Amidst a global downturn in luxury consumption, certain nascent economies, particularly Saudi Arabia, are demonstrating remarkable strength in this sector. This trend was a central theme at the recent Vogue Business Global Summit, held at the majestic Château du Chantilly. A dedicated discussion on emerging markets shed light on the extensive investments by entities like Diriyah Company, channeling substantial resources into commercial real estate and advanced infrastructure in Saudi Arabia. Here, robust internal demand presents an appealing prospect for global investors.
Diriyah Emerges as a Global Luxury Destination
Once a historically significant settlement in Saudi Arabia, Diriyah is currently experiencing an unparalleled transformation. It is evolving into a key regional center for development, driven by substantial investments aimed at establishing it as the Middle East's foremost retail, lifestyle, and residential haven. During the esteemed panel discussion, Nermeen Nosseir, the Chief Retail Leasing Officer at Diriyah Company, unveiled comprehensive plans for this ambitious destination. Nosseir elucidated the sheer magnitude of the undertaking, stating, “Diriyah is a monumental project. To give you a sense of its scale, it rivals Geneva in size, covering 14 square kilometers compared to Geneva’s 15. It is, in essence, a new city.” However, she emphasized that this development is not a sudden emergence but a revitalization rooted in profound history: “It is not an entirely new urban center; it has existed for three centuries, serving as the initial capital before Riyadh. Consequently, culture and historical elements are intricately woven into every aspect of our endeavor. Furthermore, all design and development are inspired by the UNESCO Heritage Site, At-Turaif, which some of you may have already explored.”
Nosseir further elaborated on the core drivers of retail and luxury consumption within Saudi Arabia, attributing them to ingrained local customs. She highlighted, “We recently observed Eid al-Fitr, one of the most vibrant retail periods in the Middle East, where sales consistently demonstrated double-digit growth each season. The primary impetus for this surge is that Saudis chose to remain within the country, exhibiting loyalty to their homeland by investing in essential categories such as new attire, a customary practice during this festive occasion.” She underscored the critical importance of embedding the region’s rich cultural heritage into the grand aspirations of the development, ensuring the preservation of cultural assets. “We are actively constructing and delivering cultural assets to proudly exhibit the history, legacy, and artistic expressions of Saudi Arabia. These initiatives will be seamlessly complemented by a diverse array of luxury retail and lifestyle offerings.”
A crucial insight shared by Nosseir was the specific preferences of Saudi natives, who exhibit immense pride in their Arab identity. She noted, “They are deeply proud of their country and particularly fond of the color green, which adorns their national flag.” Yet, their standards are uncompromising, especially concerning personalization—a pivotal strategy for elevating luxury goods. “They seek opulence and desire something uniquely tailored. This extravagance translates into a preference for items crafted from rare materials, beyond typical off-the-shelf collections, such as crocodile leather. They are drawn to limited-edition ranges and appreciate bespoke details like engraving and embroidery, which truly resonate with them.”
Dolce & Gabbana has established the inaugural luxury presence in Diriyah, with an expansive 1,500-square-meter boutique featuring the brand’s first D&G cafe outside of Milan. This store has meticulously curated its inventory to align with local cultural tastes, including an exclusive collection of dresses tailored to Saudi fashion sensibilities. Nosseir also revealed plans for Raya Square, a dedicated luxury retail district poised to house prominent luxury houses in Diriyah, many of which will occupy spaces twice the size of their conventional flagship stores.
The exclusive blend of brands extends to the hospitality sector, showcasing both the caliber of luxury the destination aims to attract and the elevated expectations of its patrons. Nosseir painted a vivid picture: “When you are invited by a Saudi for lunch or dinner, and they typically host grand gatherings, you are often greeted with dates and coffee. Subsequently, you are escorted to a living room for tea and treats, followed by a move to the dining room where a multi-course, Michelin-star-level culinary experience awaits. This embodies their profound hospitality, a sentiment we strive to reflect in Diriyah. Each destination will therefore boast a diverse selection of hotels. Diriyah Square, for instance, will feature boutique hotels such as Baccarat, Four Seasons, and Armani. Given the growing importance of luxury wellness today, we will also host resorts like Aman and Six Senses. All these establishments are meticulously integrated with culture and lifestyle, as Saudis anticipate exceptional hospitality at every touchpoint.” Crucially, Nosseir concluded that Saudi Arabia holds substantial potential for growth, but success for brands and businesses will hinge on their willingness to comprehend the profound influence of culture and the distinct requirements of the local consumer.
This initiative represents a visionary endeavor to merge historical roots with modern luxury, creating a vibrant destination that caters to sophisticated tastes while honoring a rich cultural legacy. By focusing on personalization, cultural integration, and unparalleled hospitality, Diriyah is poised to set a new benchmark in the global luxury market and offer an enriching experience for both residents and visitors.