Scent economy rises as Gulf fragrances shape identity and status

Scent economy rises as Gulf fragrances shape identity and status
Fragrance demand is expected to continue growing, driven primarily by the youth market, primarily comprising urban consumers aged 20 to 40, with women leading the way in consumption. (Getty)
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Updated 05 July 2025
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Scent economy rises as Gulf fragrances shape identity and status

Scent economy rises as Gulf fragrances shape identity and status
  • Demand for high-end artisanal fragrances and the rise of online commerce are reshaping the market

RIYADH: In the Gulf, fragrance and its various perfume notes are increasingly seen not just as personal accessories but as symbols of identity, refinement, and wealth.

From morning rituals with oud to intricate perfume layering before gatherings, the scent economy is booming across the Gulf Cooperation Council region. This regional passion has fueled a multi-billion-riyal industry, deeply rooted in tradition, yet continually evolving through innovation.

According to a recent report by Research and Markets, Saudi Arabia’s perfume market is projected to grow from $2.12 billion in 2023 to $3.57 billion by 2033, registering a compound annual growth rate of 5.94 percent.

Demand for high-end and artisanal fragrances, greater ecological awareness, and the rise of online commerce are reshaping the market.

From ritual to refinement

In the Gulf, fragrance is more than just an aesthetic choice; it’s a cultural expression, often beginning with the application of Royal Cambodian oud, followed by the practice of layering complementary scents.

Both Rasasi and Lattafa Perfumes, major fragrance brands across the GCC, emphasize how deep-rooted traditions are central to the region’s distinctive scent profile.

“Scent is deeply embedded in the cultural and spiritual fabric of the Gulf. Unlike Western fragrance preferences that often lean toward freshness or minimalism, the GCC palette is bold, sensual, and opulent — driven by heritage ingredients like oud, amber, rose, and saffron,” said Talha Kalsekar, head of marketing at Rasasi Perfumes.

He added: “These are not seasonal indulgences but part of daily rituals — from welcoming guests to post-shower layering. It’s also a multi-sensory form of expression: to wear scent is to project dignity, refinement, and often, status.” 

Consumers in the GCC are no longer just buying scents — they’re curating olfactory wardrobes. They understand ingredients, appreciate craftsmanship, and are willing to spend more on exclusive blends.

Talha Kalsekar, head of marketing at Rasasi Perfumes

Echoing this, Fragrance Development Head at Lattafa Perfumes, Abdul Rahim Shaikh, said: “Scent in Gulf culture is symbolic, it signals pride, hospitality, and self-respect. Certain notes like oud, musk, rose, and amber aren’t just popular, they are integral to religious, social, and even business rituals.”

This cultural resonance influences both the composition and consumption of perfumes. From layering of oils, sprays, and incense to the use of oud, musk, rose, and saffron, these ingredients are not trends, but mainstays.

The modern customer

Both brands are experiencing a shift in their customer base, now engaging with a more informed and expressive clientele, one that values storytelling, sustainability, and personalization just as much as the quality of the scent itself.

“Consumers in the GCC are no longer just buying scents — they’re curating olfactory wardrobes. They understand ingredients, appreciate craftsmanship, and are willing to spend more on exclusive blends, limited editions, and artisanal formats,” Kalsekar said.

Lattafa highlighted this evolution as well: “They are looking for emotional connection and long-lasting quality ... The preference leans toward intense, long-lasting, and layered compositions.”

This growing discernment has given rise to gender-neutral perfumes, higher concentrations such as extrait de parfum, and niche storytelling, especially popular among younger demographics.

This is also evident in the rise of demand for full-scent experiences, including body oils, hair mists, and incense-inspired aromas.

Tech meets tradition

Innovation is a defining trait of the evolving fragrance economy. Both Rasasi and Lattafa are integrating artificial intelligence to personalize experiences and streamline product development.

“We’re actively exploring the intersection of scent and technology. While our roots are artisanal, we recognize the value of AI in streamlining formulation processes, especially for large-scale testing and trend forecasting,” said Kalsekar.

He added: “We’re also experimenting with in-store scent personalization tools — allowing customers to co-create their fragrances.”

