Saudi Arabia Floor Covering Market Size & Share Analysis

Saudi Arabia Floor Covering Market Trends and Insights

Drivers Impact Analysis

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Driver (~) % Impact on CAGR Forecast Geographic Relevance Impact Timeline Vision Megaproject Pipeline Boosting New‐Build Flooring Demand +2.1% National, with concentration in Riyadh, Jeddah, and NEOM region Long term (≥ 4 years) Growing Premium and Luxury Residential Renovation in Riyadh and Jeddah +1.3% Central Province, Western Province Medium term (2-4 years) Tourism and Hospitality Expansion (Red Sea, Diriyah Gate) Driving Hotel Flooring Upgrades +1.6% Western Province, Northern Province Medium term (2-4 years) Preference for Soft Floor Coverings in Majlis and Prayer Areas Fueling Carpet Sales +0.8% National Short term (≤ 2 years) Shift Toward Green and Low-VOC Vinyl Tiles Under SASO Environment Standards +0.9% National, with early adoption in Central Province Medium term (2-4 years) Rapid Growth of Modular Offices Accelerating Demand for Raised-Access Flooring +0.7% Central Province, Eastern Province Short term (≤ 2 years)

Source: Mordor Intelligence

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Vision Megaproject Pipeline Boosting New-Build Flooring Demand

Saudi construction awards totaled SAR 672 billion from -, with 68% tied to just 15 flagship projects. New Murabba, Diriyah Gate, and King Salman Park alone require multi-format premium flooring across commercial, residential, and civic blocks. A SAR 43 billion public housing plan covering 240,000 units further deepens volume visibility. International EPCs are partnering with local installers to overcome capacity bottlenecks, and lead times for ceramic tile supply have shortened from 14 to 8 weeks as domestic kilns add shifts. Flooring bidders that can certify SASO low-VOC compliance gain preferential scoring in state tenders [1]Source: Ministry of Housing, “Quarterly Housing Program Update,” housing.gov.sa.

Growing Premium and Luxury Residential Renovation in Riyadh and Jeddah

Legal reforms expected to widen foreign property ownership are spurring developers to pre-specify imported hardwood and patterned marble for penthouses and branded villas. Mortgage refinancing by the Saudi Real Estate Refinance Company reached SAR 20 billion, injecting liquidity into home-upgrade budgets. In established Riyadh districts, renovation spending per household rose 9% in as owners replaced basic ceramic with wide-plank LVT featuring integrated acoustic backing. Showroom footfall for engineered wood has doubled year-on-year, signaling a shift toward aspirational finishes despite climate constraints [2]Source: Saudi Real Estate Refinance Company, “Mortgage Portfolio Half-Year Review,” sreco.sa.

Tourism and Hospitality Expansion Driving Hotel Flooring Upgrades

The Red Sea Project’s first 24 resorts opening by end- require 1.6 million m² of high-traffic carpet and stone composite decking. Nationwide, 40,742 hotel rooms are under construction, with operators specifying stain-resistant carpet tiles for guest areas and large-format porcelain for lobbies to cut maintenance cycles. Local laminate lines are adding antimicrobial surfaces to meet international chain protocols. Procurement teams are demanding 30-year lifecycle cost models as part of tender evaluation, elevating suppliers who offer full maintenance kits and on-site training.

Preference for Soft Floor Coverings in Majlis and Prayer Areas Fueling Carpet Sales

Majlis culture sustains a resilient demand baseline for tufted and woven carpets. Mosque renovation budgets allocated by the Ministry of Islamic Affairs reached SAR 1.4 billion in , with 60% earmarked for carpet replacement. Domestic mills have shifted 18% of output to recycled PET yarns that meet SASO’s emerging circularity targets. Retailers in Jeddah report a 22% uptick in premium prayer rugs featuring memory-foam cores for added comfort during extended worship [3]Source: Ministry of Islamic Affairs, “Mosque Renovation Plan ,” moia.gov.sa.

Restraints Impact Analysis

Restraint (~) % Impact on CAGR Forecast Geographic Relevance Impact Timeline Oil-Revenue Cyclicality Impacting Private Construction Spend -0.9% National Medium term (2-4 years) Harsh Desert Climate Shortening Product Lifecycles and Increasing Maintenance Costs -0.7% National, with higher impact in Eastern and Southern Provinces Long term (≥ 4 years) 12%–20% Import Tariffs Raising End-User Prices for Wood and Luxury Vinyl -0.6% National Short term (≤ 2 years) Fragmented Installer Base Causing Quality-Execution Gaps in Large Projects -0.4% National, with concentration in high-growth regions Medium term (2-4 years)

Source: Mordor Intelligence

Oil-Revenue Cyclicality Impacting Private Construction Spend

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Although government megaprojects enjoy ring-fenced budgets, private residential and retail developers recalibrate procurement when Brent prices dip below USD 75/bbl. Flooring distributors saw a 12% sales contraction during the Q2 oil price soft patch as projects deferred interior finishes. Cash-flow uncertainty prompts mid-market buyers to downgrade from oak to SPC (stone-plastic composite) planks to save 18% on installed cost, compressing supplier margins.

