India and Saudi Arabia's burgeoning trade relationship has a promising future, particularly in the gems and jewelry sector. With bilateral trade reaching a record $42 billion in the fiscal year 2024-25, India has become Saudi Arabia's second-largest trading partner, while Saudi Arabia is India's fifth-largest. This expanding economic partnership presents significant opportunities for both nations, especially within the gems and jewelry market.
The Kingdom of Saudi Arabia represents a key growth destination for Indian gem and jewelry exporters. In 2024-25, exports to Saudi Arabia rose 45% to $151.5 million, with exports of studded jewelry alone jumping 55%. Projections estimate that the Saudi Arabian jewelry market will nearly double to $8.34 billion by 2030, marking it as a lucrative market for international trade. The average annual spending on jewelry in the Kingdom is around $320, positioning Saudi Arabia at the forefront of global jewelry consumption.
To further strengthen trade ties and explore opportunities in the Saudi market, the Gem & Jewellery Export Promotion Council of India (GJEPC), in association with the Consulate General of India in Jeddah, the Embassy of India in Riyadh, and India's Ministry of Commerce & Industry, recently launched the Saudi Arabia Jewellery Exposition (SAJEX) 2025. This landmark event, held at the Jeddah Superdome from September 11-13, aims to deepen India-Saudi trade ties while opening new channels across the GCC and global markets.
SAJEX 2025 hosted over 200 exhibitors across 250 booths and attracted more than 2,000 business visitors and international buyers. Exhibits ranged from diamond and colored gemstone jewelry to bridal collections, lab-grown diamonds, gold pieces, and cutting-edge jewelry technology. The event received strong institutional backing from the Ministry of Investment of Saudi Arabia and the Jeddah and Makkah Chambers of Commerce.
India holds global leadership credentials in the gems and jewelry sector, exporting $32 billion worth of gems and jewelry in 2024-25. The country processes over one billion diamonds annually, accounting for 65 percent of value and 92 percent of volume in the global diamond trade. It also ranks among the top exporters of gold, silver, colored gemstones, and lab-grown diamonds. The sector has experienced robust growth, with foreign direct investment rising 315 percent in FY 2024-25, contributing to India's overall $50 billion FDI inflow.
However, recent trade developments have prompted India to seek alternative markets for its gems and jewelry exports. The US, which accounts for approximately 30% of India's annual gems and jewelry exports, has imposed steep tariffs on Indian goods, making exports to the US nearly impossible. In response, India is strategically pivoting towards Saudi Arabia, a rapidly growing market in Asia, to mitigate the impact of US tariffs and seize growth opportunities.
Dr. Suhel Ajaz Khan, Indian Ambassador to Saudi Arabia, emphasized the potential for increased collaboration between India and Saudi Arabia in the jewelry sector. He stated that the Kingdom is a very large market for gems and jewelry and that SAJEX will help connect India's jewelers and designers with Saudi buyers, enhancing trade and joint collaborations. Kirit Bhansali, chairman of GJEPC, echoed this sentiment, noting that the jewelry market in Saudi Arabia is expanding at a remarkable pace and is estimated to reach $8.34 billion by 2030. He also expressed GJEPC's hope to develop SAJEX into the gem and jewelry trading hub of the Middle East.