Lattafa is also blending AI modeling with traditional craftsmanship. “While we remain deeply committed to the artistry of perfumery, we’re exploring the role of AI and personalization to enhance consumer experience. We’re currently working on tech integrations that allow for better digital scent discovery and curated recommendations across our e-commerce platforms,” Shaikh said.

Although AI can be a tool for personalizing scent creation, Shaikh emphasized that it will not replace intuition and tradition.

The digital dimension

With Saudi Arabia’s population becoming increasingly digital-savvy, brands are investing heavily in online infrastructure to align with changing shopping behaviors.

Social media and e-commerce platforms now serve as essential tools for storytelling, customer engagement, and market expansion.

In parallel with these digital shifts, Beautyworld Saudi Arabia, the largest trade fair for the aesthetics industry in the nation held in Riyadh in April, offered a tangible platform for brands to establish a physical presence in the Kingdom. 

The event also included several business matchmaking sessions and panel discussions, enabling regional and international fragrance brands to network, explore distribution deals, and assess market entry strategies for Saudi Arabia’s growing luxury sector.

Fragrance World Perfumes, for example, used its debut at the 2024 edition of the event not just as a launchpad, but as a bridge between its global digital identity and on-the-ground consumer engagement.

Operating in over 125 countries, the UAE-based manufacturer leveraged the gathering to showcase multiple fragrance lines and reinforce its commitment to the Kingdom’s growing beauty and luxury sectors.

Lattafa, in particular, is capitalizing on social media virality, citing how fragrances like Khamrah have gained traction on platforms such as TikTok and Instagram. Shaikh noted that fragrance today is not only worn but also seen and shared, becoming both a visual and cultural phenomenon.

Rasasi also views digital and physical retail as intertwined.

“Physical retail remains essential — it’s where the emotional connection to scent is first made. So we see online and offline not as competitors, but as complementary chapters of the same brand experience,” said Kalsekar.

Luxury, loyalty and local pride

Saudi Arabia is facing intense competition from both global and regional players in the industry.

While brands like Chanel and Dior retain their prestige, homegrown names like Abdul Samad Al-Qurashi and Arabian Oud dominate through cultural connection.

A half tola, or around 6 milliliters, of Royal Cambodian oud from Arabian Oud costs SR600 ($160). 

To remain competitive, physical retail continues to adapt. Ghawali, the Chalhoub Group’s fragrance brand, launched a flagship store in Riyadh’s Nakheel Mall in January 2023, blending modern design with traditional elements and preparing to unveil a Saudi-inspired fragrance collection.

Further emphasizing cultural continuity, the “Perfumes of the East” exhibition held in May 2024 under the patronage of Prince Badr bin Farhan, displayed over 200 artifacts at the National Museum in Riyadh. The show celebrated the Arab world’s enduring relationship with fragrance.

Fragrance outlook

The Eau de Parfum segment is forecasted to dominate due to its longevity and intensity, qualities valued in the region.

Fragrance demand is expected to continue growing, driven primarily by the youth market, primarily comprising urban consumers aged 20 to 40, with women leading the way in consumption.

Import duties and high costs remain barriers, but these challenges have led to a rise in regional manufacturing and increased interest in niche local offerings.


Trump says US to levy 100% tariff on imported chips, but some firms exempt

Trump says US to levy 100% tariff on imported chips, but some firms exempt
Updated 5 sec ago
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Trump says US to levy 100% tariff on imported chips, but some firms exempt

Trump says US to levy 100% tariff on imported chips, but some firms exempt

WASHINGTON: President Donald Trump said the US will impose a tariff of about 100 percent on imports of semiconductors but offered up a big exemption — it will not apply to companies that are manufacturing in the US or have committed to do so.

The move is part of Trump’s efforts to bring manufacturing back to the US, and his remarks on Wednesday were made in tandem with an announcement that Apple would be investing an additional $100 billion in its home market.

For companies like Apple, which have committed to build in the US, “there will be no charge,” he told reporters in the Oval Office.

He warned, however, that companies should not try to wrangle out of pledges to build US factories.

“If, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that’s a guarantee,” Trump added.

