Saudi Arabia Carpet Market Analysis Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Saudi Arabia Carpet Market Overview

• The Saudi Arabia Carpet Market is valued at approximately USD 1.8 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for home decor, coupled with a rise in disposable income and urbanization trends, alongside expanding real estate developments, rising residential construction, and a growing emphasis on sustainable and stylish flooring solutions. The market has seen a significant shift towards luxury and designer carpets, reflecting changing consumer preferences and lifestyle choices.
• Key cities such as Riyadh, Jeddah, and Mecca dominate the carpet market due to their large populations and economic activities. Riyadh, being the capital, serves as a central hub for trade and commerce, while Jeddah's port facilitates the import of various carpet types. Mecca's religious significance also drives demand for prayer rugs and traditional carpets.
• The Local Content and Government Procurement Authority Rules, 2020 issued by the Ministry of Industry and Mineral Resources require manufacturers to achieve minimum localization thresholds of 40% local content for government contracts exceeding SAR 50 million, promoting local carpet manufacturing through mandatory domestic sourcing preferences, financial incentives via the National Industrial Development and Logistics Program, and quality certification standards aligned with SASO specifications for fiber content and fire resistance.

Saudi Arabia Carpet Market Segmentation

By Type:The carpet market in Saudi Arabia is segmented into various types, including hand-knotted carpets, machine-made carpets, tufted carpets (polypropylene and polyester), woven carpets, synthetic carpets, natural fiber carpets, and prayer rugs. Among these, machine-made carpets are gaining popularity due to their affordability and variety, while hand-knotted carpets are favored for their craftsmanship and cultural significance, with tufted carpets leading due to cost-effective production and versatility in residential and commercial applications.

By End-User:The end-user segmentation of the carpet market includes residential, commercial (hotels, resorts, offices), hospitality & tourism, religious & mosque applications, and government & public infrastructure. The residential segment is the largest, driven by increasing home ownership and renovation activities, while the commercial segment is growing due to the expansion of the hospitality sector and rising investments in tourism infrastructure.

Saudi Arabia Carpet Market Competitive Landscape

The Saudi Arabia Carpet Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al Haramain Carpets, Riyadh Velvet Factory, Ege Carpets (Saudi Operations), Al-Sorayai Group, Al-Muhaidib Group, Al-Farooq Carpets, Al-Jazira Carpets, Al-Mansour Carpets, Al-Sarh Carpets, Al-Mahmal Carpets, Al-Qassim Carpets, and Al-Nasr Carpets contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Carpet Market Industry Analysis

Growth Drivers

• Increasing Demand for Luxury Carpets:The luxury carpet segment in Saudi Arabia is experiencing significant growth, driven by a 15% increase in high-end residential projects in future. The real estate sector's expansion, particularly in urban areas, has led to a surge in demand for premium carpets. According to the Saudi Arabian General Investment Authority, the luxury home market is projected to reach SAR 55 billion in future, further fueling the demand for exquisite carpet designs that enhance interior aesthetics.
• Growth in the Real Estate Sector:The Saudi real estate sector is projected to grow by 9% in future, supported by government initiatives like Vision 2030, which aims to diversify the economy. This growth is expected to increase the demand for carpets in both residential and commercial spaces. The construction of new hotels and residential complexes, estimated at over 250 projects, will create a substantial market for carpets, as developers seek to enhance property value through quality interior finishes.
• Rising Disposable Incomes:With a projected increase in disposable income by 7% in future, Saudi consumers are more inclined to invest in luxury home furnishings, including carpets. The World Bank reports that the average household income in Saudi Arabia is expected to reach SAR 13,000 monthly, allowing families to allocate more funds towards home decor. This trend is particularly evident in urban centers, where consumers prioritize quality and aesthetics in their purchasing decisions, driving carpet sales.

Market Challenges

• Competition from Synthetic Flooring Options:The carpet market faces stiff competition from synthetic flooring alternatives, which are often more affordable and easier to maintain. In future, the synthetic flooring market is expected to grow by 11%, capturing a significant share of the flooring segment. This trend poses a challenge for traditional carpet manufacturers, as consumers increasingly opt for cost-effective and low-maintenance solutions, impacting overall carpet sales.
• Fluctuating Raw Material Prices:The carpet industry is significantly affected by the volatility of raw material prices, particularly wool and synthetic fibers. In future, wool prices are projected to rise by 13% due to supply chain disruptions and increased global demand. This fluctuation can lead to higher production costs for carpet manufacturers, potentially resulting in increased retail prices that may deter price-sensitive consumers from purchasing carpets.

Saudi Arabia Carpet Market Future Outlook

The Saudi Arabia carpet market is poised for dynamic growth, driven by increasing consumer interest in luxury and customized products. As the real estate sector continues to expand, the demand for high-quality carpets is expected to rise, particularly in urban developments. Additionally, the integration of technology in carpets and a shift towards sustainable materials will likely shape future trends, creating opportunities for innovation and differentiation in the market landscape.

Market Opportunities

• Expansion of E-commerce Platforms:The rise of e-commerce in Saudi Arabia presents a significant opportunity for carpet retailers. With online sales projected to increase by 22% in future, businesses can reach a broader audience and cater to changing consumer preferences for convenient shopping experiences. This shift allows for enhanced visibility and accessibility of diverse carpet options, driving sales growth.
• Increasing Interest in Sustainable Carpets:As environmental awareness grows, there is a rising demand for sustainable carpets made from eco-friendly materials. The market for sustainable carpets is expected to grow by 16% in future, as consumers seek products that align with their values. This trend offers manufacturers the chance to innovate and capture a niche market segment focused on sustainability and ethical production practices.