Decoding Saudi Arabia’s Gen Z, a generation on the ascent
Saudi Arabia is transforming, as it diversifies its oil-heavy economy with sports, tourism and high-tech industries. Powering this expansion is a young population — 63% of Saudis are under 30 — whose preferences and desires are set to redefine the Middle East’s consumer market, and its media and advertising.
Amid this generational shift, opportunities for marketers abound. The Saudi economy is increasingly powered by consumer spending. The country’s GDP per capita adjusted for purchasing power parity, at approximately $70,000, is already above that of many Western countries, such as Germany, Australia and the U.K. And retail sales in the country are projected to be on a steady upward trajectory for the next few years.
Willing to spend and optimistic about their prospects, young Saudis are up to twice as likely to opt for higher-priced brands and retailers compared to their peers in advanced economies, according to a recent McKinsey report.
Companies pursuing Saudi Gen Zers, from Nike to Samsung, are likely to find a receptive, digitally savvy audience ready to embrace new products and brands.
“No other country has had so much change, so rapidly, in recent years as Saudi Arabia. The economic and social transformation of the kingdom has opened up a world of new global influence on Saudi Gen Zers,” says Mohaned Lafi, managing director of corporate and business at Four Agency Worldwide.
“International advertisers should look to capitalize on the rising interest of Saudi youth in gaming, sport, travel and art, whilst recognizing the progress of the country and its national identity and heritage.”
Live sports, in particular, are a key focus of the kingdom’s Vision 2030 plan to diversify its economy. Investments in boxing, golf, tennis, soccer and esports are just some examples of the country’s ambition to reshape global athletics.
Brands will likely benefit from having more ways to reach this key demographic, as connected TV (CTV) and audio challenge social media for young Saudis’ attention.
“While social media is huge in the region, channels like CTV and audio offer different ways to engage Saudi Gen Zers,” says Alex Hawkins, director of strategic foresight at The Future Laboratory. “They allow for content that feels less intrusive and more in tune with how this generation consumes media.”
Blending in with Gen Z
Saudi Arabia’s media and advertising landscape is both similar and different to what advertisers are used to in places like the U.S. and Europe.
While global players like Instagram, Netflix and Spotify are household names in the country, local players like Saudi streamer Shahid and music app Anghami (MENA’s answer to Spotify) are also resonating with Saudis, thanks to their growing libraries of local content.
Saudi Gen Zers are more likely than their global peers to say they try to avoid advertising, says Matt Smith, trends manager at GWI. Religious considerations also play a crucial role, with digital marketing needing to align with local values and traditions, says Four Agency’s Lafi.
“Gen Z’s high skepticism to advertising combined with the Saudi youth’s national pride is a potent mix not to be taken lightly,” says Rawad El Dahouk, head of strategy at TBWA\RAAD Saudi Arabia.
Like other Gen Z audiences around the world, Saudi youth increasingly value authenticity and are more likely to engage with campaigns that are genuine and relatable, adds Lafi. “They appreciate brands that understand the culture, history and context of the Kingdom of Saudi Arabia and its vision for the future.”
Indeed, The Future Laboratory’s latest report on luxury in Saudi Arabia found that 95% of affluent 18- to 34-year-old Saudis believe it’s important to support and engage with Saudi-first enterprises and celebrate local craft and design.
“The days of simply localizing content for Saudi Arabia are long gone. Global and regional brands have to talk local to resonate,” says El Dahouk. That could mean focusing on women’s empowerment, celebrating local arts, enabling entrepreneurs, championing local sustainability efforts or simply being actively present during Ramadan or Eid.
“Content has to feel, sound and look as if it was ‘made for Saudi’ specifically — ‘made in Saudi’ being a definite bonus, and better yet, ‘made by a Saudi’ — for Gen Z’s final seal of approval,” adds El Dahouk.
Beyond social media
While young Saudis spend a lot of time on social media, the experts who spoke to The Current believe CTV and audio can offer advertisers new ways to engage with this audience.
“CTV offers the advantage of combining the visual appeal of video with the precision of digital advertising, making it a powerful tool for capturing the attention of Saudi youth,” says Lafi.
“CTV is great for storytelling that goes beyond just a quick ad,” adds The Future Laboratory’s Hawkins. “On the audio front, whether through podcasts or music streaming, it’s all about connecting with Gen Z in a more intimate and personal way, which can build stronger brand relationships over time.”
Saudi Arabians already lead the world on time spent streaming TV, ahead of even U.S. viewers. And almost all — 96% — of internet users aged 16 to 24 in Saudi Arabia are video -on-demand viewers, while 73% listen to digital audio.
They aren’t just streaming more — figures show that the effectiveness of ads run on these channels is also increasing. According to GWI data shared by Smith, since 2021, the number of Saudi Gen Zers who say they discover new brands and products through ads on streaming TV and podcasts has increased by 19% and 9%, respectively.
“They’re spending over 30 minutes more than other Gen Zers globally listening to podcasts and watching streaming TV, and these channels’ influence on their purchase behavior is increasing too,” says Smith.