The comments were, however, not a formal tariff announcement, and much remains unclear about how companies and countries around the world will be impacted.

Trump’s mention of the proposed 100 percent rate for chips came in just ahead of US levies of 10 percent to 50 percent kicking in on Thursday for many goods from dozens of trading partners.

Rates on semiconductors and other key tech goods have been the subject of a US national security probe — the results of which are expected to be announced by mid-August.

Trump’s Wednesday remarks produced an immediate flurry of reactions from concerned countries and business lobbies.

South Korea’s top trade envoy said on Thursday that major chipmakers Samsung Electronics and SK Hynix will not be subject to 100 percent tariffs, and South Korea will have the most favorable levies on semiconductors under a trade deal between Washington and Seoul.

Samsung and SK Hynix declined to comment.

On the other end of the spectrum, the president of the Philippine semiconductor industry, Dan Lachica, said Trump’s plan would be “devastating” for his country.

In Malaysia, which is a big player in chip testing and packaging globally, trade minister Tengku Zafrul Aziz warned parliament his country “will risk losing a major market in the United States if its products become less competitive as a result of the imposition of these tariffs.”

Survival of the biggest

Taiwan’s National Development Council Minister Liu Chin-ching told reporters on Thursday that Taiwanese companies have been building US plants or buying US firms with local factories as well as collaborating with US chipmakers to counter potential chip tariffs.

Taiwanese chip contract manufacturer TSMC is expected to be relatively unscathed as it has US factories, so key customers such as Nvidia are unlikely to face increased tariff costs for US-made chips.

Nvidia, which makes cutting-edge AI graphics processing units, also plans to invest hundreds of billions of dollars in the US TSMC did not immediately reply to a request for comment, and an Nvidia spokesperson declined to comment.

“Large, cash-rich companies that can afford to build in America will be the ones to benefit the most. It’s survival of the biggest,” said Brian Jacobsen, chief economist at investment advisory firm Annex Wealth Management.

Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. The Commerce Department under President Joe Biden last year convinced all five leading-edge semiconductor firms to locate chip factories in the US as part of the program.

The department said the US last year produced about 12 percent of semiconductor chips globally, down from 40 percent in 1990.

“There’s so much serious investment in the United States in chip production that much of the sector will be exempt,” said Martin Chorzempa, senior fellow at the Peterson Institute for International Economics.

He added that chips made by China’s SMIC or Huawei are unlikely to be exempt, but noted that chips from these companies entering the US market were mostly incorporated into devices assembled in China.

“If these tariffs were applied without a component tariff, it might not make much difference,” he said.

The EU has said it agreed to a single 15 percent tariff rate for the vast majority of EU exports, including cars, chips and pharmaceuticals. Japan has said that the US agreed not to give it a worse tariff rate than other countries on chips.

Shares in Asian chipmakers with big US investment plans climbed on Thursday, with TSMC and Samsung up 4.4 percent and 2 percent respectively. Silicon wafer producer GlobalWafers, which has a plant in Texas, jumped 10 percent.

GlobalWafers said it has proactively implemented cost reduction strategies and believes it has an opportunity to maintain competitiveness.


China’s exports top forecasts as shippers rush to meet tariff deadline

China’s exports top forecasts as shippers rush to meet tariff deadline
Updated 46 sec ago
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China’s exports top forecasts as shippers rush to meet tariff deadline

China’s exports top forecasts as shippers rush to meet tariff deadline
  • Exports rose 7.2% year-on-year in July, imports grew 4.1%
  • China faces Aug. 12 deadline to reach trade deal with US

BEIJING: China’s exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods, especially to Southeast Asia, ahead of tougher US duties targeting transhipment.

Global traders and investors are waiting to see whether the world’s two largest economies can agree on a durable trade deal by Aug. 12 or if global supply chains will again be upended by the return of import levies exceeding 100 percent.

US President Donald Trump is pursuing further tariffs, including a 40 percent duty on goods rerouted to the US via transit hubs that took effect on Thursday, as well as a 100 percent levy on chips and pharmaceutical products, and an additional 25 percent tax on goods from countries that buy Russian oil.

