In Saudi Arabia, gold is a financial staple woven deep into the fabric of family life and tradition. While the rest of the world saw gold demand dip earlier this year, Saudis seemed unfazed, continuing to buy the precious metal in substantial quantities.
For many families, gold acts as a savings account, providing a stable form of wealth that can easily be passed down through generations. This tradition of gifting gold during weddings and other significant life events ensures that financial stability is maintained within families.
The buying behaviors in the region are varied, reflecting the country’s diversity. In the northern parts of the kingdom, about 70% of gold purchasers invest in gold strictly as a financial asset. Meanwhile, in the south, sentimentality plays a larger role, with many buying gold as much for tradition as for investment.
The Saudi penchant for gold is evident despite soaring prices. In the first quarter of 2025 alone, demand for gold jewelry in Saudi Arabia surged by 35% compared to the previous year, bucking the global trend of a 21% drop in demand. Such resilience comes at a time when gold prices have climbed over $3,500 per ounce, reflecting a 34% rise that hasn’t deterred these dedicated buyers.
More Saudis are turning to gold bars and coins, viewing them as safe, investment-grade assets. This shift is mirrored by a 15% jump in demand for investment-grade gold, as families look to protect their wealth against the unpredictability of inflation and economic swings.
Young Saudi investors are not just carrying forward old traditions but are also bringing modern twists to their strategies. They are participating in digital gold platforms, exploring fractional gold ownership, and considering exchange-traded funds (ETFs).
Outside Saudi Arabia, expats in the UAE have a slightly different relationship with gold. For many Indian expatriates, for instance, gold acts as a financial bridge between their UAE income and their native India. As currency values fluctuate, gold becomes a strategic purchase that can be financially advantageous when the timing is right, such as during festivals and weddings.
