Saudis spend SR6.1bn on Oud-based perfumes

Saudis spend more than SR6.1 billion every year on oud-based perfumes, accounting for half of overall spending on the wood-based incense among GCC citizens, local media said quoting global investors.
The Middle East is considered the fastest growing market in the world in terms of oud perfumes. Saudis, in particular, used to purchase oud perfumes seasonally and on special occasions, which makes the perfumes market extremely active, Andrew Steel, CEO of Treedom Group, told a local daily.
The Saudi market represents 90 percent of the oud oil wholesales trade in the region.
Fifty percent of oud perfume purchases are bought as gifts, while the remaining 50 percent goes for personal consumption, he said.
He said that many companies are engaged in the manufacture of aromatic oud oil, but that the majority of companies in the Middle East are retail traders.
A purchaser has to check the oud’s quality and ensure that it has been manufactured in accordance with international trade conventions and regulations.
Demand for aromatic oud oil increases with the advent of Eid festivities. Traders often knock 50 to 70 percent off the price of oud during these seasons, fueling competition in the sector, the paper said.
Oud oil is sold in a 12-gram “tula” pack. Prices vary according to quality and means of manufacture. A single pack can cost anywhere between SR300 and SR3,000.