China’s exports rose 7.2 percent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 percent increase in a Reuters poll and accelerating from June’s 5.8 percent growth.

Imports grew 4.1 percent, defying economists’ expectations for a 1.0 percent fall and climbing from a 1.1 percent rise in June.

China’s trade war truce with the US — the world’s top consumer market — ends next week, although Trump hinted further tariffs may come Beijing’s way due to its continuing purchases of Russian hydrocarbons.

“The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade,” said Xu Tianchen, senior economist at The Economist Intelligence Unit.

“I have no doubt Trump’s transhipment tariffs are aimed at China, since it was already an issue during Trump 1.0. China is the only country for which transhipment makes sense, because it still enjoys a production cost advantage and is still subject to materially higher US tariffs than other countries,” he added.

China’s exports to the US fell 21.67 percent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 percent over the same period.

The levies are bad news for many US trading partners, including the emerging markets in China’s periphery that have been buying raw materials and components from the regional giant and furnishing them into finished products as they seek to move up the value chain.

China’s July trade surplus narrowed to $98.24 billion from $114.77 billion in June. Separate US data on Tuesday showed the trade deficit with China shrank to its lowest in more than 21 years in June.

Despite the tariffs, markets showed optimism for a breakthrough between the two superpowers, with China and Hong Kong stocks rising in morning trade. Trump indicated earlier this week that he might meet Chinese President Xi Jinping later this year if a trade deal was reached.

TRADE UNCERTAINTY

China’s commodities imports painted a mixed picture, with soybean purchases hitting record highs in July, driven by bulk buying from Brazil while avoiding US cargoes. Analysts, however, cautioned that inventory building may have skewed the import figures, masking weaker underlying domestic demand.

“While import growth surprised on the upside in July, this may reflect inventory building for certain commodities,” said Zichun Huang, China economist at Capital Economics, pointing to similarly strong purchases of crude oil and copper.

“There was less improvement in imports of other products and shipments of iron ore continued to cool, likely reflecting the ongoing loss of momentum in the construction sector,” she added.

A protracted slowdown in China’s property sector continues to weigh on construction and broader domestic demand, as real estate remains a key store of household wealth.

Chinese government advisers are stepping up calls to make the household sector’s contribution to broader economic growth a top priority at Beijing’s upcoming five-year policy plan, as trade tensions and deflation threaten the outlook.

Reaching an agreement with the US — and with the European Union, which has accused China of producing and selling goods too cheaply — would give Chinese officials more room to advance their reform agenda.

However, analysts expect little relief from Western trade pressures. Export growth is projected to slow sharply in the second half of the year, hurt by persistently high tariffs, President Trump’s renewed crackdown on the rerouting of Chinese shipments and deteriorating relations with the EU.


Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms
Updated 41 min 16 sec ago
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Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

LONDON: Oil prices rose on Thursday, recovering from a five-day losing streak, on signs of steady demand in the US, the world’s largest oil consumer, although concerns over the economic impact of Washington’s tariffs capped gains.

Brent crude futures was up 41 cents, or 0.6 percent, at $67.3 a barrel, as of 9:07 a.m. Saudi time.

US West Texas Intermediate crude climbed 0.6 percent to $64.76, gaining 41 cents.

Both benchmarks slid about 1 percent on Wednesday to their lowest levels in eight weeks following US President Donald Trump’s remarks on progress in talks with Moscow.

Trump could meet Russian President Vladimir Putin as soon as next week, a White House official said, though the US continued preparations to impose secondary sanctions, including potentially on China, to pressure Moscow to end the war in Ukraine.

Russia is the world’s second-biggest producer of crude after the US.

Still, oil markets found support from a bigger-than-expected draw in US crude inventories last week.

The Energy Information Administration said on Wednesday that US crude oil stockpiles fell by 3 million barrels to 423.7 million barrels in the week ended August 1, exceeding analysts’ expectations in a Reuters poll for a 591,000-barrel draw.

Inventories fell as US crude exports climbed and refinery runs climbed, with utilization on the Gulf Coast, the country’s biggest refining region, and the West Coast climbing to their highest since 2023.

