Saudi Arabia is rapidly transforming into a commercial hub, as Sotheby's announces plans to open an office and hold auctions in the Gulf state, reflecting the significant growth in the art and luxury market in recent years.
The first commercial auction will take place in Diriyah in February 2025, showcasing modern and contemporary art, handbags, cars, and sports memorabilia.
This news comes on the heels of Christie's announcement in September that it had been granted a license to operate in Saudi Arabia, although the auction house has not yet confirmed when sales will commence.
Since holding its first exhibition in Saudi Arabia in 2013, Sotheby's has aimed to tap into the growing population of wealthy youth. Those under 30 make up about two-thirds of the population, with nearly 50% of bidders last year being under the age of 40.
Ashkan Bagestani, head of fine arts sales at Sotheby's, states, "Given the metrics, it’s clear that Saudi Arabia is a rapidly developing market with a young population and an increasing base of collectors."
He notes that between 2019 and 2023, the number of Saudi buyers surged by 74%, and the number of bidders grew by 125%. Sotheby’s CEO Charles F.
Stewart indicates that the launch reflects the auction house's support for the thriving cultural scene in the country, which "will empower the large youthful demographic of Saudi Arabia."
However, luxury remains the main driver of the Saudi market. Vincent Bracisco, head of luxury goods sales at Sotheby's, remarks, "Currently, the majority of Saudi shipments focus on luxury goods, with watches and jewelry being the leading categories in terms of spending and number of bidders."
