Saudi Arabia Gems and Jewelry Industry Set for 186 Million Dollars Investment Boom

Saudi Arabia Jewellery News: Saudi Arabia’s gemstones and jewelry sector is entering a decisive growth phase as fresh capital, industrial expansion, and skills development converge under the Kingdom’s broader economic diversification agenda. Industry leaders now estimate that the sector will attract investments worth SR700 million, or about $186 million, over the next five years, signaling rising confidence in domestic manufacturing and value-added luxury production.

The investment drive is being led by Al-Safa Group, one of the country’s prominent names in precious metals and jewelry. Ali Batarfi, vice chairman of the National Committee for Precious Metals at the Makkah Chamber of Commerce and chief executive of the group, revealed that the planned investments will focus on building a vertically integrated ecosystem spanning refining, manufacturing, education, and retail. This Saudi Arabia Jewellery News report highlights a strategic push to localize expertise rather than depend on imported craftsmanship.

According to industry executives, the blueprint includes the establishment of several specialized factories and training institutes in Jeddah starting from 2026. These facilities will be supported by a gold refinery and advanced jewelry manufacturing units equipped with modern design and precision technologies. An education and research center is also planned, aimed at encouraging innovation in gemstone cutting, metal treatment, and contemporary jewelry design suited to regional and global tastes.

Beyond manufacturing, the expansion has a strong retail and distribution component. Abdulkarim Kolthody, General Manager of Al-Safa Group, explained that the initiative seeks to significantly widen the company’s wholesale and retail footprint across major Saudi cities. This includes strengthening supply chains and introducing standardized quality benchmarks to enhance consumer trust and international competitiveness.

Phased Expansion Across Key Regions

Implementation will take place in carefully planned phases, beginning in Jeddah before extending to Riyadh and the Eastern Province. Over time, the company plans to open at least 15 additional retail branches across other regions, ensuring broader market reach and closer access to customers. This phased approach is expected to reduce operational risks while allowing talent pipelines and infrastructure to mature steadily.

Training The Next Generation of Saudi Artisans

A cornerstone of the initiative is human capital development. The proposed training institute in Jeddah will focus on refining, production, and retail management skills, helping to cultivate a new generation of Saudi professionals. Analysts note that this aligns closely with Vision 2030 goals, particularly job creation, localization of high-value industries, and the promotion of cultural craftsmanship as an economic asset.

Taken together, these developments indicate that Saudi Arabia’s gemstones and jewelry sector is shifting from a trade-driven market to a production-led industry. With rising domestic demand, growing tourism, and an emphasis on locally made luxury goods, the sector appears well positioned to become a regional hub for precious metals and fine jewelry, contributing meaningfully to non-oil economic growth and long-term industrial resilience.

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