Gems and jewellery industry eyes manifold growth in exports to Saudi Arabia

With the imposition of 50% tariffs by the US on exports from India, exporters of gems and jewellery are increasingly expanding their presence in Europe and West Asia.

To promote exports in the latter, the Consulate General of India in Jeddah, in collaboration with the Gem & Jewellery Export Promotion Council of India (GJEPC), organised the Saudi Arabia Jewellery Exposition (SAJEX) 2025 from 11–13 September. Stakeholders from both India and Saudi Arabia participated in the international B2B exhibition held at the Jeddah Superdome.

India is Saudi Arabia’s second-largest trading partner, while Saudi Arabia is India’s fifth, with bilateral trade clocking $42 billion in FY25. India’s gem and jewellery exports to Saudi Arabia grew 45% in FY25 to $151.5 million, led by a 55% jump in studded gold jewellery.

According to the GJEPC, Saudi Arabia’s jewellery market is projected to nearly double to $8.34 billion by 2030. SAJEX offered a platform for Indian exporters to showcase their craftsmanship, designs, and innovations tailored for Saudi consumers.

Colin Shah of the GJEPC told CNBC-TV18, “Saudi Arabia is a large market and could be potentially a billion-dollar export market in the long term.” India’s gem and jewellery exports to Saudi Arabia rose 45% in FY25 to $151.5 million, led by a sharp rise in studded gold jewellery. With a 3.2% share of global exports of gems and jewellery, India ranked 8th in 2024 when global exports in the sector totalled $945.24 billion.

Industry representatives emphasised the importance of diversification. Priyanshu Shah, Director at Asian Star Company Limited, said that while the US remains vital for the industry, Europe is showing strong demand for design-led, sustainable jewellery. After participating in the exposition, he said West Asia continues to perform well, with some countries preferring artisanal statement pieces.

Nikhil Parekh, Partner at Kolkata-based Hasmukh Parekh Jewellers, echoed this sentiment, pointing out that Middle Eastern markets are showing healthy growth, with demand for Indian designs — particularly Bengal craftsmanship — continuing to rise globally.

Terming the US tariffs on Indian exports as “opposed to the spirit of fair global trade,” Parekh noted that the FTA with the UAE last year and the recent one with the UK are already yielding encouraging results for the industry. He called for more such agreements with West Asian countries like Saudi Arabia to diversify India’s market and strengthen its position in the global jewellery trade.

Saudi Arabia is the largest economy among the six member countries of the Gulf Cooperation Council (GCC). Among GCC members, India already has an FTA with the UAE, is about to finalise one with Oman in the coming weeks, and expects to conclude terms of reference for an FTA with Qatar in early October.

Earlier, sources told CNBC-TV18 that a Bilateral Investment Treaty (BIT) is separately under negotiation with Saudi Arabia, alongside FTA talks with the GCC, with the possibility of separate FTAs with individual GCC members also under consideration. The other GCC members are Bahrain and Kuwait.

The exposition featured over 200 leading exhibitors across 250-plus booths, representing key jewellery markets including Saudi Arabia, India, and the UAE. Displays highlighted craftsmanship and design across categories — diamond and coloured gemstone jewellery, gold (18k, 21k, 22k), lab-grown diamond creations, bridal collections, gifting ranges, and the latest innovations in jewellery technology.

The event concluded with the World Jewellery Investment Forum, which brought together government representatives, global industry leaders, jewellers, designers, manufacturers, and professionals from around the world.

Organised with the support of the Ministry of Investment of Saudi Arabia (MISA) and the Jeddah and Makkah Chambers of Commerce, the forum aimed to strengthen bilateral trade, foster new investments, and position Saudi Arabia as a vibrant hub in the global jewellery value chain.