Harsh Desert Climate Shortening Product Lifecycles

Ambient temperatures exceeding 45 °C and abrasive sand infiltration can reduce untreated wood service life by 30-40%. Hospitals in Dammam report doubling their annual maintenance spend on vinyl sheet seams due to thermal expansion. Manufacturers are responding with ceramic glazes engineered for 10X UV resistance and polymer cores infused with nano-ceramic fillers that cut thermal expansion by 22%. SASO’s climate durability testing protocol, set to become mandatory in , is shaping product design roadmaps.

Segment Analysis

By Product Type: Ceramic Dominance, LVT Disruption

Ceramic and porcelain tiles generated 56.75% of the Saudi Arabia floor covering market in . Their high-density shields against sand abrasion provide passive cooling, making them the default for public buildings in Riyadh. Saudi Ceramic Company’s expanded kiln in Dammam now outputs 36 million m² annually, reinforcing local supply reliability. Luxury vinyl tiles are tracking a 12.56% CAGR that positions them as the standout challenger through . Design-printed wear layers allow marble visuals at one-third the installed cost, widening appeal among mid-income homeowners. Innovations such as click-lock SPC cores with sound-abating pads shorten installation cycles by 40%, a compelling proposition for hotel refurbishments on compressed schedules.

Domestic producers are integrating solution-dyed nylon to improve fade resistance, a response to customer complaints of color shift under the desert sun. Non-resilient natural stone and solid wood corners the ultra-luxury niche but face 12-20% import duties and moisture management challenges. Rubber and homogeneous vinyl sheets dominate healthcare corridors where hygiene trumps aesthetics, supported by ISO-class clean-room certifications. Early-stage pilot batches of graphene-enhanced vinyl from a Jeddah start-up hint at a materials science step-change aimed at boosting tensile strength by 30% while cutting plank thickness.

By End-Use Sector: Residential Foundations, Hospitality Acceleration

The residential sector accounted for 49.34% of the Saudi Arabia floor covering market in , anchored by housing programs targeting 70% homeownership. Interior upgrade cycles are shortening as rising disposable incomes drive secondary renovations in villas built post-. The Saudi Arabia floor covering market size attached to residential work is expanding at 6.4% annually, aided by mortgage term extensions that free cash for interior budgets. Developers are specifying 60 × 60 cm glazed porcelain for living areas and water-resistant laminates for bedrooms, driving batch-size complexity in factory planning.

Hospitality is the star growth vertical and is tracking an 11.75% CAGR to . Branded resorts under Amaala and The Red Sea will collectively demand over 3 million m² of mixed-material flooring, from broadloom Axminster carpets in ballrooms to composite decking on over-water villas. Operators insist on E1 formaldehyde ratings and slip-resistant values above R10, elevating compliance costs. Commercial offices are embracing raised-access flooring that eases cabling reconfiguration in modular layouts. Healthcare, retail, and education collectively form a mid-tier that values antimicrobial, easy-clean surfaces, steering suppliers toward homogeneous PVC with silver-ion additives.

Geography Analysis

Central Province remains the heart of the Saudi Arabia floor covering market with 37.80% share in , underpinned by Riyadh’s dominant 46.81% stake in national spend. Riyadh’s 10.22% CAGR through surpasses the province's average, driven by New Murabba, King Salman Park, and a steady stream of civic facilities. Warehouse rents climbed 10.5% to SAR 210/m² in , signalling robust commercial activity that feeds flooring consumption. Commercial projects default to high-performance porcelain, while luxury homes increasingly adopt imported natural stone and engineered wood that track international style benchmarks.

Western Province is the Kingdom’s growth locomotive at a 10.80% CAGR. Jeddah’s proximity to the Red Sea tourism and its role as a conduit to Mecca establish a diversified demand base. The Saudi Ministry of Hajj and Umrah plans to accommodate 30 million pilgrims a year by , spurring constant hotel and mixed-use expansions in Mecca and Medina. Warehouse leasing in Jeddah reached 97% occupancy at SAR 208/m², reflecting sustained trade activity that pulls resilient and ceramic volumes into refurbishments.

Eastern Province, anchored by Dammam, Khobar and Dhahran, services the oil and gas complex and leans heavily on specialized flooring. The Royal Commission for Jubail and Yanbu continues to enlarge industrial cities, requiring epoxy terrazzo, ESD-safe vinyl and heavy-duty ceramic. Export-oriented producers such as Arabian Tile Co. leverage their Dammam factories to serve Qatar and Bahrain, demonstrating the province’s combined consumer-producer role.

Northern and Southern provinces remain smaller but are gaining visibility as Neom, Diriyah Gate South and Asir tourism corridors convert master-plan blueprints into ground-breaking activity. Flooring suppliers that align early with procurement consortia for these sites can secure long-tail volume.

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