The Kingdom of Saudi Arabia is the biggest market in the region.

Estimated size of the gold market in Saudi Arabia is 11 billion Saudi Riyals, ($ 2.9 billion), around 200 tones of consumption per year.

Gold consumption in the GCC is estimated at 350 tones per year, while consumption in the Arab world is around 700 tones per annum. Worldwide consumption is estimated at around 4,000 tones per year.

Rise in demand for gold in Saudi Arabia more than doubled the worldwide levels. While demand for gold in 2005 rose worldwide by 5 %, in Saudi Arabia demand increased by 13 percent, in terms of retail investment along with gold jewelry.

It is expected that the demand would continue on its current upward trend through 2007, especially in the context of the biggest budget ever announced by the Kingdom.

The expected increase in demand is due to the increase of marketing activities mostly by gold jewelry manufactures in the Kingdom and across the region.

The gold market in Saudi Arabia is healthy and moving upward, rated good to excellent.

Gold imports are boosting strongly every year and jewelry shipments to the Kingdom are always increasing.

Saudi Arabias GDP growth is up 25% and inflation is 1%. Due to higher oil prices for several years out, the volume of gold purchases are expected to rise.

The Kingdom produces six tones of gold jewellery per year.

The Kingdom produces 6 tones every year.

Saudi Arabia has more than 6,000 retail gold and jewelry stores, employing more than 21,000 workers, and has around 375 regulated factories.

The strong economy conditions in Saudi Arabia were the main factors behind the increase in demand. This increase is also attributed to high oil prices and the high spending capability.

The Eastern Province

The Eastern Province serves as the backbone of the Saudi economy, being one of the world's largest reservoirs of crude oil and gas. These resources have provided the stimulus for a major breakthrough in non-oil industrial development. The Eastern Province has attracted a large amount of foreign capital and technology. The Saudi government's liberal economic policies and incentives for the private sector have further encouraged the growth of the Province. There are several reasons why one should focus on this wealthy Eastern Province: strong and dynamic economy, unique and strategic location, social and political stability, modern and developed infrastructure, attractive investment climate, expanding market, vast natural resources and raw material, and growing opportunities for foreign investment.