Analysts at JP Morgan said in a note that global oil demand through August 5 has averaged 104.7 million barrels per day, tracking annual growth of 300,000 bpd, but 90,000 bpd below their forecast for the month.

“Despite a slightly soft start to the month, relative to our expectations, high frequency indicators of oil demand suggest global oil consumption is likely to improve sequentially over the coming weeks,” the analysts said, with jet fuel and petrochemical feedstocks anticipated to drive the consumption growth.

Meanwhile, China’s crude oil imports in July dipped 5.4 percent from June but were still up 11.5 percent year on year, with analysts expecting refining activity to remain firm in the near term.

Still, global macroeconomic uncertainty after the US ordered a fresh set of tariffs on Indian goods capped price gains.

Trump on Wednesday imposed an additional 25 percent tariff on Indian goods, citing their continued imports of Russian oil. The new import tax will go into effect 21 days after August 7.

“While these new duties (on India by the US) are set to take effect in three weeks, markets are already pricing in the downstream ripple effects on trade flows, emerging market demand, and broader energy diplomacy,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.

Trump also said he could announce further tariffs on China similar to the 25 percent duties announced earlier on India over its purchases of Russian oil.

“Tariffs are likely to harm the global economy, which will ultimately affect fuel demand,” said Phillip Nova’s Sachdeva, adding that markets are overlooking the fact that its impact will still be much greater on the US economy and inflation. 


Saudi Aramco lifts crude prices for Asian buyers

Saudi Aramco lifts crude prices for Asian buyers
Updated 06 August 2025
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Saudi Aramco lifts crude prices for Asian buyers

Saudi Aramco lifts crude prices for Asian buyers

RIYADH: Saudi Aramco has increased the official selling price of its flagship Arab Light crude for Asian buyers in September.

The state-owned energy giant raised the Arab Light price by $1 per barrel from August to a premium of $3.20 over the average of Oman and Dubai crude benchmarks, according to an official statement issued on Wednesday. Prices for Arab Extra Light rose by $1.20 per barrel, while Arab Heavy gained $0.70.

In North America, Aramco set the September OSP for Arab Light at $4.20 per barrel above the Argus Sour Crude Index. The company prices its crude across five density-based grades: Super Light (above 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

Aramco’s monthly pricing decisions influence around 9 million barrels per day of crude exports to Asia and act as a benchmark for other major producers, including Iran, Kuwait, and Iraq. The adjustments are based on feedback from refiners and an assessment of crude value changes, product prices, and yields.

The price revisions come as the OPEC+ alliance agreed earlier this week to increase collective oil production by 547,000 barrels per day in September, citing improved global economic prospects and stable market fundamentals.

This move concludes the phased reversal of 2.2 million bpd in voluntary cuts introduced by eight members in 2023 to stabilize prices amid economic uncertainty.

The group reaffirmed its commitment to full compliance with the Declaration of Cooperation, with the Joint Ministerial Monitoring Committee continuing oversight.

The September hike will raise Saudi Arabia’s output to 9.97 million bpd. Russia is set to produce 9.44 million bpd, Iraq 4.22 million, and the UAE 3.37 million. Output targets for Kuwait, Kazakhstan, Algeria, and Oman are projected at 2.54 million, 1.55 million, 959,000, and 801,000 bpd, respectively.


Syria signs $14bn in investment deals, including airport and subway projects

Syria signs $14bn in investment deals, including airport and subway projects
Updated 06 August 2025
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Syria signs $14bn in investment deals, including airport and subway projects

Syria signs $14bn in investment deals, including airport and subway projects

CAIRO: Syria signed 12 investment deals worth $14 billion on Wednesday in a ceremony attended by interim President Ahmed Al-Sharaa, including infrastructure, transportation and real estate projects aimed at reviving the war-damaged economy.

The agreements included a $4 billion deal for building a new airport in Damascus signed with Qatar’s UCC holding, and a $2 billion deal to establish a subway in the Syrian capital with the UAE’s national investment corporation.

Other major developments include the $2 billion Damascus Towers project signed with Italy-based UBAKO.

In July, Syria signed $6.4 billion of investments with Saudi Arabia as it seeks to rebuild after a 14-year civil war.