Saudi Arabia’s interior design industry is witnessing an unprecedented growth phase, set to reach USD 10.4 billion by 2035, according to VynZ Research. Valued at USD 4.1 billion in 2025, the sector is projected to expand at a steady 6.3% CAGR over the next decade, reflecting the Kingdom’s ambitious urban and economic transformation under Vision 2030. From luxury villas to hospitals, offices, and mixed-use developments, interiors are no longer just decorative, they are integral to how spaces function, appeal, and inspire.
Vision 2030 Driving Interior Design Demand
The Kingdom’s Vision 2030 continues to be the engine behind this surge. Large-scale urbanisation, hospitality projects, healthcare infrastructure, and commercial hubs are all fuelling demand for sophisticated, turnkey interior solutions. Cities such as Riyadh, Jeddah, Makkah, and Madinah are emerging as hotspots, while new economic zones attract projects with high design aspirations. This growth reflects a shift in perception: interiors are now seen as essential to lifestyle, wellbeing, and operational efficiency, rather than an afterthought.
Integrated Design and Turnkey Solutions Gain Ground
Clients are increasingly favouring end-to-end interior solutions, where a single provider handles design, procurement, and execution. Nearly half the market now revolves around such bundled solutions, particularly for large housing projects, hotels, offices, and government developments. Developers value this approach for its efficiency, accountability, and faster delivery timelines.
At the same time, sustainability and cultural alignment are emerging as priorities. Interiors that balance energy efficiency with regional aesthetics are gaining traction, especially in high-value, long-term projects. From eco-conscious materials to adaptive spatial planning, the design approach is evolving to combine functionality with identity.
Sector Growth Powered by Multiple Drivers
Several key trends are shaping this rapid expansion:
- Healthcare interiors: Hospitals, clinics, and medical cities now account for nearly 60% of interior design demand, reflecting investment in state-of-the-art healthcare infrastructure.
- Hospitality boom: Hotels, resorts, and entertainment destinations are investing in curated, immersive interior experiences.
- Luxury residential upgrades: Rising disposable income is driving demand for premium home interiors and renovations.
- Mixed-use urban hubs: Developments combining residential, commercial, and leisure spaces are redefining city life.
Challenges Amid the Boom
Despite the positive outlook, the sector faces hurdles. Rising costs of premium materials, complex approval processes, and reliance on imported resources pose operational challenges. Additionally, the availability of skilled local designers remains limited, making talent acquisition a critical bottleneck during peak project cycles.
Opportunities in Smart, Sustainable, and Luxury Interiors
Opportunities abound for firms that embrace innovation. Government-backed infrastructure projects, luxury and ultra-luxury interiors, and smart, AI-enabled spaces are among the fastest-growing segments. Sustainable and recycled materials, growing at nearly 8% annually, are becoming central to modern interiors, reflecting the global push for eco-friendly design.
Design firms offering scalable yet flexible solutions are increasingly favoured by institutional and residential clients. Developers are seeking consistency across large projects without compromising individuality, and turnkey providers are stepping in to bridge that gap.
Regional Outlook: Riyadh, Jeddah, and Eastern Province Lead
Riyadh continues to dominate, accounting for around 40% of market demand, driven by corporate, residential, healthcare, and government projects. Makkah Province follows at 26%, powered by hospitality, retail, and religious tourism infrastructure, while the Eastern Province contributes roughly 15%, led by industrial-linked housing and education facilities. Each region presents distinct opportunities shaped by urban density, client preferences, and development focus.
Segment Insights: Luxury, Mid-Range, and Sustainable Interiors
New-build projects account for the majority of demand at 66%, while renovation projects grow steadily at 7.2% annually. Mid-range interiors hold the largest share at 42%, yet luxury and ultra-luxury segments are expanding faster, underlining the appetite for high-end design.
Wood and timber remain the dominant materials, while sustainable options show the highest growth. Residential projects lead in revenue contribution, but hospitality and leisure interiors are the fastest-growing segment, reflecting the sector’s evolving priorities.
Competitive Landscape
The market is shaped by a mix of local design leaders and global firms, competing on creativity, execution, cost efficiency, and the ability to deliver end-to-end projects. Success hinges on balancing design excellence with operational efficiency, while staying aligned with regional tastes and sustainability standards.
The Future of Interiors in Saudi Arabia
With Vision 2030 accelerating construction and urbanisation, Saudi Arabia’s interior design market is entering a golden era. From AI-enabled smart homes to sustainable luxury hotels, the sector is evolving to meet the demands of modern clients, blending culture, efficiency, and innovation. Interior design is no longer a background function—it is central to the Kingdom’s vision of vibrant, functional, and aesthetically sophisticated urban living.
