Fendi Casa Opens First Saudi Arabia Flagship Amid Foreign Investment Boom; Peers Mull Further Potential

MILAN — Amid a boom in foreign investment and improved personal spending power, Fendi Casa is the latest Italian luxury name to land in Saudi Arabia.

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On Monday, Fendi Casa revealed plans to open a store in Riyadh.

This launch marks a significant milestone in the brand’s global expansion, as the Saudi Arabian luxury retail market piques the interest of fellow European design brands.

“Saudi Arabia is a key market for Fendi Casa and Riyadh, with its dynamic growth and evolving luxury landscape, represents a strategic opening for us. By establishing our flagship boutique in this vibrant city, we will be able to connect directly with a sophisticated clientele that values the Fendi brand while further expanding our presence in a market with significant potential for future growth,” said Alberto da Passano, chief executive officer of Fendi Casa. Earlier this month, Fendi Casa opened a second flagship in China, located in Chengdu’s Yintai Center in99.

In a statement, the company said the new flagship in Riyadh will open soon on the capital’s upscale Tahlia Street and in partnership with Dar Al Arkan Interiors, the Kingdom’s leading luxury branded furniture company. The new showroom will feature furniture and accessories, envisioned by global designers under the creative direction of Silvia Venturini Fendi. “It is poised to redefine the luxury home interiors landscape in Saudi Arabia,” Fendi Casa claimed.

Since its inception in 2022, Fendi Casa’s new partner Dar Al Arkan Interiors has been on a roll. The firm, which specializes in luxury branded furniture and operates nine showrooms across Riyadh and Jeddah, already has Armani Casa, Versace Home, Bentley Home, Dolce & Gabbana Casa, Missoni Home and Elie Saab Maison under its umbrella in the region.

The boutique was designed under the supervision of the Fendi headquarters architecture department and spans about 3,800 square feet.

An Economic Boom

Earlier this month, Saudi Arabia’s Ministry of Investment reported a surge in foreign direct investment to the Arab world’s biggest economy. In 2023, foreign direct investment inflows totaled 96 billion riyals, or $25.6 billion. Retail — along with manufacturing, finance and insurance, construction and wholesale — was a main driver for FDI last year, the report showed.

Personal spending is also going strong, according to Dubai-based retailer operator Chalhoub Group, which has a portfolio of eight owned brands and 300 international ones across luxury, beauty, fashion and art de vivre across the region. In a report released in July, Chalhoub Group underscored the potential for sustained growth in the years to come, bolstered by a positive outlook on the regional economy. Data compiled by its own poll of the GCC — Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates — showed that 93 percent of its respondents claimed to be doing well financially. Among them, 60 percent of respondents in Saudi Arabia stated they believed economy is stronger, while 70 percent of affluent Saudi Arabian consumers polled reported that the economy has improved over the past three months.

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Design in Full Swing

In parallel with fueling retail expansion for European luxury brands in Saudi Arabia, the nation is also focusing more on growing its design economy overall, helped greatly by organizations like the arts and creative industries at the Royal Commission for Alula and the establishment of the Ministry of Culture’s Architecture and Design Commission in 2018, as well as the Saudi Fashion Commission to boost the country’s fashion sector. Design activations and initiatives represent a small but significant part of the Saudi government’s strategy to drive the growth and diversification of its economy, as its government works toward several of its Vision 2030 goals, including increasing the private sector’s contribution to gross domestic product to 65 percent and increasing the contribution of non-oil exports from 16 to 50 percent, among others.

It’s unclear how much the Saudi government has invested in the design industry. According to the State of Fashion in Saudi Arabia report for 2023, fashion by comparison contributed 1.4 percent of the nation’s GDP and 230,000 jobs in 2022, which rose to more than 2.5 percent last year.

Luxury European design firms are primed for growth in Riyadh. Roche Bobois , a French family business, was a pioneer in the region, opening in 2007, and it now has stores in both Jeddah and Riyadh. Bari, Italy-based Natuzzi reopened its Riyadh store on King Fahd Road in July 2024 and now features its latest product innovations and architectural concept developed with designer Fabio Novembre. Martin Gleize, Roche Bobois’ international director, told WWD that the brand, which works with a local franchisee, renovated its showroom there in 2023. “It’s been performing well ever since,” Gleize said, adding that digital communication has helped a lot in the region.

Listed furnishings, lighting and contract group Dexelance , which is home to upscale brands like Saba Italia, Gervasoni and Meridiani, said it currently has no plans to open any doors in Saudi Arabia, but its team is watching economic developments there closely.

“We are following very closely the developments of projects related to Vision 2030. All our companies are obviously very interested in what is happening in the area and see the potential,” Dexelance managing director Giorgio Gobbi told WWD.

Fellow luxury furniture firm Giorgetti already has a store in Jeddah but said it’s gearing up to open a 4,300-square-foot space in Riyadh’s King Abdullah Financial District, an established retail area but one that’s new to the furniture industry. In a recent in-house company update, Giorgetti’s Middle East & Africa general manager Ruggero Ottogalli, said the upcoming Riyadh opening will guarantee a more direct presence for the brand.

“In terms of global furniture revenue, the Middle East North Africa region represents circa 3 to 3.5 percent. For Giorgetti, the region reaches about 6 to 7 percent, so it’s a presence that, in terms of percentages, is higher than average,” he said.

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