approximately 360.3 tonnes between 2021 and 2025. The latest data from the World Gold Council indicates a gradual but significant shift in consumer behavior, with growing demand for gold bars and coins as investment assets alongside the Kingdom's traditionally strong jewelry market.

According to Marsad Al Dahab, Saudi consumers purchased approximately 258 tonnes of gold jewelry and 102.3 tonnes of gold bars and coins during the five-year period, bringing total gold demand to 360.3 tonnes. The figures reinforce Saudi Arabia's position as one of the region's largest gold markets for both jewelry consumption and investment.

Jewelry accounted for roughly 71.6% of total demand over the period, while investment bars and coins represented 28.4%, highlighting the increasing role of investment gold within the Saudi market amid global economic uncertainty and record-high bullion prices.

The annual data also illustrates the evolution of Saudi gold demand. Total purchases reached 85.2 tonnes in 2021, including 59.5 tonnes of jewelry and 25.7 tonnes of bars and coins. Demand eased to 80.6 tonnes in 2022, consisting of 56.3 tonnes of jewelry and 24.3 tonnes of investment products. In 2023, total demand declined to 68.1 tonnes, including 48.9 tonnes of jewelry and 19.2 tonnes of bars and coins.

The market continued to normalize in 2024, when total demand reached 64.6 tonnes, comprising 49.1 tonnes of jewelry and 15.5 tonnes of investment products. In 2025, total purchases stood at 61.8 tonnes, with 44.1 tonnes of jewelry and 17.6 tonnes of bars and coins.

Marsad Al Dahab noted that the decline in overall gold purchases should not be interpreted as weakening consumer interest. Instead, it reflects the impact of record-high global gold prices, which encouraged buyers to purchase smaller quantities while maintaining steady demand for investment products. This trend reinforces gold's growing role as a long-term store of value rather than merely a luxury commodity.

The trend became even more evident during the first quarter of 2026, when Saudi gold demand totaled 17.8 tonnes, including 12.7 tonnes of jewelry and 5.1 tonnes of gold bars and coins. Investment products accounted for approximately 28.7% of total demand during the quarter.

Most notably, jewelry demand declined by 13.1% year-on-year in the first quarter, while demand for gold bars and coins increased by 14.8%, providing one of the clearest indications that Saudi consumers are increasingly viewing gold as a savings and investment asset rather than solely as jewelry.

This structural shift reflects a more sophisticated investment culture among Saudi consumers, who are increasingly monitoring interest rates, U.S. dollar movements and geopolitical developments when making gold purchasing decisions, treating the precious metal as a financial asset capable of preserving purchasing power.

Per-capita gold consumption data supports the same conclusion. Average annual gold consumption per Saudi resident stood at 2.77 grams in 2021, falling to 2.51 grams in 2022, 2.02 grams in 2023, 1.83 grams in 2024, and 1.71 grams in 2025. Over the past decade, average annual per-capita gold consumption has remained around 2.15 grams.

Historical figures show per-capita consumption of 2.27 grams in 2016, 2.30 grams in 2017, 2.29 grams in 2018, 2.24 grams in 2019, before dropping to 1.52 grams in 2020 during the COVID-19 pandemic, then rebounding sharply in 2021 before gradually easing as global gold prices climbed to record levels.

Overall, Saudi consumers purchased approximately 686 tonnes of gold between 2016 and 2025, including nearly 500 tonnes of jewelry and around 186 tonnes of gold bars and coins, underscoring the depth and resilience of the Kingdom's gold market and cementing Saudi Arabia's position among the Middle East's largest gold-consuming nations.

The report concludes that Saudi Arabia's gold market is no longer driven solely by jewelry demand. Instead, investment demand is steadily gaining momentum, supported by rising household wealth, a growing retail investor base and increasing awareness of gold's role as a safe-haven asset amid persistent inflationary pressures and ongoing volatility in global financial markets.

Looking ahead, Marsad Al Dahab expects investment bars and coins to account for an even larger share of total gold demand if bullion prices remain elevated, potentially reshaping the structure of Saudi Arabia's gold market and strengthening the Kingdom's position as one of the Middle East's leading investment gold markets, in addition to being one of its largest jewelry markets.